Gold Mining Stocks

Special ReportThe Companies Behind the Single Largest Gold Rush in History...

FIVE Times Larger than the 1849 California Gold Rush...

And it's Still Under Development!

The Amazon Rainforest is truly one of the world's greatest and most awe-inspiring natural resources.

The immense 1.4 billion acre South American tropical rainforest produces over one fifth (20%) of the Earth's total oxygen content.

More than a third (33%) of all the world's various animal species live in the Amazon Rainforest, including over 500 species of lizards and reptiles, over 800 species of mammals, and over 1,500 species of birds. The rainforest is also home to nearly 80,000 distinct species of plants and an estimated 30,000,000 types of insects.

It's likely that three quarters (75%) of your fruit and vegetable diet is native to rainforests like the Amazon. Native rainforest plants include; fruits like oranges, lemons, grapefruit, coconuts, bananas, pineapples, mangoes and tomatoes; vegetables including corn, potatoes, rice, and yams; spices like black pepper, cayenne, chocolate, cinnamon, ginger, sugar cane, coffee and vanilla; and nuts including Brazil nuts and cashews.

Meanwhile, over one fourth (25%) of all Western pharmaceuticals are derived from plant ingredients found in the tropical rainforests. And the prospects for finding new cures and drugs to treat all human illnesses from plants in the Amazon Rainforest remains wide open. 99.9% of all plants estimated to grow in the Amazon Rainforest remain untested by scientists.

With such a cornucopia of spectacular natural resources it's no wonder that the Amazon region also yields the greatest and most divine of man's riches: Gold!

The Great Guiana Shield 

Historic records show that mining for gold from surface deposits began in the Amazon region as early as the 16th century. Since that time, it's estimated that over 50 million ounces of gold have been extracted from the Amazon.

Most of the gold that was historically discovered was in placer deposits. Old mine workings—called garimpiero pits or garimpos—can be found all throughout Amazonia at easily accessible locations near the coasts and major rivers.

After the early pioneers that worked these mines exhausted the bulk of gold alluvium from a deposit, they would explore the immediately surrounding area for further mineralization. However, difficulties resulting from very remote locations, limited technology, deficient investment, and political instabilities kept the region from full exploration and understanding of its resources until fairly recently.

In the late 1970s, Brazil's military government conducted a sweeping aerial survey of the region. As a result, they helped to confirm the presence of the Guiana Shield, a massive two billion year old geological formation, which has been historically known to contain prolific gold resources.

The Amazonian Guiana Shield is actually the other half of Africa's Guiana Shield, which is responsible for the abounding gold and platinum wealth of South Africa and other countries in sub-Saharan Africa. Sometime during the Jurassic period—about 135 million years ago—the once whole Guiana Shield was split into two as plate tectonics tore one large land mass into two. Today we call these two parts South America and Africa.

To get a better understanding of how the Guiana Shield once fit together, take a look at the geologic provinces map of the earth below...

You can easily see how South America's Guiana Shield (highlighted in orange) once fit onto Africa.

Today the Amazonian Guiana Shield covers over 100 million acres of jungle and savanna and is the site of a monumental—and still developing—gold rush.

Estimates suggest that 1.5 million explorers have ventured to South America's Guiana Shield seeking gold. Compare this to the 300,000 men, women, and children who migrated to the California hills between 1848 and 1855.

Modern estimates by the U.S. Geological Survey suggest that 12 million ounces of gold were removed during the first five years of the California Gold Rush. This is significantly lower that the estimated 50 million ounces of gold that have been recovered from the Amazonian Guiana Shield.

The latest estimates show that there are still over 500,000 explorers and miners, including several publicly-traded gold mining companies, currently seeking gold fortunes in the Amazon region.

Over the past few decades, the development of better and more reliable technology, and two significant gold bull markets—which have pushed prices 2,851% higher since 1970—has greatly stimulated investment into exploration and development of gold resources in the Amazonian Guiana Shield. As a result, gold production has recently become a major source of income for several countries in the Amazon region, especially Brazil, which has now become one of the world's top five gold producers.

Brazil and Gold Mining Stocks

After a long period of severe macroeconomic instability—resulting in very high rates of inflation, mediocre and intermittent growth of GDP and stagnation of per capita income—a successful stabilization program has restored Brazil to the list of dependable economies.

Brazil is now the world's tenth largest economy at market exchange rates and the ninth largest in purchasing power with large and developed agricultural, mining, manufacturing and service sectors, as well as a large labor pool. The country has been expanding its presence in international financial and commodities markets, and is regarded as one of the group of four emerging economies called BRIC.

BRIC

In 2003, Jim O'Neill, global economist at Goldman Sachs, proposed that the economic potential of Brazil, Russia, India, and China [BRIC] is such that they may become among the four most dominant economies by the year 2050. The BRIC thesis—defended in the paper Dreaming with BRICs: The Path to 2050 —predicts that China and India will become the dominant global suppliers of manufactured goods and services while Brazil and Russia will become similarly dominant as suppliers of raw materials. Cooperation is hypothesized to be a logical next step among the BRICs because Brazil and Russia together form the logical commodity suppliers to India and China.

Brazilian exports are booming, creating a new generation of tycoons. Major export products include aircraft, coffee, automobiles, soybean, iron ore, orange juice, steel, ethanol, textiles, footwear, corned beef and electrical equipment.

The country is also energy independent. As part of a 30+ year alternative energy campaign that has implemented the majority use of hydroelectric power to generate electricity and outfitted automobile filling stations with ethanol-based fuels, Brazil must no longer rely on foreign sources to meet the country's energy needs.

In alliance with a 1995 foreign investment law that began allowing offshore companies to hold a 100% ownership in mineral properties, and new ordinances that expedite the operating and environmental permitting process, these social and economic reforms have successfully attracted new investment and diversified Brazil's mining industry .

Brazil's mining sector, particularly for gold, is currently going through a phase of real growth. New mine projects and expansions in progress are expected to ensure that Brazil retains its leading position in global mineral production for years to come.

Last year, Brazil's National Department of Mineral Production published estimates that showed the country produced approximately 40 tonnes of gold in 2006, recording an increase of 4.5% as compared to 2005. (Data from 2007 is still pending.)

According to official figures from the National Department of Mineral Production, Brazil's gold reserves are assessed at approximately 1.720 tonnes and distributed mainly throughout the states of Minas Gerais and Pará. And with over 2,500 currently known gold occurrences, Brazilian gold exploration, development, and production is expected to continue increasing significantly in the foreseeable future.

These increases are expected to occur mainly as a result of financing from cash heavy publicly-traded companies. I've dedicated the remainder of this report to talk about several of the publicly-traded mineral companies with Brazilian gold exposure. Let me start with the big boys.

Large-Cap Brazilian Gold Mining Companies

AngloGold Ashanti is one of the world's leading gold producers, operating in eleven countries and listed on five stock exchanges. The company produced 5.5 million ounces of gold in 2007—an estimated 7% of global production—making it the third largest producer in the world.

AngloGold Ashanti is not exclusively focused on Brazilian gold production. But the company does has two significant gold assets in Brazil, named the Brasil Mineração and Serra Grande mines. Together these mines contain 2.9 million ounces of gold reserves and 11.8 million ounces of gold resources. In 2007, the company's

BRIC

In 2003, Jim O'Neill, global economist at Goldman Sachs, proposed that the economic potential of Brazil, Russia, India, and China [BRIC] is such that they may become among the four most dominant economies by the year 2050. The BRIC thesis—defended in the paper Dreaming with BRICs: The Path to 2050 —predicts that China and India will become the dominant global suppliers of manufactured goods and services while Brazil and Russia will become similarly dominant as suppliers of raw materials. Cooperation is hypothesized to be a logical next step among the BRICs because Brazil and Russia together form the logical commodity suppliers to India and China.

AngloGold Ashanti Ltd. • NYSE: AU, ASX: AUY Market Cap: US$9.03 billion

AngloGold Ashanti is not exclusively focused on Brazilian gold production. But the company does has two significant gold assets in Brazil, named the Brasil Mineração and Serra Grande mines. Together these mines contain 2.9 million ounces of gold reserves and 11.8 million ounces of gold resources. In 2007, the company's combined Brazilian operations produced nearly 500,000 ounces of gold.

Last year, AngloGold Ashanti increased gold production to 317,000 ounces at the company's wholly-owned Brasil Mineração complex. Gold output was boosted by the commissioning and start-up of a new expansion project, which is expected to add six years to the life of mine. During the first quarter, however, production from the Brasil Mineração complex was down 21% due to a lower grade of ore that was mined. The Brasil Mineração complex has 2.5 million ounces of gold reserves and 10.9 million ounces of gold resources.

AngloGold Ashanti and Kinross Gold are 50/50 joint partners in the interest of the Serra Grande mine. Gold production at Serra Grande decreased by 6% last year to 182,000 ounces, again chiefly due to the lower grades mined. A decrease in gold production from Serra Grande is expected again this year. AngloGold Ashanti estimates gold production of up to 174,000 ounces from the Serra Grade mine in 2008. Serra Grande is host to 866,000 ounces gold reserves and 1.8 million ounces of gold resources.

Kinross Gold is another world-class gold mining company with nine significantly producing gold mines in four countries including the United States, Chile, Russia, and Brazil. In 2009, Kinross produced 2.23 million ounces of gold. The company expects to increase production by 2009 to 2.7 million ounces per year.

Like AngloGold Ashanti, Kinross is also not exclusively focused on gold production in Brazil. However, the company does have a 50% stake in the Serra Grande mine and a 100%-ownership of the Paracatu mine.

The Paracatu mine is a bulk-tonne, open-pit operation that began production in 1987, with a mine life projected to extend to 2040. An aggressive drilling campaign at Paracatu in 2005 resulted in an 80% increase in reserves. Gold reserves at Paracatu now total over 18 million ounces, making it one of the largest gold mines in the Western Hemisphere. In 2007, the Paracatu mine yielded 174,987 ounces of gold. Kinross plans to nearly double production this year to up to 335,000 ounces.

Yamana Gold is another company that's not a Brazilian gold pure play. But the company is more focused on projects in South American than AngloGold Ashanti or Kinross Gold. Yamana is a growing producer of gold and other precious metals and copper with several exploration- and development-stage properties in Argentina, Chile, Mexico, Central America, the United States, and Brazil. The company is targeting sustainable production of approximately 2.2 million gold-equivalent ounces in 2012.

Yamana's three principal Brazilian gold projects include the wholly-owned Chapada, Jacobina, and São Francisco properties. Together these properties contain 4.8 million ounces of gold reserves and 9.5 million ounces of gold resources and are expected to produce up to 450,000 ounces of gold this year.

The Chapada operation includes an open-pit gold/copper mine with milling facilities, which is currently processing about 16 million tonnes of ore per year, that produce a gold/copper concentrate. Concentrate is shipped to third party smelters for processing into copper and gold metal. Continuous operations began in mid-November 2006, and commercial production was declared in February 2007. Production from Chapada for 2008 is estimated to be up to 175,000 ounces of gold and up to 160 million pounds of copper. Production is expected to increase to approximately 200,000 ounces of gold per year by 2012. The Chapada mine project contains 2.4 million ounces of gold reserves and 1.6 million ounces of gold resources.

Jacobina is an underground mine that is expected to be producing at the annualized level of up to 145,000 ounces in 2008, and increasing up to 190,000 ounces in 2009. Jacobina is host to 1.2 million ounces of gold reserves plus 6.1 million ounces of gold resources.

São Francisco is an open-pit, gravity heap leach gold mine located in the extreme western portion of the state of Mato Grosso. Yamana declared commercial production at São Francisco effective August 2006. Planned production for 2008 is expected to be up to 130,000 ounces of gold. The São Francisco project contains 1.2 million ounces of gold reserves and 1.8 million ounces of gold resources.

Small- and Mid-Cap Brazilian Gold Mining Companies

Colossus Minerals is an emerging exploration and development company that is entirely focused on Brazilian gold with three projects. The company's flagship project, Serra Pelada, is a joint-venture partnership whereby Colossus can earn a 75% interest from Cooperativa de Mineração dos Garimpeiros de Serra Pelada, a registered Brazilian private cooperative company that aims to revamp the historic Serra Pelada gold mining camps. Serra Pelada is a famous mine that produced an estimated 2 million ounces of gold plus platinum and palladium, from a mid-sized open pit in the 1980s.

Since arranging for the joint venture, Colossus has acquired 45,000 meters of historic drill core from the Serra Pelada area and advanced a program of re-sampling and re-assay program for gold. Recent results from this re-assaying program include 17.56 meters grading 201.14 g/t gold, 41.10 g/t platinum and 54.16 g/t palladium in hole FD-0072 and 51.02 meters grading 18.46 g/t gold, 1.79 g/t platinum and 3.10 g/t palladium in hole FD-0052. The company is currently drilling at Serra Pelada and has recently published incredible gold drill results including:

88.00 meters grading 5.80 g/t gold, 6.11g/t platinum and 6.83 g/t palladium in hole SPD-001;46.72 meters grading 24.11g/t gold, 9.04g/t platinum and 11.57g/t palladium in hole SPD-002; and53.50 meters grading 5.35g/t gold, 2.51g/t platinum and 4.01g/t palladium in hole SPD-004

After completing 8,000 meters of new drilling this year, Colossus hopes to establish a 43-101 compliant resource on the Serra Pelada project in 2009, followed by another 12,000 meters of diamond drilling and a feasibility study in 2010.

Jaguar Mining is one of the fastest growing gold producers in Brazil. The company is currently producing gold from its Sabará, Turmalina, and Paciência mines and processing facilities. In 2007, Jaguar produced 70,000 ounces of gold from Sabará and Turmalina. The company is aiming to produce 700,000 ounces a year by 2014.

Turmalina is an underground mine that was commissioned in November 2006 and is currently processing 1,200 tonnes of ore per day. Turmalina produced 51,500 ounces of gold in 2007. During this quarter, Jaguar expects to initiate an expansion program at the Turmalina processing plant. Once completed, Turmalina's capacity will increase to approximately 100,000 ounces per year. The Turnalina project contains 587,000 ounces of gold reserves.

Sabará is an above ground oxide mine. Its ore is currently being processed at 1,500 tonnes per day. Sabará produced 24,000 ounces of gold in 2007 and management estimates that production will remain steady for this

Kinross Gold Corp. • NYSE: KGC, TSX: K Market Cap: US$11.39 billion

Yamana Gold Inc. • NYSE: AUY, TSX: YRI, LSE: YAU Market Cap: US$9.49 billion

Colossus Minerals Inc. • TSX: CSI Market Cap: C$126 million

Jaguar Mining Inc. • NYSE: JAG, TSX: JAG Market Cap: US$55 million

Sabará is an above ground oxide mine. Its ore is currently being processed at 1,500 tonnes per day. Sabará produced 24,000 ounces of gold in 2007 and management estimates that production will remain steady for this year. The Sabará complex holds159,680 ounces of gold reserves and 319,020 ounces of gold resources.

Jaguar recently completed commissioning of the Paciência underground mine and plant. Paciência contains 394,450 ounces of gold reserves and is expected to produce and average of 73,300 ounces per year over a 4.85 year mine life.

Brazauro Resources is a small exploration and development company with three main gold properties in the gold famous Tapajós district of Pará in Brazil. The 100%-controlled Tocantinzinho property is Brazauro's lead project.

In 2004, Brazauro made the initial discovery of the deposit when it drilled 91.90 meters grading 1.01 g/t gold and 170.20 meters grading 1.84 g/t gold in the first set of drill holes at the Tocantinzinho ore body. Since that time, the company has drilled nearly 100 more drill holes and completed resource estimate that shows 2.04 million ounces of inferred gold resources.

A scoping study for the Tocantinzinho mine project was recently revised. The study estimated an average annual gold production of 123,000 ounces of gold over a 13 years period based on a 3 million tonnes per year open pit mining schedule.

Brazauro is currently in the middle of a 7,500 meters of infill core drilling program that was designed to upgrade the inferred resources to the indicated category and increase the total resource. Assay highlights from the current drill program include 234 meters grading 1.81 g/t gold and 125 meters grading 2.31 g/t gold.

Serabi Mining is a gold mining and exploration company involved in the evaluation, development and mining of gold deposits in Brazil. The company has several hundreds of thousands of hectares of exploration land. But Serabi’s primary operation is the 100% owned Palito gold mine, a newly commissioned, underground mine that is extracting high-grade gold and copper sulphide ore.

In 2007, Serabi took out 28,942 ounces of gold and over a million pounds of copper from the Palito mine. The company is planning to produce approximately 40,000 ounces of gold from Palito this year with new mining equipment a facility upgrades.

Serabi will also continue step-out drilling to identify and evaluate additional parallel vein structures on the Palito project. The Palito mine project current has 806.000 ounces of gold resources.

Magellan Minerals is a recently listed and well-financed Canadian-based junior exploration company focused on mineral exploration and development in the state of Para in northern Brazil. Magellan's principal project is the Cuiú Cuiú project.

In its heyday, from 1972 to 1992, the Cuiú Cuiú district was a significant alluvial gold producer, yielding between 1.5 and 2 million ounces. During the period from 1996 to 1999, TVX Gold, Phelps Dodge, Rio Tinto and Altoro Resources all carried out work at Cuiú Cuiú. This work included gridding, soil and rock chip sampling and a small amount of shallow drilling. However, due to the inability of any of these companies to make satisfactory agreements with the majority of the local miners, and also due to the fall of the gold price in 1998, interest in the area waned.

In response to rising gold prices in 2004, Magellan Minerals acquired the exploration rights over a 47,000-hectare (116,000-acre) area from the Brazilian National Department of Mineral Production. A year later Magellan reached an agreement with the owners of the traditional surface rights whom have historically worked and lived at Cuiú Cuiú to explore the area.

To date the company has identified a mineralized structure that stretches for more than 17 kilometers across Magellan's license area. The company has found five major gold-in-soil anomalies as well as several minor anomalies along this zone.

The largest of these anomalies is the Central anomaly, which is approximately 450 meters wide and extends for 2 kilometers.

In late 2006, and prior to going public, Magellan completed a small Phase I 10-hole, 2,700 meter drill program at the Central anomaly. This initial exploration program returned significant near surface, bulk tonnage grade drill results including 159.0 meters grading 0.91 g/t gold in hole CC-02-06 and 134.5 meters grading 1.10 g/t gold in hole CC-03-06.

One year later the company initiated a Phase II exploration drill campaign that was increased to 7,000 meters after Magellan raised $11 million with its IPO in February. This Phase II exploration program has been recently completed and the final drill results were just released last week. Highlights from the entire 41-hole drill program include:

65.8 meters grading 3.54 g/t gold in hole CC-13-07, including 6.1 meters grading 23.53 g/t gold;179.6 meters grading 1.06 g/t gold in hole CC-15-07;174.2 meters grading 1.46 g/t gold in hole CC-16-07, including 59.0 meters grading 2.86 g/t gold and 2.0 meters grading 26.15 g/t gold;220.7 meters grading 2.02 g/t gold in hold CC-32-07, including 9.8 meters grading 17.91 g/t gold and 4.2 meters grading 25.69 g/t gold; and101.1 meters grading 0.79 g/t gold in hole CC-38-07.

A Phase III exploration drill program within the next few months followed by an NI 43-101 resource estimate calculation.

Brazauro Resources Corp. • TSX-V: BZO Market Cap: C$91 million

Serabi Mining Plc • LSE: SRB Market Cap: £26 million

Magellan Minerals Ltd. • TSX-V: MNM Market Cap: C$29 million

Other Brazilian Gold Mining Companies 

Amarillo Gold Corp. Exchange: Symbol

Share Price

Market Cap Brazilian Pure Play?

TSX-V: AGC C$1.30 C$53

million Yes

Lead Gold Project in Brazil

Ownership

Status Comments

Mara Rosa

100% Exploration

Indicated resource of 13.5 million tonnes grading 1.48 g/t gold, equivalent to 643,000 ounces of gold, plus inferred resource of 13.0 million tonnes grading 1.26 g/t gold, equivalent to 538,000 ounces of gold.

* Amarillo Gold also has earn-in options for three other Brazilian gold propertiesAmazon Mining Holding Plc

Exchange: Symbol

Share Price

Market Cap Brazilian Pure Play?

TSX-V: AMZ C$0.65 C$18 million Yes

Lead Gold Project in Brazil

Ownership

Status Comments

Tocantins 100% ExplorationPhase I exploration program of 12 drill holes totaling 1,700 meters recently completed. Assay results pending.

* Amazon Mining also has a 100% interest in and two earn-in options for three other Brazilian gold properties

Amerix Precious Metals Corp. Exchange: Symbol

Share Price

Market Cap Brazilian Pure Play?

TSX-V: APM C$0.20 C$13

million Yes

Lead Project in Brazil

Ownership

Status Comments

Vila Porto Rico 100% Exploration

Inferred resource of 1.3 million tonnes grading 5.8 g/t gold, equivalent to 250,000 ounces of gold. Exploration program of 39 drill holes totaling 5,800 meters recently completed. Some assay results pending.

* Amerix also has a 100% interest in one other Brazilian gold propertyAura Minerals Inc.

Exchange: Symbol

Share Price Market Cap Brazilian Pure Play?

TSX: ORA C$1.70 C$903 million NoLead Gold Project in Brazil

Ownership

Status Comments

Arapiraca 100% Pre-Development

Inferred resource of 111 million tonnes grading 0.55% copper and 0.16 g/t gold, equivalent to 1.4 billion pounds of copper and 626,000 ounces of gold. Over 30,000 meters of exploration and infill drilling compeleted in the past 18 months with another 20,000 meters by 3Q 2008. Work to complete a feasibility study underway.

* Aura also has a 100% interest and 70% interest in two other Brazilian gold propertiesBeadell Resources Ltd.

Exchange: Symbol

Share Price

Market Cap Brazilian Pure Play?

ASX: BDR A$0.40 A$37 million No

Lead Gold Project in Brazil

Ownership

Status Comments

Tartaruga 100% ExplorationOver 6,000 meters of drilling completed by previous owner. Exploration program totaling 5,000 metes of drilling currently underway. Targeting up to 429,000 ounces of gold.

Chapleau Resources Ltd. Exchange: Symbol Share Price Market

Cap Brazilian Pure Play?

TSX-V: CHI C$0.40 C$34

million No

Lead Gold Project in Brazil

Ownership Status Comments

CoringaOption to earn 100% from Tamin Mineracao Ltda. (private)

ExplorationPhase II exploration program of 42 holes totaling 5,000 meters currently underway. High-grade results reported so far include 3 meters grading 65.77 g/t gold.

* Chapleau also has a 100% earn-in option for one other Brazilian gold propertyCrescent Resources Corp.

Exchange: Symbol Share Price Market

Cap Brazilian Pure Play?

TSX-V: CRC C$0.12 C$4 million No

Lead Gold Project in Brazil

Ownership Status Comments

Matupa�

Option to earn 100% from Aurora Gold Corp. (OTCBB: ARXG)

Exploration

Historic resource of 17 million tonnes grading 1.3 g/t gold, equivalent to 780,000 ounces of gold. Exploration program of 3,000 meters planned to begin at the end of June.

Hidefield Gold Plc Exchange: Symbol

Share Price

Market Cap Brazilian Gold Pure Play?

LSE: HIF £3.25 £9 million No Lead Gold Project in Brazil

Ownership

Status Comments

Cata Preta 100% ExplorationHistoric resource of 820,000 tonnes grading 4.96 g/t gold, equivalent to 144,00 ounces of gold.

* Hidefield also has a joint-venture agreement with Colossus Minerals on one other Brazilian gold propertyLara Exploration Ltd.

Exchange: Symbol Share Price Market

Cap Brazilian Pure Play?

TSX-V: LAR C$0.93 C$14

million No

Lead Gold Project in Brazil

Ownership Status Comments

Campos Verdes

Option to earn 70% from CCT Capital Ltd. (TSX.V: CCW)

ExplorationInitial exploration program of 9 drill holes totaling 1,400 meters recently completed. Assay results pending.

* Lara also has an 80% and a 100% earn-in option for two other Brazilian gold propertiesLinear Gold Corp.

Exchange: Symbol Share Price Market

Cap Brazilian Pure Play?

TSX: LRR C$2.00 C$56 million No

Lead Project in Brazil Ownership Status Comments

Apiacás-Papagaio

Option to earn 100% from Geomin S.A. (private)

ExplorationRecent sampling of exposed veins over thicknesses of 1 to 3 meters indicates values ranging from 3.2 to 171.2 g/t gold.

* Linear also has 100% earn-in options from Geomin S.A. (private) for three other Brazilian gold propertiesLuna Gold Corp.

Exchange: Symbol Share Price Market

Cap Brazilian Pure Play?

TSX-V:LGC C$0.99 C$60

million Yes

Lead Project in Brazil

Ownership Status Comments

Aurizona

Option to earn 100% from Eldorado Gold Corp. (AMEX: EGO, TSX: ELD) and Brascan Recursos Naturais S.A. (private)

Exploration

Measured and indicated resource of 18.3 million tonnes grading 1.30 g/t gold, equivalent to 763,000 ounces of gold plus inferred 12.6 million tonnes grading 1.29 g/t gold, equivalent to 525,000.

* Luna also has a 100% interest in one other Brazilian gold project.Mundo Minerals Ltd.

Exchange: Symbol

Share Price Market Cap Brazilian Pure Play?

ASX: MUN A$0.59 A$74 million No Lead Project in Brazil

Ownership

Status Comments

Engenho 100% Re-commissioning

Resource of 1.82 million tonnes grading 5.59 g/t gold, equivalent to 326,000 ounces of gold. Old processing facility currently being re-commissioned. Mine expected to produce 30,000 ounces of gold for 10 years.

* Mundo also a 100% interest in one other Braziilan Gold project.Osisko Mining Ltd.

Exchange: Symbol Share Price Market

Cap Brazilian Pure Play?

TSX: OSK C$4.09 C$659 million No

Lead Project in Brazil

Ownership Status Comments

Castelo Dos Sonhos

Option to earn 70% from Amazonia Mineracao Ltda. (private)

ExplorationPast trench sampling returned up to 77 meters grading 1.39 g/t gold, and drilling returned up to 20 meters grading 2.80 g/t gold.

Peak Gold Ltd. Exchange: Symbol

Share Price

Market Cap Brazilian Pure Play?

TSX-V: PIK C$0.75 C$656 million No

Lead Project in Brazil

Ownership

Status Comments

Amapari 100% ProductionInitial exploration program of 12 drill holes totaling 1,700 meters recently completed. Assay results pending.

Solitario Resources Corp. Exchange: Symbol

Share Price

Market Cap Brazilian Pure Play?

AMEX: XPLTSX: SLR

US$4.71 US140 million No

Lead Project in Brazil

Ownership

Status Comments

Mercurio 100% ExplorationA total of 36 drill holes have tested three principal target areas. Results include 21.9 meters grading 6.97 g/t gold.

Talon Metals Corp. Exchange: Symbol

Share Price

Market Cap Brazilian Pure Play?

TSX: TLO C$0.67 C$14 million Yes

Lead Project in Brazil

Ownership

Status Comments

São Jorge 100% ExplorationIndicated resource of 5.0 million tonnes grading 1.19 g/t gold, equivalent to 191,000 ounces of gold.

* Talon also has earn-in options for four other Brazilian gold propertiesVerena Minerals Corp.

Exchange: Symbol

Share Price

Market Cap Brazilian Pure Play?

TSX-V: VML C$0.25 C$25

million Yes

Lead Project in Brazil

Ownership

Status Comments

Volta Grande 100% Exploration

Indicated resource of 7.4 million tonnes grading 1.01 g/t gold, equivalent to 240,000 ounces of gold, plus inferred resource of 48.5 million tonnes grading 0.96 g/t gold, equivalent to 1.5 million ounces of gold.

* Verena also has 100% interests in three other Brazilian gold properties

Conclusion 

Brazil is a historic gold producer and home to vast unexplored areas with good potential for strong mineralization. The prospect of harvesting gold from “the other side” of the Guiana Shield will continue to drive investment into Brazilian gold exploration and development in the foreseeable future.

The country has reformed social and economic policies and is mining friendly and companies seeking gold upside in Brazil are well justified. Considering the long-term outlook for gold prices, at least some Brazilian gold exposure is recommended for any type of portfolio.

Keep an eye on your mailbox for Wealth Daily , where I offer more gold stock analysis in my column every Friday.

Luke Burgess Editor, Wealth Daily

You can view the HTML version here: Gold Mining Stocks

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