Highlights:
- The district-scale Whistler Project is a 170 square kilometre
land package that hosts the Whistler, Raintree West and Island
Mountain porphyry deposits as well as several porphyry
targets;
- A new resource estimate on the Raintree West deposit provides
for a total inferred resource of 1.991 Moz gold equivalent
comprised of 1.428 Moz gold equivalent (51.76 Mt grading
0.68 g/t gold, 3.74 g/t silver, 0.10 % copper or 0.86 g/t gold
equivalent at a 0.6 g/t gold equivalent cut-off) below the 100
metre elevation (Zone A) and 0.563 Moz gold equivalent
(31.68 Mt grading 0.40 g/t gold, 5.39 g/t silver, 0.06 % copper or
0.55 g/t gold equivalent at a 0.3 g/t gold equivalent cut-off)
above the 250 metre elevation (Zone B);
- The Raintreee West resource estimate is in addition to the
previously reported resource estimates for the Whistler and Island
Mountain deposits. The combined resource for the three deposits is
2.797 Moz gold equivalent in the indicated category
(110.28 Mt grading 0.50 g/t gold, 1.72 g/t silver, 0.14 % copper or
0.79 g/t gold equivalent) and 6.731 Moz gold
equivalent (311.26 Mt grading 0.47 g/t gold, 2.26 g/t silver,
0.11 % copper or 0.68 g/t gold equivalent) in the inferred
category;
- Over C$50 million spent on prior
exploration work on the Whistler project, which included
approximately 70,000 metres of diamond drilling with 7,078 metres
(14 holes) of this total completed at the Raintree West deposit;
and
- The deposits are open in several directions and future drill
programs will focus on delineating higher grade, near-surface
zones, adding to these existing resources and testing adjacent
porphyry targets.
VANCOUVER, May 17, 2016 /CNW/ - Brazil Resources Inc. (the
"Company" or "Brazil Resources") (TSX-V: BRI; OTCQX: BRIZF) is
pleased to announce the results of a National Instrument 43-101
("NI 43-101") mineral resource estimate for the Raintree West
deposit, one of several porphyry centers identified on the Whistler
Project, Alaska. The 100%-owned
district-scale Whistler Project (170 sq km) is located 150
kilometres northwest of Anchorage,
Alaska.
Garnet Dawson, CEO, stated:
"We are pleased to report this maiden NI 43-101 resource
estimate for the Raintree West deposit, which builds on the
multi-million ounce gold resource reported over the last year on
the Whistler Project. This estimate increases BRI's indicated
resource to 3.2 Moz gold (4.2 Moz gold equivalent) and our inferred
resource to 7.0 Moz gold (9.1 Moz gold equivalent; Table 4). In
conjunction with advancing our existing project portfolio, the
Company continues to evaluate resource-stage projects in the
Americas for potential acquisition."
Raintree West Resource Estimate
Brazil Resources engaged Giroux Consulting Ltd. to prepare an
independent NI 43-101 technical report for the Whistler Project,
including the first-time resource estimate on the Raintree West
deposit. The resource estimates for the inferred resource at
various cut-off grades are shown in Tables 1 and 2, respectively.
The technical report documenting the procedures and results of this
estimate will be filed on SEDAR in due time.
Table 1: Raintree West NI 43-101 inferred resource estimate
below 100 metre elevation (Zone A).
Cut-off
AuEq
(g/t)
|
Tonnes
(Mt)
|
Grade
|
Contained
Metal
|
Au
(g/t)
|
Ag
(g/t)
|
Cu
(%)
|
AuEq
(g/t)
|
Au
(Moz)
|
Ag
(Moz)
|
Cu
(Mlbs)
|
AuEq
(Moz)
|
0.50
|
64,460,000
|
0.63
|
3.76
|
0.09
|
0.80
|
1.295
|
7.792
|
127.92
|
1.652
|
0.55
|
57,470,000
|
0.65
|
3.77
|
0.10
|
0.83
|
1.208
|
6.966
|
126.72
|
1.534
|
0.60
|
51,760,000
|
0.68
|
3.74
|
0.10
|
0.86
|
1.130
|
6.224
|
114.13
|
1.428
|
0.65
|
46,360,000
|
0.70
|
3.71
|
0.10
|
0.89
|
1.048
|
5.530
|
102.22
|
1.321
|
0.70
|
40,780,000
|
0.73
|
3.70
|
0.11
|
0.91
|
0.954
|
4.851
|
98.91
|
1.198
|
0.75
|
35,290,000
|
0.75
|
3.72
|
0.11
|
0.94
|
0.855
|
4.221
|
85.60
|
1.071
|
0.80
|
29,750,000
|
0.78
|
3.76
|
0.11
|
0.98
|
0.746
|
3.596
|
72.16
|
0.933
|
Table 2: Raintree West NI 43-101 inferred resource estimate
above 250 metre elevation (Zone B).
Cut-off
AuEq
(g/t)
|
Tonnes
(Mt)
|
Grade
|
Contained
Metal
|
Au
(g/t)
|
Ag
(g/t)
|
Cu
(%)
|
AuEq
(g/t)
|
Au
(Moz)
|
Ag
(Moz)
|
Cu
(Mlbs)
|
AuEq
(Moz)
|
0.25
|
38,620,000
|
0.36
|
5.09
|
0.05
|
0.50
|
0.452
|
6.320
|
42.58
|
0.625
|
0.30
|
31,680,000
|
0.40
|
5.39
|
0.06
|
0.55
|
0.409
|
5.490
|
41.91
|
0.563
|
0.35
|
26,980,000
|
0.43
|
5.66
|
0.07
|
0.59
|
0.376
|
4.910
|
41.64
|
0.514
|
0.40
|
22,940,000
|
0.46
|
5.93
|
0.07
|
0.63
|
0.341
|
4.374
|
35.41
|
0.465
|
0.45
|
18,920,000
|
0.50
|
6.21
|
0.07
|
0.68
|
0.303
|
3.777
|
29.20
|
0.411
|
0.50
|
15,340,000
|
0.54
|
6.45
|
0.08
|
0.72
|
0.264
|
3.181
|
27.06
|
0.356
|
0.55
|
12,310,000
|
0.58
|
6.67
|
0.08
|
0.77
|
0.228
|
2.640
|
21.71
|
0.305
|
0.60
|
9,800,000
|
0.62
|
6.85
|
0.08
|
0.82
|
0.196
|
2.158
|
17.29
|
0.259
|
0.65
|
7,840,000
|
0.67
|
7.02
|
0.09
|
0.87
|
0.168
|
1.769
|
15.56
|
0.220
|
0.70
|
6,210,000
|
0.71
|
7.17
|
0.09
|
0.92
|
0.142
|
1.432
|
12.32
|
0.184
|
0.75
|
4,780,000
|
0.77
|
7.24
|
0.09
|
0.98
|
0.118
|
1.113
|
9.49
|
0.151
|
0.80
|
3,650,000
|
0.83
|
7.22
|
0.09
|
1.05
|
0.097
|
0.847
|
7.24
|
0.123
|
Table 1 and 2 Notes:
- Gold-equivalent grade assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 75% for gold,
85% for copper and 75% for silver.
- A 0.60 g/t gold equivalent cut-off has been highlighted for
material below the 100 metre elevation (Zone A) as a possible block
cave cut-off based on New Afton Mines in southern British Columbia, while a 0.30 g/t gold
equivalent cut-off has been highlighted for material above 250
metre elevation (Zone B) based on the nearby Whistler deposit.
- Totals may not represent the sum of the parts due to
rounding.
- The Mineral Resources have been prepared by Giroux Consulting
Ltd. in conformity with "CIM Definition Standards for Mineral
Resources and Mineral Reserves 2014
Table 3: Whistler, Island Mountain and Raintree West NI 43-101
resource estimates, Whistler Project.
Deposit
|
Class.
|
Cut-off
|
Tonnes
|
Grade
|
Contained
Metal
|
AuEq.
(g/t)
|
(Mt)
|
Au
(g/t)
|
Ag
(g/t)
|
Cu
(%)
|
AuEq.
(g/t)
|
Au
(Moz)
|
Ag
(Moz)
|
Cu
(Mlb)
|
Au
Eq.
(Moz)
|
Whistler
|
Indicated
|
0.3
|
79.20
|
0.51
|
1.97
|
0.17
|
0.88
|
1.280
|
5.030
|
302.00
|
2.25
|
IM
|
Indicated
|
0.3
|
31.080
|
0.49
|
1.10
|
0.06
|
0.55
|
0.49
|
1.10
|
41.12
|
0.55
|
|
|
|
110.280
|
0.50
|
1.72
|
0.14
|
0.79
|
1.77
|
6.13
|
343.12
|
2.80
|
|
|
|
|
|
|
|
|
|
|
|
|
Whistler
|
Inferred
|
0.3
|
145.80
|
0.40
|
1.75
|
0.15
|
0.73
|
1.850
|
8.210
|
467.00
|
3.350
|
IM
|
Inferred
|
0.3
|
82.020
|
0.47
|
1.02
|
0.05
|
0.53
|
1.24
|
2.69
|
90.43
|
1.39
|
RW (Zone
A)
|
Inferred
|
0.6
|
51.760
|
0.68
|
3.74
|
0.10
|
0.86
|
1.13
|
6.22
|
114.13
|
1.43
|
RW (Zone
B)
|
Inferred
|
0.3
|
31.680
|
0.40
|
5.39
|
0.06
|
0.55
|
0.41
|
5.49
|
41.91
|
0.56
|
|
|
|
311.260
|
0.47
|
2.26
|
0.11
|
0.68
|
4.63
|
22.61
|
713.47
|
6.73
|
Table 3 Notes:
- Island Mountain abbreviated to "IM" and Raintree West
abbreviated to "RW".
- Gold equivalent grade for the Whistler resource assumes metal
prices of US$990/oz gold,
US$15.40/oz silver and US$2.91/lb copper.
- Gold equivalent grade for the Island Mountain resource assumes
metal prices of US$1,250/oz gold,
US$16.50/oz silver and US$2.10/lb copper and recoveries of 90% for gold
(cyanide), 80% for copper (flotation) and 25% silver (recovery in
copper concentrate).
- The Island Mountain resource estimate was previously announced
in a News Release on April 18,
2016.
- Gold equivalent for the Raintree West resource assumes metal
prices of US$1,250/oz gold,
US$16.50/oz silver and US$2.10/lb copper and recoveries of 75% for gold,
85% for copper and 75% for silver.
- Totals may not represent the sum of the parts due to
rounding.
- The Mineral Resources for the Whistler deposit have been
prepared by Moose Mountain Technical Services in conformity with
"CIM Definition Standards for Mineral Resources and Mineral
Reserves 2014". The resource estimate is contained in the amended
and restated technical report titled "NI 43-101 Resource Estimate
for the Whistler Project" authored by Robert J. Morris, M.Sc., P.Geo., Susan C. Bird, P.Eng., and Alan Riles, B.Met, M.AIG, who are each qualified
persons within the meaning of NI 43-101 and independent of the
Company with an effective date of August 15,
2015 (amended and restated as of November 12, 2015).
- The Mineral Resources for the Island Mountain and Raintree West
deposits have been prepared by Giroux Consulting Ltd. in conformity
with "CIM Definition Standards for Mineral Resources and Mineral
Reserves 2014".
The Raintree West deposit is one of several porphyry centers
identified on the Whistler Project (Fig. 1). The deposit is
located 1500 metres east of the Whistler deposit and has been
drilled over a strike length of 500 metres and to a depth of 700
metres; the deposit is up to 400 metres in width. The deposit is
open along strike to the north and south, and at depth. Gold-copper
mineralization is associated with quartz + magnetite stockwork
zones hosted in potassic altered diorite intrusive rocks.
The Raintree West deposit was modelled on a series of east-west
cross-sections and a grade shell (0.1 g/t AuEq) representing the
mineralization was constructed to constrain the resource estimate.
Fourteen diamond drill holes totaling 7,078 metres were used to
define the model. Erratic high grade outliers for gold, silver and
copper were capped within the mineralized and waste solids.
Composites 5 metres in length were formed within each of the
domains that honoured the domain boundaries. Variography was used
to model the grade continuity and to determine the search ellipse
orientations and dimensions for interpolation. Ordinary kriging was
used to estimate gold, silver and copper into blocks measuring 10 x
10 x 10 metres in dimension. A total of 39 samples within the
mineralized solid had specific gravity measurements, which were
used to convert volumes to tonnes. The blocks were classified as
Inferred based on the limited amount of drilling. For the near
surface mineralization above 250 m elevation (Zone B), a 0.30 g/t
gold equivalent cut-off grade was chosen as a possible open pit
cut-off based on studies completed at the nearby Whistler deposit.
For the deeper mineralization below 100 m elevation (Zone A), a
0.60 g/t gold equivalent cut-off grade was chosen as a possible
block cave cut-off based on the New Afton mine in British Columbia that is currently in
production and using a similar mining method. Validation of the
model was completed by comparison of the block model and drill hole
grades by visual inspections in section and plan across the
deposit. There are no known legal, political, environmental or
other risks that could materially affect the potential development
of the mineral resources.
An updated technical report on the Whistler Project including
the new resource estimates on the Raintree West and Island Mountain
deposit will be filed on SEDAR in due course.
Quality Control – Quality Assurance Program
The above resource estimate was based on drill programs
completed by previous operators that incorporated control samples
including blanks, duplicates and standards as part of their Quality
Control – Quality Assurance Program. The control samples from these
programs have been reviewed and verified by the Qualified Persons
and the assay results were deemed suitable for resource
estimation.
Qualified Person Statement
The resource estimate disclosed herein was prepared for Brazil
Resources by Gary Giroux, MASc.,
P.Eng. of Giroux Consultants Ltd, who is a Qualified Persons as
defined in NI 43-101, is independent of the Company and has
reviewed and approved the disclosure regarding the Raintree West
resource estimate.
A technical report respecting the above resource estimate will
be filed under the Company's profile on SEDAR in due course. There
is no new material scientific or technical information respecting
the Whistler Project since the effective date of the resource
estimate.
Paulo Pereira, Brazil Resources'
President, has reviewed and approved the technical information
contained in this news release. Mr. Pereira holds a bachelors
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.
Table 4: Brazil Resources Inc. Mineral Resource Statement
(May 2016).
|
|
|
|
|
|
|
|
|
|
|
Project
|
Cut-off
|
Tonnes
|
Gold
|
Silver
|
Copper
|
Gold
Eq
|
Gold
|
Silver
|
Copper
|
Gold
Eq
|
|
(g/t)
|
(Mt)
|
(g/t)
|
(g/t)
|
(%)
|
(g/t)
|
(Moz)
|
(Moz)
|
(Mlbs)
|
(Moz)
|
Sao Jorge
|
0.3
|
14.420
|
1.54
|
-
|
-
|
1.54
|
0.715
|
-
|
-
|
0.715
|
Cachoeira
|
0.35
|
17.470
|
1.23
|
-
|
-
|
1.23
|
0.692
|
-
|
-
|
0.692
|
Whistler
|
0.3
|
79.200
|
0.51
|
1.97
|
0.17
|
0.88
|
1.280
|
5.03
|
302.00
|
2.250
|
IM
|
0.3
|
31.080
|
0.49
|
1.10
|
0.06
|
0.55
|
0.485
|
1.10
|
41.12
|
0.547
|
Total
|
|
142.170
|
0.70
|
1.34
|
0.11
|
0.92
|
3.172
|
6.13
|
343.12
|
4.204
|
|
|
|
|
|
|
|
|
|
|
|
Sao Jorge
|
0.3
|
28.190
|
1.14
|
-
|
-
|
1.14
|
1.035
|
-
|
-
|
1.035
|
Cachoeira
|
0.35
|
15.667
|
1.07
|
-
|
-
|
1.07
|
0.538
|
-
|
-
|
0.538
|
Boa Vista
|
0.5
|
8.470
|
1.23
|
-
|
-
|
1.23
|
0.336
|
-
|
-
|
0.336
|
Surubim
|
0.3
|
19.440
|
0.81
|
-
|
-
|
0.81
|
0.503
|
-
|
-
|
0.503
|
Whistler
|
0.3
|
145.800
|
0.40
|
1.75
|
0.15
|
0.73
|
1.850
|
8.21
|
467.00
|
3.350
|
IM
|
0.3
|
82.020
|
0.47
|
1.02
|
0.05
|
0.53
|
1.237
|
2.69
|
90.43
|
1.390
|
RW
(shallow)
|
0.3
|
31.680
|
0.40
|
5.39
|
0.06
|
0.55
|
0.409
|
5.49
|
41.91
|
0.563
|
RW (deep)
|
0.6
|
51.760
|
0.68
|
3.74
|
0.10
|
0.86
|
1.130
|
6.22
|
114.13
|
1.428
|
Total
|
|
383.027
|
0.57
|
1.84
|
0.09
|
0.75
|
7.038
|
22.61
|
713.47
|
9.143
|
Table 4 Notes:
- Gold cut-off for all projects except for Whistler, Raintree
West and Island Mountain, which is gold equivalent cut-off.
- Gold equivalent grade for the Whistler resource assumes metal
prices of US$990/oz gold,
US$15.40/oz silver and US$2.91/lb copper and recoveries of 75% for gold
and silver and 85% for copper.
- Gold equivalent grade for the Island Mountain resource assumes
metal prices of US$1,250/oz gold,
US$16.50/oz silver and US$2.10/lb copper and recoveries of 90% for gold
(cyanide), 80% for copper (flotation) and 25% silver (recovery in
copper concentrate).
- Gold equivalent for the Raintree West resource assumes metal
prices of US$1,250/oz gold,
US$16.50/oz silver and US$2.10/lb copper and recoveries of 75% for gold,
85% for copper and 75% for silver.
- "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.
- "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.
- "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.
- "Technical Report on the Rio Novo Gold Project and Resource
Estimate on the Jau Prospect, Tapajos Area, Para State,
Northern Brazil" (Surubim Project)
prepared by Jim Cuttle and Gary
Giroux, with an effective date of November 22, 2013.
- "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.
- An updated technical report on the Whistler Project including
the Whistler, Raintree West and Island Mountain resource estimate
will be filed on SEDAR in due course.
- 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
focused on the acquisition and development of gold projects in
Brazil 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, its Whistler Gold-Copper
Project located in the state of Alaska, United
States of America, and its Rea Uranium Project in the
western Athabasca Basin in
northeast Alberta, Canada.
Cautionary Note
Investors are cautioned not to assume that any part or all of
the 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 Statements
This document contains certain forward-looking statements
that reflect the current views and/or expectations of Brazil
Resources with respect to its business and future events, including
statements regarding the estimation of mineral reserves and the
Company's expectations respecting the Whistler Project.
Forward-looking statements 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 all forward-looking statements 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, 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.
SOURCE Brazil Resources Inc.