Brazil Minerals announced that it had signed an agreement with a Brazilian group that will be exploring and processing material for diamonds and gold in one of the Company’s properties. This group will bring its own mini-plant to one of BMIX’s areas; all work will be open for supervision by the Company at all times.
The deal is attractive in that BMIX will have essentially no costs, and in return will receive 25% of the gross production of gold and diamonds. According to announcement marks BMIX’s first royalty agreement. The royalty business model is an established way to monetize, for little to no cost, high quality mineral assets. The Company plans to expand the number of such deals, and is in conversations regarding two other mineral rights it owns.
In other news, BMIX successfully tested a portable centrifuge for extraction of fine gold. The target material used in the test was the post-processing sandy waste from the main plant, i.e., material that had passed through in either the “gold-recovery circuit” or the “diamond-recovery circuit” of the plant. From this waste, the centrifuge recovered an average of 2 grams of pure fine gold per cubic meter, a higher result than expected by the Company.
This finding clearly demonstrates that centrifugation is superior to spiral gravity concentration, the method employed in the recovery plant. This result also appears to indicate that portable centrifuges will be a highly efficient way to extract fine gold from both the Company’s large availability of virgin alluvial sands as well as past previously processed material.
As described in the Company’s prior announcement, the focus is on lower cost, possibly higher return, portable, modular and scalable recovery units for gold and diamond.