BELO HORIZONTE, BRAZIL–(Marketwired – Sep 11, 2014) – Brazil Minerals, Inc. (OTCQB: BMIX), (the “Company” or “BMIX”), a U.S. holding company with revenues from gold and diamonds, announced today that its subsidiary, Mineração Duas Barras Ltda. (“MDB”), had obtained the formal environmental permit to remove and commercialize sand, which is found in abundance in its mine. MDB operates an open pit mine and has the largest alluvial processing plant for gold and diamonds in Latin America.
The Company has received formal permission from SUPRAM (Superintendência Regional de Regularização Ambiental, the local environmental regulator) allowing the removal and commercialization of sand from the mining concession at MDB. Sand is a normal operational byproduct of the processing of alluvial gravel for diamonds and gold at the MDB plant, and therefore there is no direct cost to MDB in obtaining sand in large quantities. The Company has performed geochemical testing of several samples of its sand at a highly regarded analytical laboratory and the results indicate availability of sand of high quality sufficient for commercialization for cement mixing, glass manufacturing, and mortar preparation. Montes Claros, a city of over 400,000 people, and the closest large city to the MDB plant, is growing at double digit rates, and therefore demand for sand for civil construction and other uses is high, and there are very few suppliers.
Marc Fogassa, Chairman and CEO of BMIX commented, “Our sand will be able to generate cash flows or be used as a means of payment. For instance, we needed an extra truck to work in our excavation front for diamonds and gold. The cost of renting a large truck is approximately $8,000 per month. Instead of paying entirely with cash, the owner of the truck has agreed to 75% payment in sand on a monthly basis. We intend to study opportunities to exploit our abundant sand in other ways given its strong local demand.”
MDB mines conflict free diamonds and gold, and sells rough and polished diamonds and 96% purity gold. It owns mineral rights encompassing approximately 1,404 acres, including a fully-operational mining concession. MDB has NI 43-101 technical reports and a bankable feasibility study on file with the local mining authority. It also has the permit to export its production of rough diamonds as well as its own cut and polished diamonds.
About Brazil Minerals, Inc.
Brazil Minerals, Inc. (OTCQB: BMIX) is a U.S. holding company with revenues from gold and diamonds and ownership of interests in projects in diamonds, gold, titanium, vanadium and iron in Brazil. In particular, BMIX owns 86.88% of Mineração Duas Barras Ltda. (“MDB”), a Brazilian producer. MDB mines conflict free diamonds and gold, and sells rough and polished diamonds and 96% purity gold. MDB has a fully-operational mining concession and the permit to export its production of rough and polished diamonds. More information on BMIX can be found at www.brazil-minerals.com.
Safe Harbor Statement
This press release contains forward-looking statements made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals, Inc.’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions, geopolitical events and regulatory changes, availability of capital, BMIX’s ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Cautionary note regarding estimates of Indicated and Inferred Mineral Resources of Diamonds and Gold as found in MDB’s NI 43-101 Technical Reports.
We advise U.S. investors that while these terms and amounts are recognized by Canadian regulations, the U.S. Securities and Exchange Commission (“SEC”) does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves as defined by the U.S.’s Industry Guide 7.
Cautionary note regarding estimates of Mineral Reserves of Diamonds and Gold as found in MDB’s Bankable Feasibility Study.
We advise U.S. investors that while these terms and amounts are recognized by Brazilian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into mineral reserves as defined by the U.S.’s Industry Guide 7.