VANCOUVER, March 4, 2013 /PRNewswire/ - Brazil Resources Inc. (TSX-V: BRI; OTCQX: BRIZF) ( the "Company" or "Brazil Resources") is pleased to announce the results of a recently completed National Instrument 43-101 ("NI 43-101") mineral resource estimate, which was completed by Tetra Tech, Inc. ("Tetra Tech") on the Company's Cachoeira do Piria Gold Project, located in the Pará state, Brazil. The resource estimate has an effective date of March 1, 2013.
Stephen Swatton, President and CEO, stated: "This resource estimate from Tetra Tech, one of the world's leading mining consulting companies, is a milestone for the Company. We are currently reviewing all options to fully exploit the potential of the asset, including the possibility of developing multiple pits in addition to further exploration of the surrounding areas. The current drill spacing is approximately 60m, therefore the Company will embark on further tighter drilling with minimal cost to upgrade much of the inferred resource to the indicated resource category."
The Company recently signed a drilling contract with Servitec Foraco Sondagem S.A. and expects to commence an initial drill program at the Cachoeira Project in calendar Q2 2013, the size of which will be determined by the outcome of ongoing studies. The Company will also explore extensions of the currently known mineralized zones as in-house district wide studies intimate that mineralization may not only be constrained to the three zones identified on the property to date.
The difference in the total resources calculated by RPA and Tetra Tech is explained by the application of an in-pit design resource estimate incorporated in the technical report by RPA dated July 19, 2012 titled "Techncial Report on the Cachoeira Project, Pará State, Brazil" (the "RPA Estimate"). The preliminary Whittle pit optimization study completed by RPA in 2010 reported an indicated resource of 12.5 million tonnes grading 1.11 g/t gold and an inferred resource of 5.4 million tonnes grading 1.27 g/t gold. The resources, as reported by RPA, were constrained within an economic pit-shell with the following parameters: gold price of US$1,250, pit slope angles of 45 degrees, 90% gold recovery, mining cost between $2.50-2.60 per tonne and general and administration costs of US$1.50.
The RPA Estimate therefore, by definition, excluded many gold rich intersections which fell outside of the RPA defined pits for Arara, Coruja and Tucano. By comparison, the Tetra Tech estimate was constrained only by the geological models of the mineralized zones and by the lower threshold grade of 0.35 g/t gold.
About Brazil Resources Inc.
Brazil Resources is a public mineral exploration company with a focus on the acquisition and development of projects in emerging producing gold districts in Brazil, Paraguay 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.
SOURCE Brazil Resources Inc.