Strong Preliminary Result for New Diamond and Gold Area
BELO HORIZONTE, BRAZIL--(Marketwired - Apr 27, 2015) - Brazil Minerals Inc. (OTCBB: BMIX) (the "Company" or "BMIX") announced today the preliminary result for the initial drilling of a new dry area for diamonds and gold, utilizing the Company's own Banka 4-inch drill. The first exploration hole in such area yielded a sizeable layer of "starched quartz" gravel, known locally to be the richest type for diamonds and gold. In the small sample collected, both diamond and gold presence was seen by the naked eye.
J. Francescatto, Chief Geologist at BMIX, summarized this news as follows, "I have over 25 years of experience in alluvial exploration and this quality of result by a Banka 4-inch drill is rarely seen."
In the hole drilled, the initial layer observed was composed of white sand, an excellent material for construction. The next layer was gravel with a large amount of satellite mineral markers for diamond, including many tourmalines and kyanites. Further below, a layer of starched quartz gravel was identified, which yielded diamond and gold.
The mineral rights area where this drilling took place has hundreds of acres, and is situated along the margins of the Jequitinhonha River. It is a dry location, amenable to a potential program of extraction by open surface excavation and removal and transport of the white gravel to our diamond and gold processing and recovery plant. BMIX is pursuing a focused research campaign of a few drilling holes and expects such effort to cost less than $10,000. The Company will not pursue an extensive study of this mineral rights area and there is no assurance that these preliminary findings will be replicable to other locations in this area or that a material amount of minerals will be found in the area.
In parallel, BMIX is currently embarked on a program involving commercialization of certain industrialized sand products. The aim is to increase the generation of steady cash flows to pay for the Company's current and future expenses, including mining costs such as diesel fuel for both earth-moving machinery and the plant. BMIX will soon provide an update on its industrialized sand program.
About Brazil Minerals, Inc.
Brazil Minerals Inc. (OTCBB: BMIX) is a U.S. publicly-traded company with current revenues from sales of rough and polished diamonds, gold and sand. Our intention is to continue to grow and become a premier diversified and profitable company focused on Brazil. We believe that our team is our main strength. Our team combines over 100 years of Brazilian business expertise and American experience in finance, private equity and venture capital.
BMIX owns 100% of MDB, a Brazilian producer and seller of polished and rough diamonds, gold bars and industrial-use sand. MDB operates a fully-operational mining concession with the largest alluvial processing plant for diamonds and gold in Latin America and has the Brazilian permit to export its production.
BMIX also owns 50% of RST Recursos Minerais, Ltda. ("RST"), a Brazilian company with 10 mining concessions and 12 other mineral rights for diamond and gold. A number of the RST areas are located near MDB's plant, in the Jequitinhonha River valley, a well-known area for diamonds and gold for over two centuries.
Our goal is to become an attractive and liquid alternative for investment in Brazil, the 6th largest global economy. More information on BMIX can be found at www.brazil-minerals.com.
Safe Harbor Statement
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions, geopolitical events and regulatory changes, availability of capital, BMIX's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Cautionary note regarding estimates of Indicated and Inferred Mineral Resources of Diamonds and Gold as found in MDB's NI 43-101 Technical Reports.
We advise U.S. investors that while these terms and amounts are recognized by Canadian regulations, the U.S. Securities and Exchange Commission ("SEC") does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves as defined by the U.S.'s Industry Guide 7.
Cautionary note regarding estimates of Mineral Reserves of Diamonds and Gold as found in MDB's Bankable Feasibility Study.
We advise U.S. investors that while these terms and amounts are recognized by Brazilian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into mineral reserves as defined by the U.S.'s Industry Guide 7.
Cautionary note regarding estimates of Volume and Weight of Sand as found in MDB's studies filed with the local Brazilian regulatory agencies.
We advise U.S. investors that while sand volume and weight terms and amounts as filed in Brazil are recognized by Brazilian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part of such are not considered mineral reserves as defined by the U.S.'s Industry Guide 7.
Contact
Contact:
Marc Fogassa
(213) 590-2500
Email Contact
www.brazil-minerals.com