Brazil Resources Inc

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Brazil Resources Inc

Postby Pixel8r » Fri Sep 02, 2016 9:44 pm » Safari 9.1.2 Safari 9.1.2  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

I'm wondering anyone is following the much hyped BRI?

http://brazilresources.com

My first impression is that it is a pump and dump case. :problem:

They seem to be buying loads of properties which have had millions spent on them but all appear to be very low grade >0.9g per tonne. There is a lot of big names involved like Doug Casey & Rick Rule. It seems the whole case is built around buying cheap low grade gold in the ground, they are approaching 10 million oz. Yes they have a lot of gold but it will cost a fortune to actually start mining and would also need a lot higher gold prices to make them viable. Too pie in the sky for me.

Here's part of the hype on KWN.



Another that has been hyping BRI is Daniel Ameduri from Future Money Trends. It just reminds me of the time when he was involved with NIA (http://inflation.us) and the proved pump and dumps that were going on there back in the day when Jonathan Lebed was running it - http://www.trade.education/national-inf ... on-review/

Watch on youtube.com


Buyers beware.

I like EDV's model which is similar but much better IMO. Buying cheap operating (or very close) mines and optimising them, that way they still get to grow quickly but have cash flow and mined ounces. 600k oz of production this year with a path to 900k oz in 2018.
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(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Brazil Resources Inc

Postby JIMBOWEN » Wed Dec 14, 2016 8:13 pm » Safari Mobile 8.0 Safari Mobile 8.0  iPad iPad  Screen Resolution: 768 x 1024 768 x 1024

I think Brazil Resources (now called Goldmining Inc with the ticker GOLD!) is anything but a pump and dump case. I spoke to the CEO - Amir Adnani at the Mines and Money conference in London the week before last. He owns a truck load of shares and the stock does have some powerful backers like Rick Rule, Doug Casey and Marin Katusa. I think the business model is excellent. I also spoke to Patrick Donnelly at First Mining Finance. Another great business model imo and have Keith Neumayer involved. I have taken decent positions in both over the last week, along with a couple of other companies.

Will post more when I have a moment.
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Re: Brazil Resources Inc

Postby Pixel8r » Fri Dec 16, 2016 12:44 am » Safari 10.0.1 Safari 10.0.1  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Do you think that the reserves are economically viable? Seems like lots of low grade sites to me.
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Re: Brazil Resources Inc

Postby JIMBOWEN » Fri Feb 03, 2017 9:53 pm » Safari Mobile 8.0 Safari Mobile 8.0  iPad iPad  Screen Resolution: 768 x 1024 768 x 1024

Pixel,

Sorry to take ages replying.

I did ask the CEO (Amir Adnani) at mines and money about this but there haven't been any Feasibility studies done on the deposits. Although the grades look low they would be bulk tonnage and the company presentation highlights the existing infrastructure that's already in place. These are large resources, so they could well be economic - of course higher gold prices would definitely help. The Colombian deposit looks particularly interesting imo. Goldmining is cashed up with over $20m of cash. If gold dips again, they will look at buying more cheap ounces. I think it's a great strategy and when gold eventually moves higher they will have a lot of options. I definitely don't think this is a pump and dump company. Worth highlighting that they also have a 75% stake in a uranium company.

Here's a recent video with the CEO..

http://www.commodity-tv.net/c/mid,5428, ... /?v=297293

Whilst on Uranium, I'm very bullish on the longer term prospects and Adnani also runs Uranium Energy Corp (UEC). I've just bought a stake in this as I can a lot of upside long term. There's another presentation on commodity-tv.net
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Re: Brazil Resources Inc

Postby Pixel8r » Sat Feb 04, 2017 12:04 am » Safari 10.0.1 Safari 10.0.1  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

Hi Jim,

Thanks for the reply. I am wary of vast cheap metal in the ground because I have been burnt by it once before. It sounds really atractive but IMO there is a reason that these properties are coming on to the market cheap. Yes eventually it could make a lot of sense if metal prices go through the roof, but then there will also be a lot of very profitable miners around anyway actually mining their metal.

I like the idea of mineral banks but also think the royalty model may be the better way to attack this?
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Re: Brazil Resources Inc

Postby JIMBOWEN » Wed Feb 08, 2017 2:42 pm » Safari Mobile 8.0 Safari Mobile 8.0  iPad iPad  Screen Resolution: 768 x 1024 768 x 1024

Understood Pixel. I don't think any of these deposits require gold to go through the roof. What stands out is the CEO (Amor Adnani) has huge skin in the game and owns a lot of shares. They also have some big financial backers including BrasilInvest. In addition they are cashed up. I only have around 4% of my portfolio in it, but it's a potential multibagger imo.

Other PM stocks I'm very bullish on are Auryn Resources, first mining finance and Sandstorm gold.
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Re: Brazil Resources Inc

Postby JIMBOWEN » Thu Feb 16, 2017 6:49 pm » Safari Mobile 8.0 Safari Mobile 8.0  iPad iPad  Screen Resolution: 768 x 1024 768 x 1024

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Re: Brazil Resources Inc

Postby Pixel8r » Thu Feb 16, 2017 11:32 pm » Safari 10.0.1 Safari 10.0.1  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

The more I read about this company the more I don't like the risk involved. Low-grade gold in the ground run by a team with no experience building mines, what could possibly go wrong?
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Re: Brazil Resources Inc

Postby JIMBOWEN » Thu Feb 16, 2017 11:39 pm » Safari Mobile 8.0 Safari Mobile 8.0  iPad iPad  Screen Resolution: 768 x 1024 768 x 1024

I understand that Pixel but I don't think they develop all these mines themselves. I think they will sell individual deposits to other companies. The CEO said he'd been approached by other companies but he is not a seller at current gold prices and wants to build the company up. He has a good track record and they have storng financial backing, so I think they will be successful.
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Re: Brazil Resources Inc

Postby Pixel8r » Wed Apr 26, 2017 4:11 pm » Safari 10.0.3 Safari 10.0.3  Mac OS X Mac OS X  Screen Resolution: 2560 x 1440 2560 x 1440

JIMBOWEN ยป Thu Feb 16, 2017 11:39 pm wrote:I understand that Pixel but I don't think they develop all these mines themselves. I think they will sell individual deposits to other companies. The CEO said he'd been approached by other companies but he is not a seller at current gold prices and wants to build the company up. He has a good track record and they have strong financial backing, so I think they will be successful.

The big problem for me is the fact that all their properties are showing very low grades of gold in the ground. Here is their latest resource report, which shows their average of measured and indicated is a paltry 0.57 grams per tonne on stated amount of 10.42 Moz. The reason that they are not selling those properties now is that they are waiting for higher gold prices. I would say that they would need a lot higher gold prices before these properties showed any sign of being financially viable to turn into a mine.

Image

For comparison look at Pretivm's Brucejack mine, they have an 8.1Moz @ 16.1 g/t gold which is going into commercial production this year.
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