Brazil Minerals Inc (OTCMKTS:BMIX) reported that J. Francescatto, Senior Geologist and his team had concluded the first stage of geological evaluation in a dry area for gold and diamonds near a margin of the Jequitinhonha River in Minas Gerais in Brazil.

The update

Brazil Minerals said that total six holes were drilled and there was space of 50 meters between two holes. The average depth of holes was 12.6 meters. The distance between the two farthest holes was 250 meters. The holes showed demonstrated presence of different depths of commercially-viable gravel comprising gold and diamonds. As per Francescatto, there is continuity of such type of gravel layer within the line drilled. The researched space is small versus the total surface region of this mineral right, which measures 1,310 acres.

The plans

Brazil Minerals stated that as per prior communications, the company is conducting relatively inexpensive but focused research to decide ideal sites for future mining pits. The company own drilling equipment as well as field team, which reduces cost considerably. It controls or own eleven mining concessions and seventeen other mineral rights, all based in Brazil

The objective

The primary objective of this plan is to identify sites with the superior quality of diamondiferous gravel. However, it is vital to mention that gold fundamentally always comes out together with diamonds in such deposits. The comparative concentrations between gold and diamonds vary widely as per local geological characteristics. While the results stated are strong, and have determined probable initial mining locales, Brazil Minerals cannot make assumptions about the point to which comparable results will be witnessed for the remainder of large mineral space, or that prolonged and substantial revenues from gold or diamonds will be extracted from this particular area.

In last trading session, the stock price of Brazil Minerals Inc (OTCMKTS:BMIX) surged more than 83% to close the trading session at $0.00110.