BRAZIL RESOURCES ANNOUNCES NI 43-101 GOLD-COPPER RESOURCE FOR THE TITIRIBI PROJECT, COLOMBIA
Highlights:
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The Titiribi NI 43-101 resource estimate has a measured and indicated resource of 4.63 Moz gold and an inferred resource of 3.25 Moz gold at a 0.3 g/t gold cut-off (See Tables 1 and 2 for details on tonnage, grade and contained metal);
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The mineral resource estimate for the Titiribi Project has resulted in Brazil Resourcesꞌ global gold resource increasing by 146% in the measured and indicated categories and 46% in the inferred category;
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The inclusion of this resource estimate increases BRI's global measured and indicated resource to 7.8 Moz gold (10.4 Moz gold equivalent) and inferred resource to 10.3 Moz gold (12.6 Moz gold equivalent) (see table 3 for details);
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Approximately 144,779 metres of diamond drilling in 270 holes has been completed on the Project;
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Project has excellent infrastructure including paved roads, high power electrical transmission lines 3 km from the property and water; and
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Nearby gold projects in development or production include AngloGoldꞌs Ashantiꞌs Quebradona, B2Goldꞌs Gramalote, Continental Gold's Buritica, Red Eagleꞌs San Ramon, and Gran Colombiaꞌs Marmato projects.
FOR IMMEDIATE RELEASE
Vancouver, British Columbia - Sept. 14, 2016 - Brazil Resources Inc. (the "Company" or "Brazil Resources") (TSX-V: BRI; OTCQX: BRIZF) is pleased to announce the results of a National Instrument 43-101 ("NI 43-101") mineral resource estimate for Titiribi Gold-Copper Project (the "Titiribi Project" or the "Project") located in Antioquia Department, approximately 70 kilometres southwest of the city of Medellin, Colombia.
Garnet Dawson, CEO, stated: "We are pleased to report this NI 43-101 resource estimate for the Cerro Vetas, Chisperos and NW Breccia, three of 9 mineralized porphyry-epithermal targets identified on the Titiribi Project. The inclusion of this resource estimate increases BRI's measured and indicated resource to 7.8 Moz gold (10.4 Moz gold equivalent) and our inferred resource to 10.3 Moz gold (12.6 Moz gold equivalent). In conjunction with advancing our existing project portfolio, the Company continues to evaluate resource-stage projects in the Americas for potential acquisition."
The Titiribi Project occurs within the Mid-Cauca Porphyry Belt and consists of several near surface bulk tonnage gold-copper porphyry and associated epithermal gold systems. A total of 270 diamond drill holes,
totaling 144,779 metres, have been drilled at the Titiribi Project, with nine mineralized areas identified to date. The Titiribi Project is comprised of one concession that covers an area of approximately 39.19 square kilometres. The project is located between 1,200 to 2,200 metre elevations, below the elevation of the Páramo tropical mountain ecosystems, and is road accessible by paved highway from Medellin with high power electrical lines passing within three kilometres.
The Mid-Cauca Porphyry Belt hosts several gold projects in development or production in the last decade, including AngloGold's Ashanti's Quebradona, B2Gold's Gramalote, Continental Gold's Buritica, Red Eagle's San Ramon, and Gran Colombia's Marmato projects. This has largely coincided with the government encouraging foreign development in a region that has not seen, until recently, the implementation of modern exploration programs.
Titiribi Resource Estimate
Brazil Resources has engaged Behre Dolbear & Company (USA), Inc. to prepare an independent NI 43- 101 technical report for the Titiribi Project, including updated resource estimates for the Cerro Vetas, Chisperos and NW Breccia deposits. The resource estimates, which have an effective date of September 1, 2016, for the measured and indicated, and inferred resource categories at various gold cut-offs are shown in Table 1 and Table 2, respectively.
Table 1: NI 43-101 measured and indicated resource estimates for the Cerro Vetas, Chisperos and NW Breccia deposits.
|
Deposit
|
Classification
|
Au Cut-off
|
Tonnage
|
Grade
|
Contained Metal
|
|
Au
|
Cu
|
AuEq
|
Au
|
Cu
|
AuEq1
|
|
(g/t)
|
(Mt)
|
(g/t)
|
%
|
(g/t)
|
Moz
|
Mlbs
|
Moz
|
|
Cerro Vetas
|
Measured
|
0.2
|
75.5
|
0.415
|
0.156
|
0.673
|
1.01
|
258.9
|
1.63
|
|
0.3
|
51.6
|
0.492
|
0.172
|
0.776
|
0.82
|
195.1
|
1.29
|
|
0.4
|
30.9
|
0.588
|
0.190
|
0.903
|
0.59
|
129.7
|
0.90
|
|
0.5
|
17.4
|
0.698
|
0.209
|
1.044
|
0.39
|
80.3
|
0.59
|
|
Indicated
|
0.2
|
231.8
|
0.38
|
0.133
|
0.601
|
2.84
|
678.3
|
4.48
|
|
0.3
|
132.4
|
0.483
|
0.157
|
0.744
|
2.06
|
459.3
|
3.17
|
|
0.4
|
73.3
|
0.593
|
0.176
|
0.885
|
1.40
|
284.3
|
2.09
|
|
0.5
|
38.0
|
0.731
|
0.195
|
1.054
|
0.89
|
162.8
|
1.29
|
|
Chisperos
|
Indicated
|
0.2
|
140.3
|
0.350
|
-
|
0.350
|
1.58
|
-
|
1.58
|
|
0.3
|
62.1
|
0.484
|
-
|
0.484
|
0.97
|
-
|
0.97
|
|
0.4
|
32.2
|
0.616
|
-
|
0.616
|
0.64
|
-
|
0.64
|
|
0.5
|
19.3
|
0.733
|
-
|
0.733
|
0.45
|
-
|
0.45
|
|
NW Breccia
|
Indicated
|
0.2
|
73.2
|
0.447
|
-
|
0.447
|
1.05
|
-
|
1.05
|
|
0.3
|
39.7
|
0.618
|
-
|
0.618
|
0.79
|
-
|
0.79
|
|
0.4
|
24.1
|
0.796
|
-
|
0.796
|
0.62
|
-
|
0.62
|
|
0.5
|
15.2
|
1.001
|
-
|
1.001
|
0.49
|
-
|
0.49
|
|
Base Case - M+I
|
0.3
|
285.8
|
0.50
|
-
|
0.676
|
4.63
|
654.34
|
6.21
|
Table 2: NI 43-101 inferred resource estimates for the Cerro Vetas, Chisperos and NW Breccia deposits.
|
Deposit
|
Classification
|
Au Cut-off
|
Tonnage
|
Grade
|
Contained Metal
|
|
Au
|
Cu
|
AuEq
|
Au
|
Cu
|
AuEq1
|
|
(g/t)
|
(Mt)
|
(g/t)
|
(%)
|
(g/t)
|
(Moz)
|
(Mlb)
|
(Moz)
|
|
Cerro Vetas
|
Inferred
|
0.2
|
196.4
|
0.309
|
0.051
|
0.394
|
1.95
|
219.9
|
2.48
|
|
0.3
|
70.8
|
0.429
|
0.050
|
0.511
|
0.98
|
77.9
|
1.16
|
|
0.4
|
30.5
|
0.542
|
0.049
|
0.625
|
0.53
|
33.2
|
0.61
|
|
0.5
|
14.3
|
0.657
|
0.049
|
0.738
|
0.30
|
15.4
|
0.34
|
|
Chisperos
|
Inferred
|
0.2
|
122.2
|
0.329
|
-
|
0.329
|
1.30
|
-
|
1.30
|
|
0.3
|
51.1
|
0.452
|
-
|
0.452
|
0.74
|
-
|
0.74
|
|
0.4
|
23.4
|
0.580
|
-
|
0.580
|
0.44
|
-
|
0.44
|
|
0.5
|
11.0
|
0.737
|
-
|
0.737
|
0.26
|
-
|
0.26
|
|
NW Breccia
|
Inferred
|
0.2
|
150.0
|
0.423
|
-
|
0.423
|
2.04
|
-
|
2.04
|
|
0.3
|
86.0
|
0.555
|
-
|
0.555
|
1.54
|
-
|
1.54
|
|
0.4
|
48.0
|
0.722
|
-
|
0.722
|
1.12
|
-
|
1.12
|
|
0.5
|
35.1
|
0.826
|
-
|
0.826
|
0.93
|
-
|
0.93
|
|
Base Case - Inferred
|
0.3
|
207.9
|
0.487
|
-
|
0.515
|
3.25
|
77.9
|
3.44
|
Table 1 and 2 Notes:
-
Gold Equivalence estimated using $1,300 per ounce gold at 83% recovery and $2.90 per pound copper at 90% recovery.
-
A 0.3 g/t gold equivalent cut-off has been highlighted as the base case cut-off.
-
Totals may not represent the sum of the parts due to rounding.
-
The Mineral Resources have been prepared by Behre Dolbear & Company (USA), Inc. in conformity with "CIM Definition Standards for Mineral Resources and Mineral Reserves 2014
The Cerro Vetas, Chisperos and NW Breccia are three of several porphyry-epithermal mineralized centers identified on the Titiribi Project (Fig. 1). The central Cerro Vetas deposit contains both gold and copper whereas the Chisperos deposit located to the east-northeast is primarily gold as is the NW Breccia located to the north of Cerro Vetas; the deposits are open at depth. Gold-copper mineralization is associated with quartz + magnetite stockwork and disseminations hosted in potassically altered diorite intrusive rocks, whereas gold-only mineralization is commonly hosted in diatreme breccia, fracture zones and receptive stratigraphic units.
The Cerro Vetas, Chisperos and NW Breccia deposits were modelled on a series of cross-sections and level plans and geological wire frames constructed for the various geological units. Diamond drill holes
(254) totaling 141,586 metres were used to define the model. Erratic high grade outliers for gold and copper were capped within the various solids. Composites 5 metres in length were formed within each of the domains that honoured the domain boundaries. Variography was used to model the grade continuity and to determine the search ellipse orientations and dimensions for interpolation. Ordinary kriging was used to estimate gold, silver and copper into blocks measuring 5 x 5 x 5 metres in dimension. A total of 6,820 specific gravity measurements were used to convert volumes to tonnes. A gold cut-off grade of
0.30 g/t was chosen as a possible open pit cut-off based on similar types of mineralization found at other near surface deposits in the world. Validation of the model was completed by comparison of the block model and drill hole grades by visual inspections in section and plan across the deposit. There are no known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources.
Figure 1: Titiribi Project showing location of Cerro Vetas, Chisperos and NW Breccia deposits (drill holes are overlain on airborne magnetics - warm color denote magnetic highs and cool colors denote magnetic lows).
Quality Control - Quality Assurance Program
The above resource estimate was based on drill programs completed by previous operators that incorporated control samples including blanks, duplicates and standards as part of their Quality Control -