The Coringa Gold Project is underlain by granitic intrusions of the Maloquinha group and rhyolites of the Iriri group (Salustiano Formation). The granites are granular, medium-grained, and consist of pink feldspar and quartz. The rhyolites are fine to medium-grained, porphyritic, and strongly magnetic. Sanidine and quartz phenocrysts occur in a fine-grained matrix of sanidine-quartz. Minor amounts of biotite also occur in the matrix which has been altered to chlorite.

There are two dominant structural trends on the Coringa Gold Project property:
• The 310° structures are interpreted as strike-slip faults with probably a dextral (right lateral) sense of displacement.
• Structures trending at 345° are interpreted as R-shears.

Mineralized veins at the Coringa Gold Project are associated with the R-shears. The dip of the veins ranges from 750 to the east to vertical, but they occasionally dip steeply westward (e.g., Galena Vein).

Mineralization at the CoringaGold Projectis associated with a shear/vein system that has a strike length of over 7 km. The mineralized zones vary in thickness from <1 centimeter (cm) up to 14 meters. Several veins (i.e., Galena, Mãe de Leite, Meio, and Come Quieto) occur along the main mineralized corridor and others, such as Serra, Demetrio, and Valdette, form subparallel zones. The average thicknesses for the veins included in the estimate of mineral resources are: Serra 0.52 m, Galena & Mãe de Leite 0.59 m, M ........

The underground mining method at Coringa will involve driving vertical raises from drifts driven through the vein, and subsequently breasting along the strike of the vein on each side of the vertical raise. The primary equipment used for production will be jackleg and stoper drills. This method was chosen due to its ability to effectively mine the narrow vein deposit while minimizing dilution. Although this mining method does utilize a large number of drillers which leads to a higher labor cost, it does eliminate the larger initial capital investment needed when using more advanced mining equipment. This proven mining method is currently in use at the geographically and geologically similar Palito mine, which is also owned by Serabi.

Vein systems have been broken into separate mining areas. This separation was based upon a trade-off analysis between a separate portal and ramp versus drifting over to the adjacent continuous stope area within each vein system. Each mining area will require its own portal, ramp, ventilation, dewatering, and underground utilities. The Serra vein system requires only one portal due to the continuous grade distribution within the planned stopes.

The production sequence was determined by mining the higher grade resource areas first.

Stopes are 30 meters vertical along dip and 32 meters horizontal along strike. Stopes are mined from a vertical raise driven from drifts. Each stope will contain eight stope raises. Acces ........

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