- District-scale Land Package, 198,068 Hectares (489,426
Acres)
- Along Southern Extension of the Prolific Cuiaba Gold Trend,
Mato Grosso State Brazil
- One of Only Two Precambrian Rock Exposures in the Republic
of Paraguay
VANCOUVER,
Oct. 4, 2012 /PRNewswire/ - Brazil
Resources Inc. (the "Company" or "Brazil Resources") (TSXV: BRI)
(OTCQX: BRIZF) is pleased to announce that it has acquired through
its wholly owned Paraguayan subsidiary, a mineral concession from
the Republic of Paraguay, covering
198,068 hectares (489,426 acres) in Concepcion State, Paraguay, (the "Apa High Project" or the
"Project"). The Project area is contiguous with the Brazilian
border and is located along the southern extension of the Cuiaba
Gold Belt, Mato Grosso State Brazil.
Stephen Swatton,
President and CEO, stated, "We are very pleased to announce
our first Project in Paraguay.
It is a natural fit for the Company to leverage our team's
understanding of the geology in Brazil with the similar geology in bordering
Paraguay. Paraguay has shown through government policy
that it is determined to establish itself as a leading mining
jurisdiction in South America,
which we believe has created a frontier opportunity."
In the Brazilian portion of the Cuiaba Belt,
also known as Apa Shield, there are
a number of well known large and mid-size mining companies
exploring for gold and base metal deposits, including Votorantim
(Nickel), Kinross (Gold) and MMX
(Copper).
The Project area contains one of the two exposed
areas in Paraguay where
Precambrian-age rocks occur and it is believed that this package of
rocks may be prospective for gold mineralization. To our knowledge
the only mining company to have explored in this area is Yamana
Gold Inc. which initiated gold exploration at Apa High in the
mid-1990s, however, much of the Project area remains
underexplored.
Company geologists have compiled and reviewed
available exploration data and geological literature. A structural
and geochemical analysis of the Project is planned through
available Landsat imagery to potentially identify prospective
target areas for reconnaissance field mapping and sampling.
The area was acquired by the Company through
Resolution 1692 issued by the Paraguayan Ministry of Public Works
and Communication (MOPC), which includes the Vice Ministry of Mines
and Energy. The resolution will allow the Company to conduct
initial prospecting and exploration activities over the concession
area for a period of eight years subject to acquiring the required
licenses.
The Company will need an environmental license
through MOPC and pay annual land fees to the Ministry of Mines and
Energy.
In other business the Company also announces
that it has completed the scheduled issuance of 100,000 common
shares under the terms of its mineral property option and joint
venture agreement with respect to its Montes Áureos and Trinta
Projects. The share issuance is in relation to the Company's option
to earn an initial 51% interest in the projects upon satisfying the
conditions thereof, including issuing an additional 100,000 common
shares on or before September 30,
2013 and incurring certain additional expenditures on the
projects. The Company also has an option to earn an additional 46%
interest in the Montes Áureos and Trinta Projects by satisfying
certain conditions prior to September 30,
2015.
Paulo Pereira,
the Company's Vice President of Exploration, has supervised the
preparation of the technical information contained in this news
release. Mr. Pereira holds a Bachelor's degree in Geology
from Universidade do Amazonas in Brazil, is a qualified person as defined in
National Instrument 43-101 and is a member of the Association of
Professional Geoscientists of Ontario.
About Brazil Resources Inc.
Brazil Resources is a newly public mineral
exploration company with a focus on the acquisition and development
of projects in emerging producing gold districts in Brazil and other parts of South America. Currently, the Company is
advancing its Cachoeira, Montes Áureos, Trinta and Maua Gold
Projects located in the Gurupi Gold Belt in the state of Maranhão,
northeastern Brazil, and its
Artulandia Copper-Gold Project in central Brazil. Brazil Resources is also seeking to
acquire and develop additional gold properties within Brazil and in additional emerging gold
districts in South America.
Forward Looking Statements
This document contains certain
forward-looking statements that reflect the current views and/or
expectations of the Company with respect to its performance,
business and future events, including statements regarding the
Company's beliefs regarding future exploration of the Project and
exploration plans in respect of the Apa High Project and its other
projects. Forward-looking statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about
the business and the markets in which the Company operates,
including that: the current price of and demand for minerals being
targeted by the Company will be sustained or will improve; the
Company's current exploration programs and objectives can be
achieved; financing will be available if and when needed on
reasonable terms; and the Company will be able to identify and
acquire additional mineral interests on reasonable terms or at
all. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, including: that
the Company has a limited operating history; that resource
exploration and development is a speculative business; that the
Company may lose or abandon its property interests; that the
Company's properties are in the exploration stage and without known
bodies of commercial ore; that the Company may not be able to
obtain all necessary permits and approvals on any of its
properties; that environmental laws and regulations may become more
onerous; that the Company may not be able to raise additional funds
when necessary; potential defects in title to the Company's
properties; fluctuations in currency exchange rates; fluctuating
prices of commodities; operating hazards and risks; potential
inability to find suitable acquisition opportunities and/or
complete the same and other factors listed in the
Company's public filings, including its Management's Discussion and
Analysis for the year ended November 30,
2011. These risks, as well as others, could cause
actual results and events to vary significantly. Accordingly,
readers should not place undue reliance on forward-looking
statements and information. There can be no assurance that
forward-looking information, or the material factors or assumptions
used to develop such forward looking information, will prove to be
accurate. The Company does not undertake any obligations to release
publicly any revisions for updating any voluntary forward-looking
statements, except as required by applicable securities
law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Patrick Obara
Telephone: (855) 630-1001
info@brazilresources.com
SOURCE Brazil Resources Inc.