On December 8, 2011, the Company announced that its wholly-owned subsidiary entered into an option agreement (the "Artulandia Agreement") to acquire a 100%-interest in the 12,000 acre Artulandia Property located in Goias State, Brazil. The Artulandia Property is within the Company's 247,000 acre Pireneus district.

In a news release dated April 26, 2012, Brazil Resources announced the first results of a geochemical sampling program at Artulandia and identified eight target areas (ART-1 to ART-8) with elevated copper, gold, lead and zinc values surrounding a large intrusive granitoid with rock grab sample results of up to 1.2 g/t gold, 0.7% copper and greater than 2% lead-zinc in separate samples.

Since May 2012, follow-up geochemical sampling and detailed geological mapping programs have been completed on target areas ART-1 and ART- 5. In addition a geophysical IP/Mag ground survey has been completed and a trenching program has been initiated at ART-1. To date, assay results are available for a total of 603 rock grab samples, 1,581 soil samples and 62 stream sediment collected from target areas ART-1 and ART-5.

Petrographic analysis from mineralized specimens indicate that the mineralization is associated with replacement patches of sulphides, consisting of galena (altered in part to cerussite), chalcopyrite (altered strongly to hematite with lesser malachite and trace covellite), and sphalerite (altered to a variety of secondary Zn minerals) with minor pyrite (altered almost completely to hematite).

On September 6, 2012, the Company announced that recent rock sampling, geophysical and soil geochemical surveys at its Artulandia project have confirmed IP/Mag geophysical targets of interest coincident with copper-gold anomalous zone of approximately 1,000m by 250m, which is open in all directions. Based on preliminary exploration data, similarities are being drawn with Yamana’s Chapada Copper-Gold Mine to the north. However, we acknowledge that the Artulandia project is in the early stages of exploration and, therefore, more work, including drilling, needs to be done to fully realize and understand this project.

Highlights from the new results obtained at Artulandia include:

  • Target ART-1; Further follow-up work has confirmed new mineralized outcrops, with increased copper values of up to 0.81%, gold values of up to 2.3 g/t and silver values of up to 344 g/t, plus additional anomalies of leadzinc. A geophysical survey has identified a main IP anomaly trending along strike for approximately 400m, which coincides with the geochemically defined gold-copper zone identified by previous soil and rock chip sampling. ART-1 is considered a priority, and the next phase of exploration is expected to include diamond drilling of this target. Geochemical sampling indicates that the mineralization extends for an additional 600m to the east of the main IP anomaly (Targets ART-2 and ART-3).
  • Target ART-5; A new zone located approximately 750m NE of ART-1 has been discovered comprising gossans trending along strike for approximately 700m. These gossans are similar to those found at target area ART-1. A total of 50 rock geochemical samples have been collected from target area ART-5 and sent to the laboratory to confirm the presence of mineralization.

Based on petrographic and detailed geochemical and geophysical data interpretation, Company geologists believe the geology at Artulandia may be a porphyry copper deposit. Therefore comparisons are being drawn with the Chapada Mine operated by Yamana Gold, which is located approximately 140 kilometers north of the Artulandia project.

The geophysical survey acquisition datawas performed by Fugro Geophysics, and interpretation by Reconsult Geofísica. The IP-resistivity survey comprised 7.65 line kilometers, and the magnetics survey comprised 23.35 line kilometers. The grid lines were oriented north-south and each line was 100 meters apart. The Company plans to further its exploration efforts on all the remaining targets.