Here's another press release from Tuesday 17 June from Market News Publishing Inc.:
BRW-V : Intention To Acquire The Juruena TO Aripuana RiversProject
17Jun97 Market News Publishing Inc. 97/O6/17 No:0003
BRENNA RESOURCES LTD ("BRW-V;BRNNF-L")
Hans Schwabl, Director, Brenna Resources Ltd. (the "Company") has entered into a letter of intent to acquire the Juruena to Aripuana Rivers Project, a major gold project consisting of 22 contiguous mining concessions covering more than 1,900 square kilometres (approx. 191,888 hectares) in northern Mato Grosso State, Brazil. The geological anomaly known as the Brazilian Shield, the area along which the vast majority of all Brazil's gold is mined, runs through the length of this property. The Juruena to Aripuana Rivers Project is so named because its boundaries spread from the Aripuana River on the east, some 100 km west to the Juruena River. The northern border of the project is the state boundary between Mato Grosso State and Amazonas State and its southern border is the 9th parallel.
The Brazilian Shield and the area around the Juruena to Aripuana Rivers Project have produced significant quantities of gold for several decades, and new discoveries are continuously being made throughout the region. Canadian exploration company Ourominas Minerals, Ltd. has conducted drilling in its 11,500 hectare concession, known as the Juruena project, which lies immediately to the east of The Juruena to Aripuana Rivers Project. There, more than 500,000 ounces of gold were mined between 1987 and 1991. On May 20, 1997, Ourominas released the result of its drilling activity, which showed that they have found significant leads proving another substantial gold find on their concessions.
To the southwest of the Juruena to Aripuana Rivers Project, Canadian Ambrex Mining Corp. operates a 2,000 hectare concession, known as the Aripuana project, just 100 m from an Anglo American project. on February 3, 1997, Ambrex released the results of its drilling program, disclosing sizable quantities of zinc, lead, silver and copper, as well as gold. On May 9, 1997, Ambrex signed a joint venture agreement with Noranda, Inc., which obligates Noranda to spend up to $28,900,000 in further developing the Aripuana project.
In the early 1900's local miners, known as garimperios, gained access to one of the two southernmost concessions of The Juruena to Aripuana Rivers Project and extracted some 500,000 ounces of gold over the course of several years with the permission of the land owner. Six holes were subsequently drilled under the garimperior trench, known as the Filao, and all holes intersected a quartz vein which assayed gold grades between 25.8 grams up to 104 grams per ton and assayed silver grades between 49.7 grams per ton up to 74.1 grams per ton. While encompassing only an insignificant portion of the Juruena to Aripuana Rivers Project, the Filao is a significant target in its own right.
The current owners of The Juruena to Aripuana Rivers Project, corporations controlled by Mr. Antonic Ribeiro, have invested over $20,000,000 in the project over the past years developing the infrastructure of the project to prepare for mining activities. Four airfields have been constructed, a large base camp adjacent to the Filao vein has been built, along with several hundred kilometres of roads. In addition, earth moving equipment, core drilling equipment and other equipment has been acquired and put in place, and a twin engine aircraft has been dedicated to the project. All infrastructure and equipment are in excellent condition.
Brenna has agreed to pay US $5,000,000 to the owners to acquire the concessions, including all the improvements, infrastructure, equipment and aircraft. The sellers shall retain a 50% interest in the net profits of the project, after Brenna has recovered all its expenses, including the acquisition cost. In addition, Brenna shall have the right to acquire a 100% interest in individual concessions, as well as title to the land underlying those concessions in the future at a prearranged price. Mr. Antonio Ribeiro shall retain a working involvement in the project and shall assist with all aspects of Brenna's undertaking in Brazil. Brenna shall be obligated to invest a total of U.S. $2,000,000 per year for three years developing the mineral potential of the western portion of the project, and commencing year two, Brenna shall invest U.S. $2,000,000 per year for three years developing the mineral potential of the eastern portion of the project. Failure to develop the eastern portion of the project shall cause those concessions to be returned to the sellers. In the event Brenna abandons the project after three years of exploration work on the Western portion of the project, then it shall be entitled to a return of $2,500,000 from the sellers.
According to Brenna's President, Bruce Purcell, "the combination of unique factors make this an extraordinary opportunity for the Company. This is a very large, contiguous, mostly virgin area, lying directly on the Brazilian Shield, surrounded by active companies making new discoveries virtually weekly, a complete infrastructure is in place, drill results show a first significant target, we have the active participation of Mr. Ribeiro, a significant and highly respected businessman in Mato Grosso, and the project is in Brazil, the fifth largest gold producer and a country where western business practices and ethics dominate. Needless to say, opportunities like this come very rarely."
Brenna is an exploration and development company specializing in gold and mineral exploration in Brazil, and oil exploration in Russia. The Company's shares trade on the Vancouver Stock Exchange under the symbol BRW.
====================================================================
over and out
Bill |
