Here is the proof.....
PRESS RELEASE
January 7, 2003 2003-01
Concord, New Hampshire YBZ – TSXV
BRAZILIAN RESOURCES DECIDES TO COMMENCE GOLD PRODUCTION IMMEDIATELY
Brazilian Resources, Inc. (“BRAZILIAN”) has received a feasibility study on its Sabará gold project showing strongly favorable economic indicators from mining Zone B reserves. Jaguar Mining Inc. (“Jaguar”), a New Brunswick corporation, is a joint venture formed by BRAZILIAN and IMS Empreendimentos Ltda. (“IMS”) to operate multiple gold projects.
The study considers only the first phase of the Sabará project, which entails open pit mining of Zone B and the utilization of an existing Crushing/Heap Leach ADR-CIC (Adsorption/Desorption/Recovery – Carbon in Column) gold processing plant located 36 km (by truck) from the mining area. The main criteria and results of the project financial analysis are summarized below:
 Assumed gold price US$ 300/oz
 ROM (total) 595,630 t
 ROM grade 3.22 g/t
 Ore throughputs 1000 tpd ROM (300,000 tpy: 300 d/year)
 Gold production (total) 51,186 oz Au
 Initial project life (Zone B only) 2.5 years (production)
 Metallurgical recovery 83%
 IRR (unleveraged, after tax) 199.9%
 Operating cost US$ 158/oz
 Average cash cost US$ 187/oz
The feasibility study report was independently prepared by Ivan C. Machado, P. Eng., P.E, Principal of Salt Lake City-based TechnoMine Services, LLC. Mr. Machado has extensive experience in the Quadrilátero Ferrífero, and serves as BRAZILIAN’s Qualified Person in accordance with NI 43-101. The complete technical report will be filed on SEDAR.
The BRAZILIAN/IMS joint venture was formed with the purpose of developing small and medium-sized mineral properties in Brazil that have well-defined gold resources and/or reserves with upside exploration potential. Based upon positive results from the feasibility study on the Sabará gold project, Jaguar has decided to commence production, and is currently developing the mine site and refurbishing the 1,000 tonne per day Caeté Plant in preparation for processing ore in the first quarter of 2003. Including ramp-up, the first year of Sabará production is expected to yield approximately 22,000 oz Au at an average cash cost of US$187/oz. At full capacity, annual production should yield approximately 26,000 oz Au.
Jaguar is in late-stage negotiations to acquire nearby ore bodies with well-defined gold resources and/or reserves, some of which (oxides) are amenable to processing at the Caeté plant. In addition, Jaguar expects to drill-off indicated resources at its Sabará Zone A and Zone 10, with the intent of increasing the resource base and determining new mineable reserves via a complementary feasibility study.
Jaguar recently engaged Kingsdale Capital Corporation of Toronto to manage its capital program. The program includes raising US$1.9 million for use to commence mining operations at Sabará. Uses of capital include CIC plant refurbishing, upgrading and increasing resources and meeting corporate needs. Jaguar has canceled previously disclosed agreements with IBK Capital Corp. and PL Internet.
Jaguar anticipates raising the US$1.9 million through a two-tranche private placement. The first tranche of US$400,000 is expected to consist of 800,000 special warrants priced at US$0.50 which may be exchanged for no additional consideration into units, upon Jaguar being listed for trading on a recognized exchange. Each unit consists of one common share and one-half common share purchase warrant. Each whole purchase warrant may be exercised at a price of US$0.75 for two years after Jaguar becomes listed. The second tranche of US$1.5 million will be priced after Jaguar executes certain agreements adding properties to its portfolio. Before this private placement, Jaguar had 10,280,000 common shares outstanding, of which BRAZILIAN owned 53.5%.
IMS is a Brazilian mining company that controls and/or manages several mines and mineral properties in Brazil. One of the principals of IMS, Juvenil T. Felix, Engo., is a mining engineer with over 35 years of experience, including a long career with Anglo American companies.
BRAZILIAN is a resource and infrastructure development company quoted on Tier 3 of the TSX Venture Exchange under the symbol “YBZ”, with 58,271,307 common shares outstanding. BRAZILIAN currently has business interests in mining, energy and gamma ray ionization, and is using relationships developed during its eight-year history in Brazil to locate other infrastructure opportunities.
For further information, please contact:
Daniel Titcomb, President or Telephone: 603-224-4800
Jeffrey Kirchhoff, Chief Financial Officer Facsimile: 603-228-8045
Brazilian Resources, Inc. E-mail: info@brazilianresources.com
48 Pleasant Street Website: www.brazilianresources.com
Concord, NH 03301 Listing: YBZ – TSXV
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties, which could cause actual results to vary considerably from these statements. Readers are cautioned not to put undue reliance on forward-looking statements.
BRAZILIAN’s and Jaguar’s securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or resold in the United States or to a U.S. person absent registration or an applicable exemption from the registration requirements. |
