Brazilian Resources (YBZ-V) and IMS Empreendimentos have agreed to enter a joint venture to develop small and medium-sized mineral properties in Brazil.
Under the deal, Brazilian Resources will contribute its wholly owned Sabara gold property in Brazil’s Minas Gerais state and will hold a 90% interest of the joint venture.
IMS will be responsible for: analysis of the property’s previous exploration work; metallurgical testing; environmental licenses; and completion of a technical and economic prefeasibility study. IMS can boost it interest in the joint venture by contributing a gold, base metal or industrial metal property.
IMS has a prefeasibility study under way at Sabara. It is studying the potential of an open-pit mine, with ore trucked to an existing heap-leach area and CIC plant in the vicinity. The study envisages annual production of 240,000 tonnes of ore for the first 2.5 years after an investment of about US$2 million. The partners foresee low-cost production beginning in about a year.
The 24-sq.-km Sabara property is located in Brazil’s most prolific mining camp, the Quadrilatero Ferrfero, which is host to numerous gold deposits in banded iron formations.
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