For start, Brazil is a mining friendly country and it has a number of world class deposits of gold, spread through its vast territory. According to government data posted in the DNPM site (National department of mineral production), only 1,27% of its ore reserve was explored. Given the country’s mining culture, its international standard and transparent mining code system, stable political and fiscal structure, Brazil is a first rate candidate for investment in mineral exploration! Brazil also has great quantities of other metals such as: iron ore, nickel, manganese, copper and bauxite, palladium and other rare earth compounds. Also note that Brazil was the World’s leading gold producer since colonial times.
However, Brazil economy in 2015 has devaluated the national currency, the Real R$. This has devaluated many of the mining projects making them attractive for investors. Many of the mine claim owners have understood the reality of the mining business and have dropped their asking prices. Now is the best time to engage them and get all you can at the best terms possible.
However, there are some pitfalls to investing in Brazil. Brazil has a VERY currupt system that forces many companies to pay bribes in order to operate “within the law”. To avoid this problem, investors are advised to take on projects with all the licenses pre-approved. Regardless of that, if you managed to get a project with all the licenses, once it starts operating, it will be worth your while.
Brazil has one of the largest gold reserve in the world. The majority of it is located in the north of Brazil, mainly in the Amazon region and in states such as Pará, Amazonas, Macapa, Minas gerais, Rondonia and Acre. Brazil has also huge reserve of tailing piles spread in various states. These tailings are still loaded with gold and can be recovered with a special mining process that does not require rock crushing or digging into rocks (which make the mining processing more expensive). Instead, the tailings can be loaded into a special plant and recover as much as 0,5-1 gram per ton. To know more about the gold mining opportunity of the tailings piles, read the executive summary of the Salinas project.
In 1958 a prospector found gold in one tributary of the Tapajos River. This discovery had triggered the largest gold rush in Brazil’s history. In a few years the region was flooded with more than 250.000 gold prospectors. These men started a major gold exploration, panning most of the streams in the region. A second major gold rush occurred in the 1970s and 1980s when garimpeiros (artisan or informal miners) were producing gold from mainly alluvial sources. A legacy of this Colonial and garimpeiro activity has been the location of numerous auriferous systems, many of which remain untested for their potential for hard rock gold resources.
Although most of the major multinational mineral companies are operating in Brazil, there are comparatively few junior companies involved in Brazilian exploration. To see our current project see the “Executive Summaries” section of this site.