The deposition of gold in the iron formation occurred when sulfur-rich auriferous hydrothermal solutions, ascending through favorable pathways in the shear zone and fault structures, reached the iron-rich minerals and reacted with them, collected iron from the magnetite and iron silicates and dumped iron and sulfur as sulfides, in the process also precipitating silica, carbonates and the gold.

The pattern and intensity of mineralization varies from place to place, from disseminations to massive ore shoots, with combined thickness of up to 25 meters.

The orebodies are composed of concentrations, bands, veins, veinlets and disseminations of fine-grained silica, carbonates and sulfides, which fill open spaces and totally or partially replace the host rocks. The initial data indicated a dominance of pyrrhotite at north and pyrite at south, followed by variable quantities of arsenopyrite, chalcopyrite and galena. Gold occurs in free form or included in the sulfides.

U&M’s Brazilian open pit mining expertise, combined with its sizeable fleet, means that U&M is uniquely positioned to help us move Tucano towards generating free cash flow and resolving the key issue of material movement in line with our LOM plan.

The Tucano mine site is an established mining operation with an operating process plant including single stage crushing, Semi autogenous grinding (SAG) facility, Carbon in Leach (CIL) circuit and a conventional elution circuit with electro-winning plating with final site production of dore bars. The process plant surface foot print is fully established, including a ROM pad and three tailings storage facilities that are expanded yearly for future capacity. The Administration facility, mobile maintenance shop areas are fully established.