Brazil Minerals, Inc. Completes First Phase of Geological Assessment of New Diamond & Gold Area
BELO HORIZONTE, BRAZIL--(Marketwired - May 26, 2015) - Brazil Minerals Inc. (OTCBB: BMIX) (the "Company" or "BMIX") announced today that its Senior Geologist, J. Francescatto, and his team had successfully concluded the first phase of geological assessment in a dry area for diamonds and gold near a margin of the Jequitinhonha River in the State of Minas Gerais in Brazil. In total, six holes were drilled, each spaced by 50 meters, and with an average depth of 12.6 meters. The distance between the two outermost holes was 250 meters. All six holes showed presence of varying depths of commercially-viable gravel containing diamonds and gold. In our geologist's opinion, there is continuity of this type of gravel layer within the entirety of the line drilled. In relative terms, this researched area is small compared to the total surface area of this mineral right, which measures 5.3 million square meters or 1,310 acres.
As noted above and in prior communications, we are performing focused and relatively inexpensive research to determine ideal locations for future mining pits. We own our own drilling equipment and have our own field team, which mitigates cost substantially. We own or control 11 mining concessions and 17 other mineral rights, all in Brazil. Although the primary objective of this effort is to find locations with the highest quality of diamondiferous gravel, it should be noted that gold essentially always occurs together with diamonds in these deposits. The relative concentrations between diamonds and gold vary widely depending on local geological characteristics.
Diamonds are mined worldwide in two ways. The first method is by exploration of kimberlites, the primary geological formations containing diamonds. By far, the best kimberlites in Brazil are located in the State of Rondônia. The second method of obtaining diamonds is from alluvial sources, diamondiferous gravel beds situated near rivers (note that current environmental laws in Brazil do not permit mining within 100 meters of the medium axis of a river bed). Alluvial placers are secondary sources of diamonds and orders of magnitude cheaper to mine than kimberlites. All of our current mineral rights are for the alluvial mining of diamonds. The best alluvial mines in Brazil are located in the State of Minas Gerais, where our current mineral rights for diamonds are located. The Jequitinhonha River borders many of our mineral rights, and is well known for its high quality, sought-after colorless gems. Other rivers in Minas Gerais produce a combination of color and colorless gems.
Historically, 97% of diamonds retrieved by BMIX in its properties are gem-type diamonds, and only 3% are industrial-type diamonds. We have sold our own polished diamonds to jewelry stores without the need to have them graded. For other buyers, we have certified and graded our polished diamonds at the Gemological Institute of America ("GIA"). All of our diamonds submitted to GIA have been certificated and returned graded.
While the results described today are strong, and have defined potential initial mining locales, we cannot make any assumptions about the extent to which similar results will be seen for the remainder of this large mineral area, or that substantial and prolonged revenues from diamonds or gold will be extracted from this area.
About Brazil Minerals, Inc.
Brazil Minerals Inc. (OTCBB: BMIX) is a U.S. publicly-traded company with revenues from sales of rough and polished diamonds, gold, and sand. Our goal is to become a diversified and profitable company, and an attractive and liquid alternative for investment in Brazil, one of the largest global economies. Our team combines 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.
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