Still talking to myself ***BUT***
Production soon and Gold picking up :-)
10 cent play !!!
Brazilian and IMS to expand their joint venture
Brazilian Resources Inc YBZ
Shares issued 58,271,307 Jan 15 2002 close $.100
Thursday Jan 17 2002 News Release
Mr. Daniel Titcomb reports
BRAZILIAN RESOURCES EXPANDS SABARA JOINT VENTURE; DISCUSSES ...
Brazilian Resources and IMS Empreendimentos Ltda. have entered a joint venture for the purpose of developing small and medium-sized mineral properties in Brazil as reported in Stockwatch on May 11, 2001. Initially, Brazilian was to contribute its 100-per-cent-owned Sabara gold property in return for a 90-per-cent interest in the joint venture. IMS was to receive a 10-per-cent interest in the joint venture in return for certain technical work on the property. The joint venture anticipated that IMS could increase its ownership interest with a contribution of a gold, base metal or industrial metal property for development.
A feasibility study is nearing completion, and, based on preliminary results, Brazilian and IMS intend to expand their relationship. IMS will contribute an operational processing plant, processing site, heap leach pads and ancillary equipment appropriate for processing the ore from the Sabara property. IMS will also contribute other orebodies under its control within hauling distance to the plant, and with similar metallurgical characteristics as the Sabara ore.
This expanded agreement is consistent with the joint venture's business strategy to begin gold production during 2002 from existing orebodies in and around the Sabara property, with cash costs under $200 (U.S.) per ounce, with IMS as operator. Subject to the approval of the Canadian Venture Exchange and the directors of both Brazilian and IMS, the asset contribution from IMS will raise its interest in the joint venture to 45 per cent. Results of the feasibility study and a description of the reserves and resources of the new properties will be disclosed in future press releases.
The Sabara property is located in Brazil's most prolific mining camp, known as the Quadrilatero Ferrifero (Iron Quadrangle), which is host to numerous gold deposits in banded iron formations. The concessions cover approximately 6,000 acres abutting AngloGold's Lamego area, 40 kilometres east of Belo Horizonte, Minas Gerais.
IMS is a Brazilian mining company that controls and/or manages several mineral properties in Brazil. One of the principals of IMS, Juvenil T. Felix, is a mining engineer with over 35 years of experience, including a long career with Anglo-American companies.
Brazilian has retained Ivan C. Machado, principal of TechnoMine Services, as its technical director for the Sabara joint venture. Mr. Machado has extensive experience in the Quadrilatero Ferrifero.
The following is a brief update on Brazilian's other business activities.
Mineral properties
In addition to the Sabara property, Brazilian controls a 70-per-cent interest in the 20,862 acre Santa Maria property, which includes an open pit/heap leach gold mine located in the Brazilian portion of the Guyana shield. The mine, presently inactive, produced over 41,000 ounces of gold in the mid-1990s. Approximately 10 km north of Santa Maria, along strike of the same mineralized shear zone, AngloGold is currently completing a feasibility study on its Amapari project, where announced gold resources exceed two million ounces. This area of the Guyana shield is an area of proven low-cost gold production.
Brazilian is currently re-evaluating previous studies regarding recommencement of production at Santa Maria, given the devaluation of the Brazilian currency against the American dollar over the past year, as well as renewed interest in gold mining by investment professionals.
Energy
During 2001, Brazilian focused on obtaining various regulatory approvals for its proposed 28 megawatt hydroelectric plant, SAo Domingos II (SD II), and preparing the project for sale. Brazilian is currently in late stage negotiations with potential purchasers, and expects to close a sale during the first quarter of 2002.
Brazilian is also pursuing the development of a 12 MW greenfield hydro site adjacent to SD II. A positive prefeasibility study describes this site sending water to the SD II powerhouse through a tunnel. Brazilian has previously announced the availability of financing for the acquisition and expansion of several small operating hydroelectric plants. These projects are currently on hold, pending resolution of the sale of SD II and the purchaser's intentions for the adjacent greenfield site.
Telecommunications
During 2000, the company entered joint venture agreements to expand and develop fibre optic networks and regional telephone companies in Brazil. In December, 2000, the company announced that it had consolidated all of its telecom opportunities into an interest in a company which controls various rights for development of fibre optic and twisted cable services in the highest density telecom markets of Brazil. These "last mile" development rights remain in effect; however, the telecom company remains unfinanced due to market conditions. Sustained weakness in this sector makes it unlikely Brazilian will realize significant value from its telecom assets.
Irradiation
In June, 2001, Brazilian announced its intent to develop gamma ray ionization facilities in Brazil and export treated food products to North America and Europe. The initial business plan calls for development of five cobalt food irradiation plants in Brazil's major food producing areas. Management expected to close a financing for the development of the first irradiator during late September; however, the events of Sept. 11, 2001, delayed the financing. Recently, management has been investigating expansion of the business plan to include one or more units to be located in the United States, with the capability to irradiate diverse products such as mail, food and medical equipment. |
