Projects
Agriculture
Brazilian Resources, through its subsidiary BrasAgro, is finalizing the construction of its first Limestone Project known as Petrocal located in one of Brazil's largest agricultural states, Mato Grosso.BrasAgro plans to produce and sell agricultural limestone to customers in the nearby region. The expectation is to build mining operations and seek the acquisition of similar properties with the intent of consolidating within the sector and having a long-lived asset generating significant cash flow.
The Company updated its feasibility study on the Petrocal Project, which was filed on SEDAR in November, 2011. The feasibility study, which is NI 43-101 compliant, is an update to a technical report prepared in 2010.
Based on the technical report prepared by Pincock Allen & Holt Brasil and as filed on SEDAR, the Itiquira Project now contains estimated indicated mineral resources of 65.7 million metric tons (reserves included), an increase of 38.7 million metric tons or 143% above the resources estimated in the 2010 technical report as filed on SEDAR. The increase is based on data obtained from a 2010 drill program, which totaled 671 meters.
Proven and probable reserves in the PAH technical report are now estimated at 35.7 million tons based on a blended (high-grade and medium-grade) salable product, sufficient to sustain operations for at least 30 years at the current design rate of 1.0 million metric tons per year. In addition, the PAH technical report estimated the Itiquira Project contains additional inferred resources of 158.3 million metric tons of which 126.0 million metric tons would be salable (a blend of high-grade and medium-grade ore). PAH also believes there is additional exploration upside in the adjacent mineral concessions owned by the Company.
The Company also acquired a second limestone property it has acquired in the State of Rondônia, Brazil, where it intends to conduct initial exploration activities during 2012 and will be integrated into a pre-feasibility study that the Company intends to develop during 2012.