Cosigo Resources Ltd. Signs Letter of Intent with Native Communities In Northwestern Brazil
Vancouver, British Columbia, December 19, 2011 -- Cosigo Resources Ltd. (TSXV: CSG) today provided an update on the Company's activities in northwestern Brazil.
Highlights of the update include:
• Letter of Intent signed with communities and local authorities in native areas of northwestern Brazil to seek approvals for and to start a pilot project with the objective of developing mining opportunities
• Area covered by the Letter of Intent hosts multiple historic gold mining areas with Taraira Gold Belt geology similar to that of Cosigo's Machado project on the Colombian side of the border
• Upon receipt of Federal approvals for the pilot project, Cosigo will have the option to enter into a joint venture with up to a 75% interest on prospects identified by drilling in the area covered by the Letter of Intent
"We have completed the first steps toward a joint venture with the native peoples of this highly prospective region of Brazil. This pilot project stands to lead to successful mineral development, where native communities can take a leading role in their own economic future while maintaining environmental integrity", said Dennis W. Milburn, President and CEO of Cosigo. "Together with the communities we will now work to bring the project to fruition."
On December 2, 2011 the Company signed a Letter of Intent ("LOI") with the leaders of several native communities. Parties to the LOI include the Jose Mormes, Rio Tiquie and Baniwa nations, as well as representatives of the municipalities of Japura and Sao Gabriel de Cachoeira (collectively the "Communities"). The LOI was also signed by representatives of the Brazilian department of native affairs (FUNAI) and by the Federation of Indigenous Organizations of Rio Negro (FOIRN). The objective of the LOI is to initiate a pilot project to investigate mineral potential and develop mining opportunities in the Isana River, Pari Cachoeira, Tiquie River and Traira Serrania regions of the northwestern Amazon Province of Brazil. These regions close to the Colombian border are hosts to large areas of geology similar to that of Cosigo's Machado project in Colombia. According to the LOI, Cosigo has the option to enter into a mining venture where it has up to 75% interest on prospects identified by drilling. The Communities will retain a 25% interest in such prospects.
Prior to executing the LOI, Cosigo, the Communities and the Secretary of native affairs for the State of Amazonas had signed an initial Memorandum of Understanding expressing the desire of all parties to further the investigation of the mineral potential in the region. Currently, the Brazilian Federal Authorities do not authorize mining projects within native areas. Discussions are ongoing between native groups and Federal Authorities to establish, which areas could be developed once Federal authorization comes forth. |
