The state of Bahia lies to the northeastern part of Brazil, The Capital is Salvador. CPRM, the State body for exploration, through its extensive exploration program has found that the state of Bahia possess a wide range of mineral wealth like Iron, Ferro-alloys, Copper, Nickel, Vanadium-Titanium, Lead-Zinc, Chromite and ornamental stones. Minergy Resources has 20 Blocks (each being 2000 ha) for Iron, Manganese, Copper, Nickel, Quartz and Vanadium. Figure-1 gives a general idea about the locations of the same.

The state is one the biggest producers of minerals in Brazil and is known to possess huge deposits of iron-ore. The development of world famous iron-ore project Pedra do Ferro Project in the Caetité region, an area located in the southeast of Bahia by Bahia Mineração alone holds a reserve of 470.50 million tons with a average iron content of 40% (reserve estimated by SRK Consulting). There are various other iron-ore mines which run close to the Paramirin and Erico Cardoso region.

It is the largest copper producer (74.000 tons/year), chromate (407.493 tons/year)and magnetite (332.369 tons/year).

Copper concentrate production in 2000 amounted to 31,786 t produced by Mineração Caraíba S/A’s (Grupo PARANAPANEMA) deposit in Jaguari, State of Bahia, which was Brazil’s only underground copper mine and Caraiba Metais S/A (CMSA) of Camaçari, Bahia, produced 185,345 t of primary copper metal. Carnaíba, in the northern part of Bahia is known for emerald deposits.

The Minergy Blocks : have a minimum probable resource of 300 Million tons of Iron Ore and there is also a known occurrence of around 90 Million tons of high grade Nickel. We have carried our preliminary exploration and from the bulk sampling analysis by SGS , it is clear from that the Paramirin and Erico Cardoso region for iron ore are rich in Fe content that varies from 55% to nearly 70%. with impurities like phosphorous, sulphur and TiO2 present in less than 1%.

The areas which have been targeted for Manganese such as Ipupiara, Barra do Mendes, Formosa de Rio Preto, Riachao das Neves show a range of Mn content of 33 – 50%.

The Blocks show good mineralization of Copper.

Logistics: The Blocks are 15 kilometers from the asphalt road that connects the municipal district of Paramirim to the Ports of Salvador and Ilhéus and approximately 120 kilometers from the railroad that connects the State of Minas Gerais to Salvador Port,furthermore It is important to emphasize that “FERRO OESTE” (western railway) which is currently being built, is located at an approximated distance of 80 kilometers from the areas and will connect the areas directly to the two Ports.