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Mining

Brazilian Metals encouraged by initial drill results at Rio Pardo Iron Project in Brazil

Brazilian Metals Group (ASX: BMG) is progressing with a drilling program testing strong aeromagnetic anomalies at its Rio Pardo Iron Project in northern Minas Gerais State, Brazil.

BMG has employed two reverse circulation drilling rigs with rotary air blast (RAB) support for an initial 10,000 metre program. Drilling is ongoing at the Josilene (North and South), Sem Terra and Teiu targets on a wide spaced pattern and results have been encouraging.

Results include:

- 94 metres at 16.32% iron (Fe) from surface in JORC006 including 64 metres at 17.21% Fe from surface

- 120 metres at 14.97% Fe from surface in JORC005

- 121 metres at 14.13% Fe from surface in JORC013

In addition, Hole JORC003 with partial assay results completed, returned 36.22% Fe over 4 metres from 128 metres. All of the holes ended in magnetite bearing diamictite at the limit of drilling.

The iron bearing material at Rio Pardo is similar in nature to the other deposits in the province such as Salinas.

The Salinas project, located adjacent to Rio Pardo, has a mineralised JORC Resource estimate of 338.9 million tonnes (Mt) at 20.1% Fe in the Measured Category, 1,711.1Mt at 20.4% Fe in the Indicated Category and 409.5Mt at 17.4% Fe in the Inferred Category in two blocks.

Th company plans to commence a program to drill Scorpion West and Scorpion East next week followed by Tower, Vargam Grande and Montezuma, all of which are aeromagnetic targets.

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