Brazil Gold Corp., www.brazilgold.com – a precious metals exploration/development firm focused on Brazil with exclusive rights for mining and exploration on some 9 claims (2M acres) in the prolific western Amazon basin, recently reported entry into a letter of intent to acquire the Luziania Gold Project from the privately held Mineracao Rio De Padras Ltda.
Located in Brazil’s Goias State, about 31 miles southwest of the capital Brasilia and just six miles outside the City of Luziania, the Luziania project is well situated logistically, with excellent access to roads, power, water, skilled labor, hospital, communications and an airport.
The letter of intent itself is non-binding and the terms are to be determined pending due diligence by BRZG along stringent industry guidelines in anticipation of executing a binding agreement on or before April 28, 2011.
President of BRZG, Phil Jennings, characterized the advanced-stage Luziania project as being of inestimable value for serving as the cornerstone Brazil operations and extolled the Company’s team of hardened industry experts who were able to find and acquire such a deal even in such a “buoyant precious metals market”.
Jennings outlined the strategic agenda of BRZG, citing this move as a perfect example of the Company’s tactical approach to Brazil and to growing shareholder value through acquisition and development of such promising resources.
A breakdown of other relevant information related to the Luziania project is as follows:
• 21-year run of active development with mining permits, environmental impact studies and ore recovery analysis available
• Project is approved by Brazil’s National Department of Mineral Production, subject only to the Mine and Energy Ministry’s customary mining concession
• The initial target is the identified and evaluated upper layer, consisting of oxidized material (saprolite ores to a depth of some 43 feet) overlying a sulfide ore deposit
• Extant calculations on resources were performed according to internationally accepted practices/standards by the UNAMGEM office in Vancouver, Canada, using a typical section method
• Over 500 drill holes and 150 pit samples used to generate data for the initial resource