BRAZIL MINERALS, INC. ADVANCES ON ITS GOLD RECOVERY
FACILITY & PREDICTS PROFITABILITY IN ITS BRAZIL-BASED
OPERATIONS IN 2017
PASADENA, CA--(November 29, 2016 - InvestorsHub Newswire) -
Brazil Minerals, Inc. (OTC:
BMIX) (the "Company" or "BMIX")
announced today it has received the final piece of equipment
necessary for the gold recovery circuit that processes gravel and
thicker alluvial materials of any type found locally. This just
delivered machine is a stone remover to be used at the start of the
circuit and before the vibrating screen shown in the November 16,
2016 press release of the Company. The third and final component of
this circuit is a jig concentrator, already on site, which will be
connected to these other two pieces of equipment. The photograph of
Brazil Minerals' excavator placing the newly received stone remover
in a work area is attached to the version of this press release
posted on the Companys website (www.brazil-minerals.com).
Two photographs showing the top details of the stone remover and
of the jig concentrator are set forth below (available in the
release posted at www.brazil-minerals.com).
This side structure to pre-process heavier material is expected
to be completed within two weeks. As a result, Brazil Minerals will
then have the ability to run a complete gold and diamond recovery
circuit which is anticipated to have the ability to process 25% of
the hourly volume that its large, diesel-run recovery plant could
process, but with only 10% of the diesel and labor cost associated
with the operation of that plant. The greatest difference is in the
use of more advanced technology for gold extraction:
centrifugation, which studies have shown to yield 90% or higher of
retrievable particulate gold, as opposed to gravity separation,
shown to yield approximately 40%.
The predecessor company (no affiliation to Brazil Minerals) that
built the large recovery plant spent approximately $2.5 million on
its construction. On the other hand, the portable and scalable gold
and diamond recovery circuit developed by Brazil Minerals will cost
approximately 1% of such amount. In due time, this low cost should
permit the fabrication of more gold recovery circuits that can then
be placed to work in multiple locations simultaneously.
The Company expects to produce gold and diamonds from the new
recovery circuit before the end of December 2016. With expected
revenues from gold, diamond, sand and mortar, as well as various
efficiency and cost reduction measures implemented, the
Company now expects its Brazil-based operations to be cash
flow profitable by the second quarter of 2017 or possibly sooner.
Besides its Brazil-based operations, the Company has certain
U.S.-based expenses.
Brazil Minerals filed its third quarter of 2016 report on Form
10-Q last week. In the management's discussion and analysis section
of such report, the list of recent improvements in capital
structure is detailed. One of the metrics that management is
following intently, and wants to continuously improve, is book
value. The Company's book value, while still a negative number, has
increased since December 31, 2014 as shown below.
Date
|
Book Value
|
12/31/2014
|
($1,962,472)
|
12/31/2015
|
($387,885)
|
09/30/2016
|
($38,307)
|
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTC:
BMIX) is a producer of diamonds, gold, sand and industrialized
mortar. Through various subsidiaries, consolidated in our financial
statements, we have title to 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; the total
surface area of these mineral rights is 218,525 acres or 440 square
miles. More information on BMIX is 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.
Contact
Peter K. Goldy
Director of Communications
Brazil Minerals, Inc.
(213) 590-2500
info@brazil-minerals.com
www.brazil-minerals.com