DGAP-News

Brazil Resources Announces Results From Technical Report On Its Rea Uranium Project, Western Athabasca Basin - Seite 2

nickel, arsenic, boron and vanadium), features commonly associated with
unconformity-type uranium deposits. The recommended drill holes (approx. 6
holes totaling 2,600 m) will test below these historic holes closer to the
intersection of the MRSZ and the unconformity separating the Athabasca
Basin sedimentary rocks and the underlying Archean basement. Most of the
uranium mineralization discovered to date in the Athabasca Basin is located
at or near the unconformity, where it is cut by a re-activated basement
shear zone. The West Zone target is an airborne EM conductor located 1.5 km
west of the Maybelle deposit and sub-parallel to the MRSZ. The recommended
program will include a ground EM survey to better define the location of
the airborne EM conductor and will be followed-up by diamond drilling.

Historic exploration programs were completed by a number of companies
including Eldorado Nuclear Ltd. and Uranerz Exploration and Mining Limited
("Uranerz") from the mid-1970's to the late-1990's on ground now covered
mostly by the Rea and Maybelle River Project. The programs included various
geochemical surveys (lake, stream and soil), boulder prospecting, airborne
and ground geophysics and diamond drilling that led to the discovery of the
relatively shallow, high-grade Maybelle deposit by Uranerz in 1988. Since
that time, most of the ground was allowed to lapse by prior owners, except
for a small strip of permits covering the north-northwest to southeast
trending MRSZ that hosts the Maybelle deposit.

In 2005, a large land package surrounding the Maybelle River Project was
acquired by Brazilian Gold Corporation ("BGC") and subsequently optioned to
UraMin Inc. in 2006; UraMin Inc. was purchased by Areva in 2007 and BGC was
acquired by Brazil Resources in 2013. Historic exploration programs
completed on the Rea Project during the period from 2005 to 2012 by prior
operators included: airborne magnetics, EM and gravity surveys, ground EM
and induced polarization (IP) surveys, and diamond drilling (8 holes
totaling 1,908 m). The programs were successful in mapping the northern and
southern continuation of the MRSZ (EM conductor high), which hosts the
Maybelle deposit, onto the Rea Project as well as several parallel
conductors to the west and east of the MRSZ, which are considered
prospective for uranium mineralization. The Company and previous owners
have not completed sufficient work to date to identify economic uranium
mineralization at the Rea Project. Due to the historic nature of prior
exploration programs and results and the lack of full quality assurance and