Brazil Minerals Inc has obtained the last necessary approval from a regulatory entity in Brazil to allow mining for gold and diamonds in one of its many Jequitinhonha River Valley mineral rights. As announced previously, a drilling campaign within this project area indicated that 35 out of 35 drills holes were positive for gold. Additionally, in a majority of such drill holes, satellite markers that indicate the likely presence of diamonds were recovered.
Marc Fogassa, CEO of Brazil Minerals, commented, “This news is timely and very well received. We have built a strong local team that is able to work diligently through complex and changing requirements for licensing and permitting for mining. It’s beginning to bear fruit and we’re not stopping here as we want to be producing revenues from multiple mining sites in due time.”
Brazil Minerals Inc (OTCMKTS: BMIX) along with its subsidiaries has a business model focused on: 1) mining specific areas for gold and diamonds, and 2) generating projects from its portfolio of high quality mineral rights for transactions leading to royalties and/or equity positions. Our first equity holdings from such strategy is a 55% ownership in Jupiter Gold Corporation (OTC: JUPGF).
The Company’s diamond and gold operations and properties in the Jequitinhonha Valley area of the state of Minas Gerais in Brazil are in two subsidiaries, Mineração Duas Barras Ltda. (“MDB”) and RST Recursos Minerais Ltda. (“RST”).
MDB owns a large alluvial diamond and gold processing and recovery plant, capable of processing upwards of 45 tons of gravel per hour of operation. The best information that this plant was built by South African mining engineers hired for the task and cost $2.5 million to construct. It is regarded as the largest such plant in Latin America.
MDB has title to two mineral rights. One is a mining concession for diamond, gold, and sand (discussed below). The other, physically separated, is an area for which we have submitted the application to mine. Both of the MDB mineral rights are located on the left margin of the Jequitinhonha River in the State of Minas Gerais in Brazil. The Jequitinhonha River valley is a well-known area for diamond and gold production; it has hosted alluvial production since the 18th century.
MDB’s mining concession (“Concessão de Lavra”) covers an area of 422 acres. It allows for the exploration and commercialization of diamonds, gold, and sand. Concessão de Lavra” is the highest level of mineral right in Brazil. MDB’s other mineral right covers an area of 982 acres. In February 2016, filed with the mining department a detailed application with technical study for commercial mining of this area. We also filed the appropriate permit with the environmental department. We are monitoring both applications.
Brazil Minerals has had its polished diamonds certified and graded at the Gemological Institute of America (“GIA”) in Carlsbad, California. The highest color grade has been “E”, the 2nd highest possible grade (the color scale starts at “D”). The best clarity has been “VVS1”, the 2nd best clarity possible. The majority of the Company’s diamonds have graded F-G for color and VVS2-VS2 for clarity, with weights between 0.4 and 2.0 carats. The Rapaport valuation of Brazil Minerals’ diamonds graded at GIA has been $3,250 per carat.
According to the Company they drilled 35 holes spaced 30 to 50 meters at one of its several mineral rights in the Jequitinhonha River Valley located in the northern part of the state of Minas Gerais in Brazil and the holes were positive for fine gold as observed by the drilling team, with samples collected for quantitative geochemical analysis. The average depth for the auriferous gravel layer was 8 meters and with a thickness between 1.5 to 9.3 meters.
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**BMIX owns 100% of MDB, a Brazilian producer and seller of polished and rough diamonds, gold bars, and industrial-use sand. MDB operates a fully-operational mining concession with the largest alluvial processing plant for diamonds and gold in Latin America, and has the Brazilian permit to export its production.
BMIX also owns 25% of RST Recursos Minerais, Ltda. (“RST”), a Brazilian company with 10 mining concessions and 12 other mineral rights for diamond and gold. The RST areas are located near MDB’s plant, in the Jequitinhonha River valley, a well-known area for diamonds and gold for over two centuries.
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