The Project lies within the north to south trending Neoproterozoic Araguaia Fold Belt.

The belt comprises metamorphosed and deformed marine-clastic sediments of the Tocantins Group and is split into two formations based on the degree of metamorphism present. The prospective areas of HZM are located in the western Couto de Magalhães Formation which contains weakly metamorphosed, marine pelites with local carbonate, iron-rich, and mafic to ultramafic bodies.

The local geology has largely been interpreted from airborne geophysical survey data, soil sampling data, mapping and core drilling by HZM and previous owners of the tenements. Various types of metasediments cover the vast majority of the licence area. Large plateau areas, varying in size from a few hundred square metres to several square kilometres, and generally capped with a hard iron-rich duricrust that is occasionally silicified are frequently developed over mafic and ultramafic bodies. These bodies and numerous northwest-southeast to north-south trending lineaments have been identified from magnetic data and outcrop. These bodies are often bounded by a siliceous breccia. Bodies of pillow lava and other volcanic material also exist. The area is cut by numerous mafic dykes.

A distinctive lateritic sequence is developed over ultramafic and mafic rocks within the Project area and the same sequence can be recognised at each of the target sites though the thickness and extent of each facies ........

Planned mining at ANP is to be completed with conventional open pit truck and excavator mining methods. No blasting will be necessary. The orebodies are flat lying and variable in composition. Waste overburden will be stripped on 4 m benches, and ore on 2 m benches for additional selectivity.

Reverse circulation (RC) grade control drilling will be completed at 10 m x 10 m spacing to define the waste/ore/ore type boundary ahead of mining. In addition, visual control at the boundary of the limonite and the transition ore will be used to minimise the amount of limonite being included in the ore feed.

Waste will be stored in external dumps nearby the pits. Ore will be transported to stockpile hubs near each deposit. Sheeting (using ferricrete won from the overburden) will be required to support trafficability in and around the mine during the wet season. Depending on plant demand, ore will be hauled from hub stockpiles or directly from the pits to the run of mine (ROM) at the RKEF process facility. Stockpiles on the (ROM) will be sheeted and classified according to ore type and chemistry for blending.

Due to the high rainfall in the wet season, mining (including stockpile rehandling) will be restricted to the Pequizeiro area between October and March. Mining rates are approximately three times higher in the dry season, which is typical in Brazilian open pit mining operations.

The annual mining rate peaks at 3.5 Mt/a between production ........

- subscription is required.

- subscription is required.