(MENAFN- ProactiveInvestors)
() has commenced an Induced Polarisation program to fine tune drilling targets on its Plato and Guida tenements which are within its Juma East project in Brazil.
The project is in the Apuí region Amazonas State which 15 years ago had only 5000 inhabitants and has now grown to 20000.
The region shot to fame about a decade ago after rumours of the discovery of a "new Eldorado" which attracted thousands of artisanal miners - known as garimpos in Brazil.
Historically in the area WMC Resources established a greenfields exploration program targeting iron ore copper and gold and since then the area has developed with major hydroelectric plants built in nearby Rondonia State.
There are also power lines to supply energy to Apui that run close to BBX's Juma East targets.
Adding further to infrastructure and logistics the Trans-Amazonian Highway is not far away with supporting dirt road infrastructure.
BBX has hosted drilling companies at site and expects to award the tender early August.
Construction of the exploration camp is expected to be finished on schedule.
Goldmen provides gold potential
Adding interest to is the recent Technical Services Agreement with Goldmen Group to enable development if viable of a low capex mining operation.
The operation is located 20 kilometres north of BBX’s Juma East tenements and its Plato and Guida drilling targets and therefore could provide economies of scale in the future.
BBX has now been provided with initial geophysical and geological data and location of garimpos (artisanal workings) to enable the due diligence to commence.
One of the key targets of BBX’s due diligence will be the saprolite (weathered rock) and an extensive underlying gold-bearing gravel horizon.
BBX is already investigating gravity plants that could be used for the project but there is an additional benefit.
These plants could also be utilised at the extensive old workings on BBX’s wholly-owned Ema and Juma East tenements to further expand its production capability.
Gold recovered by garimpeiros from treating soil and saprolite.
Historically mined
The old workings within these leases known as Garimpo Vacora are located 10 kilometres northwest of the Rio Branco airstrip have been intermittently mined by rudimentary methods for the past 15 years.
Gold in the garimpo is usually coarse and hosted in the matrix of an altered reddish conglomerate.
The project will be based on four mineral rights controlled by Goldmen group and fully licensed at the DNPM and IPAAM.
The four mineral rights are valid until 28 May 2016 and renewable annually and environmental approval valid to December 2015 also renewable annually.
Analysis
is placed as a “first mover” in a highly prospective region of Brazil where there is known gold.
The Apuí region shot to fame about a decade ago after rumours of the discovery of a "new Eldorado" which attracted thousands of artisanal miners - known as garimpos in Brazil.
Shares in the company last traded at $0.014 around double where they were just a couple of weeks ago but considering the market cap. of circa $2.5 million of which 20% is cash the company is leveraged to exploration and deal success.
Upcoming key catalysts:
- Juma East drilling in Q3 with results to follow.
- Progression of due diligence with Goldmen.
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