As the world’s consumers get richer they want to show everyone…and that means diamonds. Brazilian alluvial sourced diamonds have historically been large enough for jewelry…and BMIX intends to monetize its diamond reserves via...
Initiating Coverage Brazil Minerals (BMIX)
Initiating Coverage Brazil Minerals (BMIX)
Current Share Price: @ .60
Outstanding Shares: 69,963,435
Short Term Target: $2.50 DPV of Diamond and Gold Reserves
As the world’s consumers get richer they want to show everyone…and that means diamonds. Brazilian alluvial sourced diamonds have historically been large enough for jewelry…and BMIX intends to monetize its diamond reserves via wholesale and direct-to-consumer marketing.
At this valuation investors are getting what could be a major gold reserve for essentially FREE...we like that kind of risk reward basis.
Investment Thesis: Diamond Demand/Pricing Have Secular Growth Demand with Major Supply Constraints Beginning late 2013-2014
A) Worldwide consumer demand and pricing for high quality polished diamonds continues to grow at high single digits especially in India and China. At the same time…
B) Primary diamond mines in Canada/Russia and Africa have exhausted their open pit resources and are converting to high cost underground operations.C) Brazil Minerals is a currently producing alluvial play (i.e. ground surface) on high quality diamond mining and production and an opportunistic play on 3 million+ ounces of recoverable gold in Brazil.
D) The management team led by CEO Dr. Marc Fogassa who has put together an extraordinarily experienced and connected Board of Directors to exploit the extremely favorable political climate for entrepreneurial resource development in Brazil.E) Brazil Minerals intends to explore opportunities for shareholders to directly participate in diamond production and polishing via potential direct-to-shareholder sales of high quality polished diamonds at 50%+ discounted prices. BMIX also intends to pay a dividend and could pay diamond dividends paid directly to shareholders holding a minimum threshold of shares.
BMIX Property Duas Barras:
Upon completion of the acquisition announced in the March 28, 2013 8-K, BMIX will increase its ownership from an 11% to a 55% majority interest, becoming the operator of one of Latin America’s largest producing alluvial gold and diamond plants. Located in Duas Barras Brazil, it was built by former owner Vaaldiam Resources in 2006–2007.
Vaaldiam Resources filed a 43-101 on Brazil Mineral’s Duas Barras property and assessed 35 hectares of the 170.89 hectare property (@20.5%). The assessed portion of the property was found to contain:
432,000 of Diamond carats (INDICATED + INFERRED)
491 kg of Gold (INDICATED + INFERRED)
The 43-101 performed by Vaaldium Resources indicates an average carat price of $197
Borba:
BMIX’s second asset, a high potential gold property known as the Borba Project, is located in the Amazon region of Brazil in an area considered to be in a geological gold belt formation. The exploration permit for this area allows research to be performed in it until December 4, 2015, with an extension for an additional 3 years possible and commonly obtained under current regulations. If research performed by BMIX in this area leads to a mining concession for gold, such right would be perpetual, under current law, provided that continuous mining occurred in the area.
This area has primary gold deposits and gold nuggets are found embedded in clay within as little as one meter underground. BMIX is currently developing an initial geological evaluation plan for this property.
Click here to see the full report on Brazil Minerals (BMIX).
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Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
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