SOURCE: Brazil Minerals, Inc.

Brazil Minerals, Inc.

July 01, 2013 08:30 ET

Brazil Minerals, Inc.'s Duas Barras Diamond Mine Increases Sales of Rough Gems 155% Quarter to Quarter

SAO PAULO, BRAZIL--(Marketwired - Jul 1, 2013) - Brazil Minerals, Inc. (OTCQB: BMIX) (the "Company" or "BMIX"), a diamond and gold producer with resources and assets in Brazil, today announced that its 55% owned subsidiary, Mineração Duas Barras Ltda. ("Duas Barras"), sold 155% more carats of rough diamonds in the second quarter ended June 30, 2013, as compared to the first quarter of 2013. Duas Barras sold 354.00 carats of rough diamonds in the first quarter of 2013, and it sold 902.10 carats of rough diamonds in the second quarter of 2013.

For the second quarter, the average price realized on rough diamonds sold from Duas Barras was within a few percentage points of the average price realized for sales in the first quarter of 2013. BMIX will report its second quarter 2013 financial results as part of its 10-Q to be released on or before August 15, 2013. Following such release, BMIX intends to host its first earnings conference call to discuss its second quarter and six-month results. Announcement of the date and time of the earnings call will be provided in press before the call.

Marc Fogassa, Chairman and CEO, commented, "We expect the positive trend in production growth to continue. The Duas Barras barge operation began in June and is being optimized; we expect such dredging efforts to retrieve diamondiferous gravel, at times from under 50 feet of water, to contribute meaningfully to our production in the coming quarters. On the revenue side, it should be noted that the Duas Barras mining concession has indicated and inferred carats and alluvial gold for years of production ahead. On the cost side, Duas Barras remains competitive; it has 13 employees, pays good local wages, and its employee costs are reasonable at approximately $11,000 per month," added Fogassa. "Very recently, the Duas Barras team has been able to reach a lower depth of diamondiferous gravel extraction in one location allowing for an average daily diamond production rate significantly higher than the daily average to date," Fogassa concluded.

While the Company will continue to focus on selling rough gems for the great majority of its production, BMIX's plan is to begin sales of some cut and polished diamonds from Duas Barras by the end of the third quarter. Sales of such cut and polished diamonds will have substantially higher margins Brazil Minerals, Inc. 

The Duas Barras mine benefits from the largest alluvial diamond and gold processing plant in Latin America, built at a cost of over $2.5 million USD by a previous owner of the concession. Its location is on the Jequitinhonha River bank, in the state of Minas Gerais, a well-known area for alluvial diamonds.

The Company has not performed any geological studies in the Duas Barras mining concession, but has relied on the report entitled "Technical Report Duas Barras Diamond Project, Brazil, Presenting Details of Diamond Resources Compliant with Canadian National Instrument 43-101" issued by Qualified Person and Professional Geologist Paul J. Daigle, Senior Project Geologist at Vaaldiam Resources, Ltd., on March 30th, 2007." The Duas Barras NI 43-101 is on file with Canada's securities commission at, a copy of which can also be accessed online at

The Duas Barras NI 43-101 contains on its page 9 the table of resources listed below.

Mineral Resource   Volume (m3)   Diamond Grade (cts/m3)   Diamond Content (carats)   Fine Gold Grade (mg/m3)   Fine Gold Content (kg)
Indicated   1,843,000   0.16   295,000   182   335
Inferred   856,000   0.16   137,000   182   156
TOTAL   2,699,000   0.16   432,000   182   491

About Brazil Minerals, Inc.

Brazil Minerals, Inc. (OTCQB: BMIX), a U.S. corporation, is a diamond and gold producer with resources and assets in Brazil. Its mining assets include a 55% ownership in Duas Barras, a diamond and gold producing mine located in the state of Minas Gerais. BMIX is also exploring for gold in the state of Amazonas, and has a healthy pipeline of other sizeable opportunities throughout Brazil. Its Brazilian headquarter is in São Paulo, the financial hub of Latin America, with an operational office in Belo Horizonte, the capital of Minas Gerais, a name that means "General Mines", and serves as reminder of the strength of that region of Brazil for natural resources. More information on BMIX, including an investor presentation, can be found at

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Brazil Minerals, Inc.'s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Brazil, general economic conditions; geopolitical events and regulatory changes, availability of capital, the BMIX's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

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