Montes Aureos

The Montes Áureos property is located 20 kilometers south of the Chega Tudo and Cipoeiro gold deposits owned by Jaguar Mining and 180 kilometers west of the city of Sao Luis. The Montes Áureos property comprises a 2,000 hectare exploration license valid until April 2014.

The geology of the property comprises the Chega Tudo Formation, a highly strained volcano-sedimentary sequence that hosts the gold mineralization associated with the development of a major NW-SE structural corridor 120 kilometers long where several gold deposits have been identified, such as the Chega Tudo, Cipoeiro, Serrinha and Cachoeira deposits.

Brazil Resources Inc. completed an exploration program in September 2010 with the objective to delineate the main mineralized gold zones on the Montes Áureos property. The scope of the work included channel sampling of outcrops, registering and sampling of previous informal miners' works such as pits, drifts, previous excavations, surface soil sampling in addition to a limited auger drilling subsurface program on a selected area with anomalous gold soil sample results.

Results from the 2010 exploration program, including a 200meter x 50meter spaced grid soil sampling, led to the delineation of a continuous 2 kilometer long by 300 meter wide Au-As-Cu geochemical anomaly. The footprint of the Montes Áureos project is comparable in size to the footprint of the Chega Tudo deposit, which indicates that there is the potential to generate a high tonnage/ low grade type of deposit similar to that of Chega Tudo.

Ten drill holes totaling 1,616 meters were completed in the winter of 2012 on the Montes Áureos project. Nine drill holes (MADDH-02, 03, 04, 05, 06, 07, 08, 08A and 09) tested the 500 meter northern expression of a 2 kilometer long gold/arsenic soil/auger anomaly identified by the Company. The drill results confirmed a continuous low-grade 100-130 meter wide gold enrichment zone that hosts several 1 meter to 17 meter intersections with grades between 0.45 and 3.5 g/t gold. The mineralization is typical of greenstone-hosted bulk low-grade deposits.

TABLE 1 - Drill hole intersections above 0.45 g/t gold at Montes Áureos.

Drill Hole
From (m)
To (m)
Interval (m)
Au (g/t)
 
MADDH-O2
25.00
32.00
7.00
0.51
incl. 2.0m @ 0.95 g/t
MADDH-O2
98.00
104.00
6.00
0.52
incl. 1.0m @ 2.43 g/t
MADDH-O3
53.00
66.50
13.50
0.46
incl. 4.0m @ 0.75 g/t
MADDH-O3
100.00
102.00
2.00
0.55
 
MADDH-O4
0.00
8.00
8.00
0.49
 
MADDH-O4
88.50
95.00
6.50
0.56
incl. 0.7m @ 2.34 g/t
MADDH-O5
30.00
33.00
3.00
1.10
incl. 1.1m @ 1.74 g/t
MADDH-O6
17.00
34.00
17.00
0.49
incl. 1.0m @ 1.34 g/t
MADDH-O6
68.00
72.00
4.00
1.10
incl. 1.3m @ 1.45 g/t
MADDH-O6
91.50
98.00
6.50
1.10
incl. 1.0m @ 3.82 g/t
MADDH-O6
109.00
114.00
5.00
0.58
incl. 1.6m @ 0.90 g/t
MADDH-O7
1.35
10.00
8.65
0.49
incl. 1.0m @ 0.95 g/t
MADDH-O7
16.00
28.00
12.00
0.45
incl. 1.0m @ 1.54 g/t
MADDH-O8A
1.00
6.00
5.00
0.51
incl. 1.0m @ 0.73 g/t
MADDH-O8A
26.00
28.00
2.00
0.73
incl. 1.2m @ 0.94 g/t

 

MONTES ÁUREOS PROJECT HISTORY

In 1857 a commission was established to study the gold occurrences in the Montes Áureos region. Shortly after the establishment of the commission the Mining Company of Maranhao State (CMM) was incorporated with Portuguese capital to construct the logistics and infrastructure required for mining operations at Montes Áureos.

The company was sold shortly after that to the Montes Áureos Brazilian Gold Mining Company, a public company listed on the London Stock Exchange. In 1865 the company went bankrupt and ceased mining operations, and since then the Montes Áureos property has been sporadically mined by informal miners. Equipment and excavations left behind from the oldest historical operations are still found in the northern area of the Montes Áureos project.

During the 1980's, Cia Paraense de Minerios Ltda, in partnership with GEOSER - Servicos de Geologia e Mineracao, initiated a regional reconnaissance program as well as a systematic exploration program at Montes Áureos.

In 1994 an assessment report was submitted and the licenses were renewed in 1995 with the mineral rights transferred to the company Mineracao Montes Aureos Ltda. During the period of 1995-1997, under an existing agreement between the Mineracao Montes Aureos Ltda and TVX, further exploration work was developed on the two exploration licenses.

Brazil Resources negotiated in May 2010 an option and joint venture agreement with J Fernando Tajra Reis to earn up to 97% interest in the property. Exploration work resumed on the property immediately afterwards with Brazil Resources as the operator in September 2010.

Further detailed technical information on the Montes Áureos project and the Company's planned work program can be found in the NI 43-101 technical report entitled “Independent Technical Report on Exploration” and authored by Mario Conrado Reinhardt, BSc (Geo) MAIG of Coffey Mining, who is independent of Brazil Resources, and dated March 16, 2011, a copy of which is available under the Company's profile at www.sedar.com.