Gold – Amazonas
BMIX’s Apui/Borba Project has essentially the largest size allowable for a mineral right in Brazil: it has 9,999.11 hectares, or approximately 24,700 acres, a surface area that is almost 15% larger than the entire island of Manhattan in New York. It is located in the northern part of Brazil, in the state of Amazonas, roughly between the cities of Apui and Borba, in a “gold belt” of the Amazon as described in maps of the mining department.
This area has had illegal settlers who reportedly were able to extract several kilograms of gold monthly. Gold is found in conglomerate form, yielding pebbles and pellets, at depths starting as high as 2 feet and with better veins beginning at 15 feet.
Historically, large gold areas in the Brazilian Amazon have commanded a range of valuations. In 2010, Eldorado Gold, through the acquisition of Brazauros Resources for a consideration of 122.4 million Canadian dollars, obtained the Amazon gold project known as Tocantizinho with reserves of 1.9 million ounces of gold at the time. In 2013, Brasil Resources, through the acquisition of Brasilian Gold for a consideration of 13.5 million Canadian dollars, obtained the Amazon gold project known as São Jorge, among others, with reserves of 1.75 million ounces of gold at the time.
Note to U.S. investors: none of the mineralization or reserve numbers cited here were obtained or calculated in accordance with the Securities and Exchange Commission’s Industry Guide 7, and therefore should not be considered as a basis for any investment decision.