BRAZIL MINERALS, INC. UPDATES
ON GOLD, DIAMOND, AND POTENTIAL MANGANESE OPPORTUNITY
PASADENA, CA -- June 27, 2016 -- InvestorsHub NewsWire
-- Brazil Minerals, Inc. (OTC:
BMIX) (the "Company" or "BMIX")
announced today several developments: 1) the successful recovery of
diamond and gold and the unexpected finding of larger alluvial
deposits of free gold from a new mining area; 2) a new manganese
opportunity; and 3) the visit by an investor representative to the
Company's Brazilian operations.
During the initial excavation of one of its more than two dozen
mineral rights along the banks of the Jequitinhonha River in the
state of Minas Gerais, Brazil, the Company uncovered alluvial gold
at much earlier depths than the targeted gravel layer, which was
unexpected. Such widely scattered deposits are of the alluvium
type, most likely from the Quarternary geological age. Photographs
of the excavation and of material from two of the aforementioned
deposits are attached to the version of this release posted on the
Company's website (www.brazil-minerals.com).
The alluvium material containing gold varies according to
specific locale but is mostly made of sand, silt, and clay and as
such does not run properly in BMIX's recovery plant. The plant was
built to process diamondiferous gravel and not auriferous sands.
The main conclusion reached after careful study by the Company's
mining engineer and consultants, is that to optimize revenue and
lower costs, extractions for gold and diamonds, performed jointly
to date, are best if dissociated. If the Company proceeded with the
previously planned methodology, gold would be inadvertently
discarded from earlier layers, or contaminated as any oil or
lubricant droplets (from the excavator, trucks, or bulldozer)
reaching the desired alluvium makes extraction of gold from such
material nearly impossible.
For its deposits of alluvial gold, after deliberate analysis of
available technologies,
BMIX plans to use centrifugal separators, a well-accepted and
chemical-free methodology. Centrifugation offers several potential
advantages, such as: 1) it is known to provide extraction yields
above 90% (with some newer centrifuges yielding over 99%); 2) it
can capture fine gold in almost twice the particulate size range as
spiral concentrators (the technology used in the plant); 3) it will
reduce the operational cost of diesel and labor by 75% or more; 4)
it will substantially diminish transportation costs if placed near
the excavation site; and 5) it will permit project scalability,
such that additional centrifuges may be added to work in
parallel.
In particular, centrifugation will allow BMIX to extract gold
from a type of material that it did not plan to process. As stated
before, the Company's recovery plant was built to optimize diamond
production, not gold recovery. In particular, the plant's
gold-recovery circuit is fed only such material washed off from
gravel that is processed in its diamond-recovery circuit. Its gold
extraction occurs via spiral concentrators followed by a shaking
table. Based on published studies, the Company estimates that the
yield in this gold-recovery circuit is only approximately 40% as
compared to a yield of approximately 90% expected from
centrifuges.
Observed alluvial gold concentration is directly dependent on
the selection of material that is processed. Using the plant,
BMIX has noticed gold concentrations from gravel mixed with
sand to be as high as 0.9 and as low as 0.1 grams per cubic meter.
Because of this lack of homogeneity, it is nearly impossible to
ascribe one singular concentration to a wide area. However, with
centrifugation, the Company believes that the operational cost will
be sufficiently attractive that it can essentially run all alluvium
material. Furthermore, BMIX believes that most, if not all, of its
various mineral areas along the Jequitinhonha basin will be found
to have auriferous sands to varying degrees and thus will be
targets for this type of modular extraction.
After the identification of alluvial gold, which modified the
planned methodology, the amount excavated for diamonds was enough
to confirm recovery but not to ascertain a reliable concentration
over a wide area. For optimization of diamond production, and given
its now separation from gold processing,
BMIX believes that the best method is pre-processing of gravel
in situ with a mini-plant followed by transportation of only
concentrated material to its current plant. That plant's
diamond-recovery circuit has seven jigs, but needs only four. The
Company intends to use one or two of these available jigs to build
its mini-plant. Diamond extraction using a mini-plant has several
potential advantages. The first is portability, as the mini-plant
is deployable next to an excavation, and movable to a new location
within days. Its output is a concentrate of high-potential material
for diamonds, and only this concentrate is transported to the large
plant, with substantial reduction in the costs of truck rentals,
diesel, and labor. The final step, processed in a secure facility
in the main plant, is the passage of the concentrate through the
hands-off flow-sort diffraction recovery separator for
identification of diamonds.
Separately,
BMIX has received a proposal from a local, experienced diamond
expert and operator to mine its new area for diamonds. In this
scenario, the Company would not have operational costs and in
return, it would receive a percentage of profits.
BMIX is evaluating such alternative.
To move ahead with the above-described extraction methodologies,
BMIX has identified four gold-separating centrifuges, and is
initially renting two of them. The Company has received the first
centrifuge, and will be adapting it to use.
BMIX has also identified a local company that can build the
diamond mini-plant in a few weeks. The Company is in discussions
with equity investor groups regarding financing of certain costs
for these plans. Over time,
BMIX believes that the deployment of separate, modular,
portable extraction units for gold and diamonds is replicable,
possibly in parallel, to several of its multiple mineral rights
areas in the Jequitinhonha River Valley.
In other news, the Company is in final stages of securing, from
the Brazilian mining department, the mineral rights for a certain
manganese claim, which is attractive for several reasons: 1)
favorable local geology and formations; 2) good transportation
logistics; and 3) the fact that manganese is in demand for use in
batteries and steel. A new wholly owned Brazilian subsidiary of
BMIX has title of this asset in order to facilitate possible
transactions with groups focused on non-precious metals. The
Company recognizes that although it has its hands full as mentioned
above, it keeps informed of special, high-impact situations that
may arise from time to time.
Finally,
BMIX is pleased to report that a representative from one its
investor groups recently visited the Company's operations in Minas
Gerais. He has endorsed its progress, and in fact has referred the
Company's CEO to other business contacts and potential investors,
and invited him for a formal presentation.
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTC:
BMIX) is a producer of diamonds, gold, sand, and industrialized
mortar. We also own 30 mineral rights for gold and diamonds,
including 10 mining concessions, the highest level of right to mine
in Brazil. More information on
BMIX can be found at www.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.
Cautionary note regarding estimates of Indicated and
Inferred Mineral Resources of Diamonds and Gold as found in MDBs NI
43-101 Technical Reports.
We advise U.S. investors that while these terms and amounts
are recognized by Canadian regulations, the U.S. Securities and
Exchange Commission (SEC) does not recognize them. U.S. investors
are cautioned not to assume that any part or all of the mineral
deposits in these categories will ever be converted into mineral
reserves as defined by the U.S.'s Industry Guide 7.
Cautionary note regarding estimates of Mineral
Reserves of Diamonds and Gold as found in MDBs Bankable Feasibility
Study.
We advise U.S. investors that while these terms and amounts
are recognized by Brazilian regulations, the SEC does not recognize
them. U.S. investors are cautioned not to assume that any part or
all of the mineral deposits in this category will ever be converted
into mineral reserves as defined by the U.S.'s Industry Guide
7.
Cautionary note regarding estimates of Volume and
Weight of Sand as found in MDBs studies filed with the local
Brazilian regulatory agencies.
We advise U.S. investors that while sand volume and weight
terms and amounts as filed in Brazil are recognized by Brazilian
regulations, the SEC does not recognize them. U.S. investors are
cautioned not to assume that any part of such are not considered
mineral reserves as defined by the U.S.'s Industry Guide
7.
Cautionary note regarding estimates of potential
mineralization for gold of the Apui/Borba Project with the local
Brazilian regulatory agencies.
We advise U.S. investors that potential mineralization for
gold of the Apui/Borba Project with Brazilian regulators is not
recognized by the SEC. U.S. investors are cautioned not to assume
that any part of such potential mineralization is or will ever
become mineral reserves as defined by the U.S.'s Industry Guide
7.
Contact:
Marc Fogassa
CEO, Brazil Minerals, Inc.
(213) 590-2500
info@brazil-minerals.com
www.brazil-minerals.com