Disclosure NewswireTMiCrowdNewswire - Aug 29, 2016
PASADENA, CA – Brazil Minerals, Inc. (OTC: BMIX) (the “Company” or “BMIX”) today announced that Jupiter Gold Corporation (“Jupiter”), its gold-focused subsidiary, had obtained a mineral claim for gold covering 773 acres in the municipality of Paracatu, in the state of Minas Gerais. Paracatu is where the largest gold mine in Brazil, named Morro do Ouro, is located. Morro de Ouro is an open-pit mine owned by global firm Kinross Gold, with 2015 reported proven and probable reserves of 9.645 million ounces of gold and annual production of 477,622 ounces of gold. The obtained claim is located 350 miles from BMIX’s alluvial gold and diamond operations and was listed in the Company’s recently filed Form 10-Q for the second quarter of 2016.
Paracatu was settled in the early 17th century by pioneers searching for gold, and it has enjoyed mining since that time. Gold production in the Paracatu region has usually been from alluvial deposits, mainly near a river stream called Corrego do Ouro (also called Corrego do Rico). Expert believe that this watercourse, which starts near Morro do Ouro mine, has, for millions of years, eroded rock and transported gold for the formation of alluvial deposits downstream.
A simple, alluvial gold-producing operation using centrifuges, located along Corrego do Ouro and downstream from Morro do Ouro mine, was recently offered to Jupiter for $12 million Brazilian reais (approximately $3.75 million U.S. dollars). Jupiter declined this opportunity and, instead, spent time investigating greenfield situations nearby. It identified a claim in what it considers a more desirable location along Corrego do Ouro, located upstream from this operation for sale and therefore closer to Morro do Ouro. While research needs to be performed for confirmation, a mining expert hired by Jupiter has stated that it is likely that the claim obtained could lend itself to a program of alluvial gold recovery based on the use of centrifuges, a methodology where internal experience is being developed.
BMIX has stated in prior releases that mineral-focused subsidiaries allow needed investment for projects without share dilution of the parent Company. BMIX intends to maintain stock ownership in each subsidiary and royalties in each project.
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTC: BMIX) is a producer of diamonds, gold, sand, and industrialized mortar. Through subsidiaries, consolidated in our financial statements, we have 38 mineral rights for gold, diamonds, manganese, and sand, including 10 mining concessions for gold and diamonds, the highest level of right to mine in Brazil. More information on BMIX is atwww.brazil-minerals.com.
Safe Harbor Statement
This press release contains forward-looking statements made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals, Inc.’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions, geopolitical events and regulatory changes, availability of capital, BMIX’s ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.