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Brazil Resources' Investor Presentation Brazil Resources' Investor Presentation Presentation Transcript

  • January 2011
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”FORWARD LOOKING INFORMATIONThis presentation contains "forward-looking information" within the meaning of applicable Canadian securities regulations. Forward-looking informationincludes, but is not limited to, statements with respect to the future price of minerals and the effects thereof, the timing and amount of estimated capitalexpenditures, costs and timing of proposed activities, plans and budgets for and expected results of exploration activities, exploration and permitting time-lines, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation obligations and expenses, theavailability of further acquisition opportunities and Brazil Resources Inc’s ("BRI") use of the proceeds from financings. This forward-looking information isbased on certain assumptions that BRI believes are reasonable, including that the current price of and demand for minerals being targeted by BRI will besustained or will improve, that BRI’s current exploration programs and objectives can be achieved, that general business and economic conditions will notchange in a material adverse manner, that financing will be available if and when needed on reasonable terms and that BRI will not experience any materialaccident, labour dispute, or failure of plant or equipment. Forward-looking information involves known and unknown risks, uncertainties and other factorswhich may cause the actual results, performance or achievements of BRI to be materially different from any future results, performance or achievementsexpressed or implied by the forward-looking information. Such factors include, among others, that BRI has a limited operating history, resource explorationand development is a speculative business, BRI may lose or abandon its interest in its properties, the Montes Áureos Property is in the exploration stage andis without known bodies of commercial ore, BRI may not be able to obtain all necessary permits and approvals that may be required to undertake explorationactivity or commence construction or operation of mine facilities on any of its properties, environmental laws and regulations may become moreonerous, BRIs ability to raise additional funds by equity financing and the fluctuating price of gold, as well as the other factors discussed in the section of theFinal Prospectus (the "Prospectus") of BRI dated April 21, 2011 entitled "Risk Factors" filed with Canadian securities regulators and available atwww.sedar.com.Although BRI has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be noassurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in suchstatements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof. Except as requiredunder applicable securities legislation, BRI does not intend, and does not assume any obligation, to update this forward-looking information.The information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or soldin the United States absent registration or exemption from registration.Technical InformationThe technical information in this presentation is derived from the independent technical report dated March 16, 2011 entitled "Montes Áureos GoldProject, Maranhão, Brazil" prepared by Mario Conrado Reinhardt, BSc(Geo), MAIG of Coffey Mining (the "Technical Report"). Reference should be made tothe full text of the technical report, a copy of the Technical Report is available at www.sedar.com. Reference should also be made to the full text of BRIsFinal Prospectus dated April 21, 2011, which is also available at www.sedar.com. 2
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”CORPORATE OVERVIEW Newly listed on the TSX Venture Exchange as of May 16, 2011 Strategic alliance with the Brasilinvest Group – a leading Brazilian merchant bank that has attracted investments in the range of US $12 billion Focused on acquiring portfolio of advanced projects with drill ready targets in emerging gold districts of the Brazilian Shield Experienced Brazilian operating, management and board teams 3
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” INVESTMENT HIGHLIGHTS Track Record of Discovery: Technical team involved in discovery and development of more than 10 million ounces of gold in Brazil Superior Access to Capital Markets: BRI’s executive team and directors have a proven track record in raising capital in the resource sector Controls +300,000 Acres In Top Brazilian Gold Districts: Including three projects in the Gurupi Belt, an emerging district with mining companies such as Kinross Gold, Jaguar Mining and Luna Gold developing exploration projects and gold mines Established Infrastructure: All BRI properties in the Gurupi Belt have access to roads, electricity and water Strong Treasury: With over $10M cash on hand the company is well positioned to execute on exploration programs and acquisition opportunities 4
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” CAPITAL STRUCTURE & SHARE PERFORMANCE Shares Issued Recent Share Performance As of January 5, 2011As of January 1, 2011 Recent Closing Price $1.17Cash Position $10.1M Trading Range (Since IPO) $1.00 - $1.45Shares Issued and Outstanding 39.4M Average Volume ~30,000Warrants Outstanding .3MOptions Outstanding 1.6MTotal Issued and Outstanding 41.3M Major Institutional Shareholders Market Valuation As of January 5, 2011 As of January 5, 2011 Management and Insider Ownership ~30% Enterprise Value $36M Institutional Ownership ~35% Market Capitalization $46M • KCR Fund Over CDN $10 M in the treasury with • Brasilinvest Group no debt • Encompass Funds 5
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”THE BRI TEAM Amir Adnani, Chairman Steve Swatton, President & CEO Founder and CEO of Uranium Energy Former head of BHP Billiton’s Global Corp- North America’s newest uranium- Business Development and Technical producer divisions (Exploration Dept.) Mario Garnero, Director Enzio Garayp, Director Chairman of Brasilinvest Former Exploration Manager for Group, merchant bank which has Kinross in Brazil and directly attracted investments up to US $12 oversaw the 8 Moz expansion of billion to Brazil their 15 Moz Paracatu Mine 6
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” THE BRI TEAM Pat Obara, Director & CFO - Mr. Obara was CFO of Uranium Energy Corp from 2006 to 2011 and has served as CFO for several TSX Venture companies Paulo Pereira, Vice President of Exploration - Over 25 years of experience in exploration development in Brazil and Canada including developing new business opportunities for juniors David Kong, Director - Mr. Kong is a director for several mining companies and formerly served as a partner with Ernst & Young and Ellis Foster Chartered Accountants Herb Dhaliwal, Advisor - Former Canadian Minister of Natural Resources and Minister of National Revenue in the Federal Cabinet under Prime Minister Jean Chretien Ovidio Antonio de Angelis, Advisor - Served as the Minister of Regional Politics and Minister of Urban Development in the Brazilian cabinet from 1998 through 2002 Paulo Espellet, Senior Geologist - Over 20 years of experience in exploration7 activities throughout major mining districts in Brazil
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”BRASILINVEST — A STRATEGIC PARTNER IN BRAZIL Structured and completed projects and investment plans in Brazil in the range of US $12 billion Sample of transactions: ITT-Standard Electric SA, NEC, Cofap, Bombril, Fiat, Volkswagen, Varig, Boehringer, Celupa, Mellita Brasilinvest has been a pioneer in discussing themes such as globalization and its effects on the Brazilian market at various venues Founded in 1975 by Mario Garnero, a director of Brazil Resources BRI Director Mario Garnero with Brazilian BRI Director Mario Garnero with Former President Rousseff (2011- present) Brazilian President Lula da Silva (2003-2010) 8
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” INVESTING IN BRAZILBRAZIL AS A PREMIER MINING JURISDICTION Stable political climate that encourages foreign investment Is among the top 5 destinations for foreign investment (UNCTAD) One of the top three mining jurisdictions in South America Clear permitting process with federal gov’t as sole authority Low royalty rate of 1% on gold 9
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”GURUPI GOLD BELT IN THE NEWSLuna Gold – Announces major resource upgrade at Aurizona; M+I resources increase by 250% – 3.9 Moz Aurizona Gold Mine commences production – Combined regional resources of 4.5 MozJaguar Mining – Reportedly offered $1B by Chinese miner – Gurupi – Completes feasibility study; announces board approval to construct an open pit mine – Gurupi – Closes US$103.5M Senior Convertible Note – Gurupi – Combined resources of 3.1 MozBrazil Resources Inc. ‾ Raises $4.76 million through private placement ‾ Acquires 259,000-acre land package, including the Gurupi Gold Belt And The West African Shield Artulandia property, in Goias State, Brazil Were Previously Connected ‾ Acquires Trinta & Maua properties in the Gurupi Belt; commences exploration 10
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”GURUPI BELT PROJECTS- EXPLORATION OVERVIEW 53,263 acres and three projects in the emerging Gurupi Gold Belt Prospective potential to generate several low grade/near-surface deposits Located near land holdings of companies such as Jaguar, Luna and Kinross Strong infrastructure with road access and electrical connections Paulo Pereira, Vice President – An Abandoned Open Pit That Was Actively Exploration, Beside A Tunnel Used By Artisanal Mined During The “Garimpeiro rush” Starting In Gold Miners At Montes Áureos The Mid-1980s 11
  • TSX-V: BRI OTCQX: BRIZF“The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” Aurizona Mine 3.9 Moz (Production began 02/09/11) Cachoeira Project Cipoeiro (Gurupi Project) 2 Moz (Feasibility Study 02/01/11) Trinta Project Chega Tudo (Gurupi Project) 1 Moz (Feasibility Study Montes Áureos 02/01/11) Project Mauá Project 12
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”ESTABLISHING A STRATEGIC POSITION IN THE GURUPI BELT Chega Tudo Deposit (1 Moz) Cipoeiro Deposit (2 Moz) 13
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” MONTES ÁUREOS PROJECT HIGHLIGHTS Located 20 km southeast of Jaguar’s +3 Moz Gurupi Project Identified 2 km anomalous trend that is on-strike, and comparable, to the footprint of the +1,000,000 oz. Chega Tudo deposit (Gurupi Project) Mineralized intervals intersected in all 21 auger drill holes - including 7m at 2.80 g/t Au at 4m with 1.97 g/t Au. A long history of artisanal mining dating back to the 17th century A Historic Deposit Was Established In The Northern Section Visible Gold Mineralization Of The Property In The 1990s By TVX Gold Extracted From Montes Áureos 14
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”ARTISINAL MINING ACTIVITIES AT MONTES AUREOS 15
  • TSX-V: BRI OTCQX: BRIZF“The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” 16
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”MONTES ÁUREOS DIAMOND DRILLING PROGRAM 3,000-meter program focused on 2km Au- Cu-As anomalous trend and on parallel 600m trend Initial drill targets have been identified through auger drilling results, geochemical sampling and areas of past production Targeting near-surface mineralization Program to commence shortly; results expected in H1 2012 Proposed Diamond Drilling Program 17
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” MONTES ÁUREOS AND TRINTA TRANSACTION: 97% INTERESTBRI can earn up to 97% by completing both phases of the option agreement.Phase 1 for (51%) must be completed by September 2013 and includes: (a) US$25,000 cash payment (paid) (b) issue 325,000 shares (c) exploration expenditures totaling US$1,750,000 (d) keep properties in good standingPhase 2 for (46%) must be completed by September 2015 and includes: (a) pay US$1,000,000; (b) issue 700,000 shares (c) exploration and/or development expenditures of US$3,000,000. 18
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”MONTES ÁUREOS EXPLORATIONPHASES 1 & 2Objectives: Conduct 13,000 m of diamond drilling Extend auger drilling along all identified anomalous trends (2.6 km) Define and expand NI 43-101 resourcesCompletion of Phases 1 & 2 provides BRIwith a 97% ownership stake in the MontesÁureos and Trinta projects. 19
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” TRINTA & MAUA EXPLORATIONObjectives: Obtain geological mapping and conduct soil sampling on both properties Conduct detailed auger drilling over prospective anomalous zones Identify drill-ready targetsInitial auger drilling targets will be located in and around previously minedalluvial gold occurrences 20
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”PIRINEUS PROJECT – EXPLORATION OVERVIEW District-scale land package totaling 259,000 acres in Goias State, where world-class companies such as Kinross, Anglogold Ashanti and Yamana Gold are present Initial exploration results on the recently acquired Artulandia property identified two parallel gold trends approximately 11 km in length Several occurences of historic artisanal gold mining operations Exploration programs scheduled to begin shortly 21
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”PIRINEUS PROJECT – A DISTRICT-SCALE OPPORTUNITY Both gold trends are open laterally in both directions 22
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”PIRINEUS PROJECT – TWO 11 KM LONG GOLD TRENDS Potential Intrusion 23
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” PIRINEUS PROJECTObjectives: Obtain geological mapping and conduct geochemical reconnaissance sampling Identify anomalous zones for further exploration Define drill-ready targets 24
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt” UPCOMING MILESTONES 2012 Q1 2012 Q2 2012 Q3 2012 Q4Montes Áureos 2011 Exploration Program Acquire Initial 2012 Exploration Program 51% Interest Conduct 3,000 m Diamond Drilling Program Announce Initial Drilling Results 10,000 m Diamond Drilling ProgramTrinta & Maua Evaluate Exploration 2011 Exploration Program – Stream/Soil Sampling & Auger Drilling Program Results & Determine Investment Budget Pirineus Evaluate Exploration 2011 Exploration Program – Stream/Soil Sampling & Auger Drilling Program Results & Determine Investment Budget M&A Activities Conduct Due Diligence and Announce Acquisition of Project(s) Continue to Evaluate M&A Opportunities 25
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”CORPORATE & OPERATIONAL 2011 OBJECTIVES Mobilize and initiate exploratory drilling at Montes Áureos to establish a NI 43-101 compliant resource Execute on previously identified acquisition opportunities, including near- term producing assets Enhance outreach to government and local communities on acquisition and exploration activities Raise necessary capital to further our operating plan 26
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”INVESTMENT SUMMARY Technical staff have discovered and developed over 10 Moz in Brazil Management and technical teams have held senior positions with world class mining firms such as BHP, De Beers, Kinross, Rio Tinto, Teck and Uranium Energy Corp Strategically positioned +300,000-acre land package with past informal mining activity on all projects Fully financed for upcoming work programs and near-term growth with over $10 M in cash Drilling results and acquisition related news flow anticipated shortly 27
  • TSX-V: BRI OTCQX: BRIZF “The Newest Brazilian Gold Explorer In The Emerging Gurupi Belt”CORPORATE INFORMATION Head Office: 320-1111 West Hastings St. Vancouver, BC Corporate and Securities Counsel: Sangra Moller LLP 1000-925 West Georgia St. Vancouver, BC General Counsel: McMillian LLP 1500-1055 West Georgia St. Vancouver, BC Auditor: Ernst & Young 700 West Georgia St. Vancouver, BC Transfer Agent: Computershare 510 Burrard St., 2nd Floor Vancouver, BC 28