Brett consolidating Hammond Reef title

Vancouver – An agreement inked between Brett Resources (BBR-V, BBRRF-O) and Kinross Gold (K-T, KGC-N) will see ownership of the Hammond Reef gold project, in northwestern Ontario, consolidated under the junior.

The deal sees Brett exercising its existing option to acquire 60% in the project from Kinross and then acquiring the remaining 40% all by the end of May 2008.

To lodge its 60% interest in Hammond Reef, Brett must show it has completed US$5 million in work on the gold project and also needs to issue the remaining 400,000 shares to the major under the option agreement.

The acquisition plan also has Brett agreeing to spend up to $2 million reviewing certain properties in B.C. and the Yukon which if acquired Kinross will be entitled to a 50% interest. Brett will also issue 14 million shares to the senior gold producer (to hold roughly 27% of Brett) that will retain anti-dilution rights in future financing and will get a seat on the board.

Additionally, Kinross will retain a 2% net smelter retain royalty on Hammond Reef and certain associated properties held by Brett.

Located near the town of Atikokan, Hammond Reef hosts a historic (non-National Instrument 43-101 compliant) inferred resource of 86 million tonnes grading 0.93 grams gold per tonne (roughly 2.6 million contained oz. gold) using a 0.4 gram gold cut-off grade.

The deposit is primarily hosted in a 100-300 metre wide band of altered granitoid rocks within and adjacent to a strongly foliated schist-fault zone (the Hammond Reef Schist Zone). Gold mineralization occurs in fracture-controlled quartz vein stockworks with minor fine pyrite.

Historic mining was undertaken on the project area in the late-1890s from small surface pit operations.

Brett has a pair of drills turning on the project and anticipates putting out an updated resource estimate for Hammond Reef by mid-year.

Shares of the junior rallied on the news gaining as much as 21% — up 23 to $1.30 apiece — in March 27th trading. Based on its 40.4-million shares outstanding Brett posts a $46.5-million market capitalization. The stock has a 52-week trading range of 73-$1.63.