Ann: Exceptional Metallurgical Extraction Results, page-2

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EXCEPTIONAL METALLURGICAL RESULTS DELIVERED AT TRÊS ESTADOS

Highlights:
• Results received from extraction tests at Três Estados indicate that exceptional levels of precious metals can be recovered by relatively simple refining techniques

• Results are from hydrometallurgical extraction test work undertaken on a 5kg bulk surface sample at e-Recicla Ltda precious metals refinery

• The combined assay results received were 102.18g/t Au (3.28oz/t), 63.32g/t Pt (2.04 oz/t), 36.72g/t Pd (1.18oz/t) and 135.20g/t Ag (4.35oz/t) from a two-stage extraction process which produced two precious metal buttons

• Pyrometallurgical test undertaken on two 15kg samples at the Marcelo da Silva Pinto M.E. precious metal refinery, São Gonçalo, greater Rio de Janeiro delivered assay results of 666g/t (21.41 ozs/t) Ag and 466g/t (14.98 ozs/t) Ag

• The same homogenised sample used for both hydrometallurgical and pyrometallurgical tests, from the same general location as TER 048 announced on 27 February 2017

• Importantly, both processes used in the test work can be simply adapted for commercial extraction

• BBX Minerals has engaged CETEC (Minas Gerais Federation of Industry research institute) to enhance and optimise the assay and extraction processes.

Brazilian gold explorer, BBX Minerals (ASX: BBX or “the Company”) is pleased to announce exceptional results of initial metallurgical testing from the Company’s Três Estados Project.

The hydrometallurgical test work was conducted at e-Recicla Ltda, an external Brazilian precious metals refinery based in Nova Lima, Minas Gerais and pyrometallurgical extraction tests at Marcelo da Silva Pinto M.E, an external precious metals refinery in São Gonçalo, Rio de Janeiro. The tests were conducted on homogenised 5kg and 15kg sub-samples, respectively, taken from the same bulk sample from the Company’s Três Estados prospect.

Commenting on the significance of the results, BBX CEO Jeff McKenzie said: “We are delighted by the positive extraction tests from Três Estados which indicate that exceptional levels of precious metals can be recovered by relatively simple refining techniques. The ongoing assay, extraction and metallurgical test work at both refineries and CETEC will further optimise the recovery processes which supports our ongoing exploration and drilling programme. We will now focus in the short-term on the Tres Estados and Ema projects where there is good road access available and where mineralised zones outcrop at surface.”

A 260kg surface sample of unweathered mineralised gabbro, collected from an area of approximately 110m x 200m at the Adelar garimpo (see figure 3) was crushed to minus 1mm and homogenised with sub-samples submitted to both refineries for a series of metal extraction tests. The random bulk sample was collected from the same general location as TER 048 for which assay results of 54g/t Au, 25g/t Pd and 18g/t Pt were previously announced on 27 February 2017, utilising BBX’s T95 analytical method.

A two-stage sequential leach process was utilised on the 5kg sample to extract the precious metals. This process recovered two metal buttons (see figure 1), with 2 grams of silver being added in the first extraction to enhance the production of a button weighing 3.2733g. The second leach stage produced a button weighing 0.4088g.

Analysis of the buttons by AAS (atomic absorption spectrometry) after dissolution in acid showed a combined precious metal content equivalent to 102.18 g/t gold, 62.32g/t platinum, 36.72g/t palladium and 135.20g/t silver (Table 1).

Under the pyrometallurgical method two 15kg samples were smelted with two proprietary fluxes and a copper collector. After cupellation, buttons weighing 6.9467g and 10.4836g were obtained (see figure 2), which were dissolved and assayed by AAS, with resultant grades of 466g/t Ag and 4.70g/t Au (flux A) and 666g/t Ag and 1.53g/t Au (flux B). In addition, fire assay analysis of the slag after smelting revealed values (converted to original sample weight) of 7.29g/t and 10.83g/t Au, respectively, indicating that significant levels of gold were not being recovered into the metallic buttons (table 2).

The Minas Gerais Federation of Industry research institute CETEC has been engaged under the supervision of Dr Willer Pos (see media release of May 10, 2017) to further enhance and optimise the extraction process and recover additional gold, PGM’s and silver in parallel with ongoing test work at the Nomos laboratory, and at both external refineries.