The MCSA Mining Complex’s active mining and development projects are within the Curaçá Valley mafic-ultramafic complex, located within the Curaçá high-grade metamorphic gneissic terrain, a part of the Salvador-Curaçá orogen, a northern extension of the Atlantic Coast Granulite Belt in the São Francisco Craton.

Given uncertainties with the most likely deposit models for the Curaçá valley copper deposits, it is quite possible that previously undocumented processes were responsible for mineralization and a new deposit model is required. This might be a variant of the magmatic sulphide or IOCG models, a hybrid model with magmatic and hydrothermal processes, or something different.

Mafic-ultramafic units occur within the charnockite and biotite gneisses as lenses or sills with thicknesses generally less than 50m. The mafic-ultramafic lenses are composed of hypersthenite (pyroxenite), norite, gabbro-norite, gabbro and rarely, anorthosite that are less than 1m thick. Extensive pyroxenite has been described within the mafic-ultramafic lenses at the Caraíba Mine and the Vermelhos UG Mine, whereas to date pyroxenite reportedly occurs as a minor part of the mafic-ultramafic lenses at the R22W Mine, Surubim OP Mine and the Angicos Mine. Biotite schist and amphibolite occur in shear zones, in contact with granite, or as isolated lenses within gneiss.

Known copper deposits are hosted within the Rio Curaçá and Tanque Novo sequences, differentiated by metamo ........

The regional MCSA operations include fully integrated processing operations and, currently, two active producing mining locations within the Curaçá Valley. The active operations include the Caraíba Complex (comprised of the underground Pilar Mine, integrated Caraíba Mill and the inactive solvent extraction electrowinning plant (“SX/EW Plant”)), and the underground Vermelhos Mine. The past producing operations include the open pit mines of R22 Mine, Surubim OP Mine as well as the historic mines of Angicos Mine and Suçuarana Mine”. Collectively the active and pastproducing mines comprise the “MCSA Mining Complex”.

Production from the Pilar UG and the Vermelhos UG mines currently serves as feed for the Caraíba Mill. Ongoing development and exploration activities include: the continued advancement of the primary ramp and associated infrastructure of the Pilar and Vermelhos underground mines in support of mine life extensions, including the delivery of the Deepening Extension Project, as well as associated plant and site refurbishments undertaken in support of the LOM plan and during the normal course of business.

Current operational rates for the Pilar UG Mine and the Vermelhos UG/Mine are approximately 4,000 tonnes per day and 2,200 tonnes per day, respectively. Production volumes from underground mining operations of the Pilar Mine are expected to increase after the completion of a new 4.5m external shaft from surface.

The Pilar UG Mine has prev ........

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