VANCOUVER, Jan. 27, 2016 - Brazil Resources Inc. ("Brazil Resources", "BRI", or "the Company") (TSX-V: BRI; OTCQX: BRIZF) today issued a Letter to Shareholders regarding the Company's plans for 2016. The full report from the Company's Chairman, Amir Adnani, follows. 

Dear Fellow Shareholder,

On behalf of the board of directors and management of Brazil Resources, I am pleased to provide this update and outlook for 2016.

First, we sincerely appreciate your continued support of BRI and management's strategic growth plans. Thank you!

As you know, our growth strategy is premised on taking advantage of historically low valuations in the commodity business to make accretive acquisitions of resource projects, primarily in the gold sector. This strategy is focused on identifying and acquiring projects that present compelling value to our shareholders.  Our project portfolio gives us meaningful optionality and leverage with, what we believe to be, high quality gold projects in Brazil, uranium exploration with JV partner Areva Resources Canada Inc. ("Areva") in the western Athabasca Basin and the Whistler gold-copper project in Alaska. In 2015, with the acquisition of the Whistler project, we grew our resource base to 3.7 million ounces gold and gold equivalent in the indicated category and 5.9 million ounces gold and gold equivalent in the inferred category. The mineral resource table at the end of the letter provides details of the resource estimates, including grades, tonnage and gold equivalents for each of our properties.

The Whistler Gold-Copper Project had approximately 70,000 metres of drilling completed historically and, with several gold-copper porphyry deposits identified over an area of 170 square kilometres, it is truly a district-scale project, which we believe has good potential for resource expansion. The Company acquired the project for share consideration resulting in less than 5% dilution to our existing shareholders.

In 2016, we plan to continue to expand our asset base by taking advantage of the ongoing challenges in the resource markets. We are assessing opportunities in superior mining jurisdictions for acquiring resource projects at prices far below their replacement drilling and development costs. We expect to have more to report on this as the year develops.

Advances in Brazil

The Company has had a good year with our core projects in Brazil, Sao Jorge and Cachoeira. Both gold projects are now at the permitting stage and the Company's expenditures moving forward on the projects are minimal. Concurrently, the Brazilian Real has fallen from 52 cents Canadian in 2012, to 40 cents Canadian in 2015, and we benefit by getting more done at less cost. Similarly, the strengthened United States dollar has resulted in the Brazilian Real denominated costs trending lower in relation to gold prices, which are generally quoted in U.S. dollars. We continue to advance both projects without major expenditures.

At the Sao Jorge Gold Project in Para State, the Company has submitted a comprehensive final report to the DNPM for the exploration concession overlying the deposit recommending that it be converted to a mining concession. With DNPM approval, we plan to initiate environmental and engineering studies and apply for the necessary permits to further advance the project.

For the Cachoeira Gold Project in Para State, we have commenced environmental and mine permitting for the project, including having submitted the EIA/RIMA (Environmental Impact Assessment Report) to the state environmental agency and completed the public hearings that were validated by the state environmental agency in order to continue with the licensing process. The EIA/RIMA report is now under review and the Company is waiting to hear back from the agency.

Uranium Exploration Planned in 2016

We also anticipate developments in 2016 with the Company's Rea Uranium Project. This project gives BRI a very unique exposure to the uranium market in addition to our gold focus.

We acquired a 75% interest in the Rea project as part of our acquisition of Brazilian Gold Corporation in November 2013. The project covers approximately 88,400 hectares and is located in the western portion of the Athabasca Basin, one of the most exciting areas for uranium exploration in the world today due to recent, large, high-grade, near-surface discoveries. Areva, with exceptional experience in exploration and production within the Athabasca Basin, is our partner holding a 25% interest.

Prior operators have expended over $10 million in exploration on the project. In 2014, we completed a NI 43-101 technical report based on drilling and ground geophysics, which identified a number of targets that have potential to host unconformity-type uranium mineralization. The Rea uranium project surrounds Areva's high-grade Maybelle deposit.

In 2016, we plan to complete a winter geophysical program to refine drill targets for a future drill program. Since mid-2014, uranium prices have increased by approximately 25%. If this trend continues in 2016, as most energy analysts anticipate, highly prospective exploration projects such as the Rea project could benefit.

Analyst Coverage

BRI is covered by several mining analysts and has been featured in industry publications such as the Northern Miner over the last year. Cantor Fitzgerald and Rodman & Renshaw (a division of H.C. Wainwright & Co., LLC) provide regular coverage on the Company's activities.

Outlook

Management is very excited about 2016. There are unprecedented acquisition opportunities in the markets today and we are in a position to take full advantage of highly accretive transactions. We continue to evaluate potential acquisitions of select gold projects and with such acquisitions, our goal is to realize on their value when markets improve, through joint venture, sales or advancing exploration and development.

In the longer term, we will continue to be an aggressive explorer and developer with a portfolio of six projects that offer upside potential. The mineral resources for five of these deposits are set out in the table below.

Thank you for being a part of the Brazil Resources family. We welcome your continued participation in the Company. Please call us at 1-855-630-1001, or email info@brazilresources.com with any questions or comments. Please visit www.brazilresources.com to keep current.

Yours truly,

Amir Adnani
Chairman
Brazil Resources Inc.

Mineral Resources

*Gold cut-off for all projects except Whistler, which is gold equivalent cut-off.

** Gold equivalent grade calculation for the Whistler Project resource was based on 75% recovery for gold and silver, 85% recovery for copper, US$990/oz gold, US$15.40/oz silver and US$2.91/lb copper.

Technical Reports

^1"Technical Report and Resource Estimate for the Whistler Project" prepared by Robert J. Morris, M.Sc., P.Geo., Susan C. Bird, P.Eng., and Alan Riles, B.Met., M.AIG, with an effective date of August 15, 2015 and amended and re-stated November 12, 2015.

^2"Technical Report and Resource Estimate on the São Jorge Gold Project, Pará State, Brazil" prepared by Porfirio Rodriguez and Leonardo de Moraes, with an effective date of November 22, 2013.

^3"Technical Report and Resource Estimate on the Cachoeira Property, Pará State, Brazil" prepared by Gregory Z. Mosher, P.Geo., with an effective date of April 17, 2013 and amended and re-stated October 2, 2013. 

⁴"Technical Report on the Rio Novo Gold Project and Resource Estimate on the Jau Prospect, Tapajos Area, Para State, Northern Brazil" prepared by Jim Cuttle and Gary Giroux, with an effective date of November 22, 2013.

⁵"Technical Report on the Boa Vista Project and Resource Estimate on the VG1 Prospect, Tapajos Area, Para State, Northern Brazil" prepared by Jim Cuttle, Gary Giroux and Michael Schmulian, with an effective date of November 22, 2013.

For further information regarding the Company's projects, please refer to each of the technical reports set forth above, copies of which are filed under the Company's profile on SEDAR.

About Brazil Resources Inc.

Brazil Resources Inc. 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 regions of the Americas. Brazil Resources is advancing its Cachoeira and São Jorge Gold Projects located in the State of Pará, northeastern Brazil and its Rea Uranium Project in the western Athabasca Basin in northeast Alberta, Canada.

Paulo Pereira, Brazil Resources' President, has reviewed and approved the technical information contained in this news release. Mr. Pereira holds a Bachelor degree in Geology from Universidade do Amazonas in Brazil, is a qualified person as defined in NI 43-101 and is a member of the Association of Professional Geoscientists of Ontario.

Cautionary Note

Investors are cautioned not to assume that any part or all of mineral deposits in the "indicated" and "Inferred" categories will ever be converted into mineral reserves with demonstrated economic viability or that inferred mineral resources will be converted to the measured and/or indicated categories through further drilling. In addition, the estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies.

Forward Looking Information

This document contains certain forward-looking information that reflect the current views and/or expectations of Brazil Resources with respect to its business and future events, including the potential to identify, execute and successfully integrate additional acquisitions, the Company's ability to realize benefits of its current acquisition strategy, the Company's future exploration plans and the prospects of the Company's existing projects. Forward-looking statements and information are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the markets in which Brazil Resources operates. Investors are cautioned that forward-looking statements and information involve risks and uncertainties, including: the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with Brazil Resources' expectations, accidents, equipment breakdowns, title and permitting matters, labour disputes or other unanticipated difficulties with or interruptions in operations, fluctuating metal prices, the timing of any recovery in resource markets, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, commodity price fluctuations, regulatory restrictions, including environmental regulatory restrictions, or any failure to integrate acquired companies and projects into the Company's existing business as planned. These risks, as well as others, including those set forth in Brazil Resources' filings with Canadian securities regulators, 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. Brazil Resources 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.

| Digg This Article
 -- Published: Wednesday, 27 January 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus

Previous Featured Press Releases