braziron float, page-10

Consider this piece of news. The projects are of similar geology, and infact are on the same trend (See picture). So this takeover represents the closest we can get to putting a value on Xique Xique. The company needs to drill XX and come up with a JORC estimate. The first estimate could produce a large resource. It's my opinion that the first estimate for XX will be in the 500 to 700m tonne range. This could potentially put BZL at $1 per share if we use $0.50 per tonne from this recent takeover. This a biased opinion but I have put my money where my mouth is on this one.

"ENRC buys remaining stake at Brazilian iron ore miner
Kazakhstan?s Eurasian Natural Resources Corporation (ENRC) agreed to pay US$ 670 million for the remaining stake of Brazilian iron ore developer Bahia Minerals (Bamin), which holds the BML deposit, and also granted an option to buy the Greystone adjacent area for US$ 150 million. BML is set to produce 19.5 million tonnes of iron ore concentrate a year from 2014, demanding capital expenditures of US$ 2.1 billion, said ENRC.

BML has a JORC compliant iron ore resource base of 1.8 billion tonnes with an average Fe content of 32% while Greystone has a JORC compliant iron ore base of 147 million tonnes with similar average Fe content. Geologist Jo?o Carlos Cavalcanti discovered the areas, and ENRC entered Bamin in 2008 when it bought a 50% stake at the company in a US$ 306 million deal."