The Santa Cruz can be classified as sedimentary - metamorphic. During late Precambrian age, pelites and carbon were deposited at the same time. Later in early Cambrian age, Orogenic movements transformed these sediments to high grade metamorphic rocks, and these movements transformed the carbon and the hosted rock to gneiss with graphite (this type of mineralization with the different metamorphic minerals is known as the Kinzigite Complex).

The mineralization was shifted by a regional fault, which dictated alignment of the host rock (gneisses and paragneisses) and coupled with the soft nature of the graphite, made the association of such strike and fold (anticlines) changes to host mineralized zones and thicker lenses. Several deposits, including the Santa Cruz Graphite Project, are hosted in this regional area that covers over 25,000 km².

The mineralized zone in the main target areas of São Rubens and São Manuel is located in the friable upper layers close to surface. There is approximately 7.5 km long continuous strike with widths varying from 30 to 200 meters, with some depositional areas much wider because of the presence of significant folds. Mineralization is oriented sub vertical to vertical and is in evidence down to a drilled depth of approximately 80 meters. The ore body is open at depth and along strike. There is also the presence of disseminated mineralization in several of the channel samples taken from rock outcrops in the São Rubens target as well as in various road cuts throughout the region. São Manuel target shows foliated gneisses with Az 330°/ 90° to Az 350°/80° East strike. To the south, the bedding changes from being 90° to 65° East.

The mining method selected for the Project is conventional open pit with excavator, dozer and haul trucks. Life of mine strip ratio is favorable at 1.27 tonnes of waste for each tonne of rock mined.

The mine production was scheduled at a mining rate of 650,000 tons of mineralized material per annum, and resulted in an average LOM strip ratio of 1.27:1 (waste to mineralized material). The mine life given the current resources and plant design is 18.5 years, and the maximum depth of the pit is approximately 40 meters.

Excavation will be carried out by hydraulic excavators and a dozer, which may be required in the less weathered ore zones. Loading and hauling will be carried out by hydraulic excavator and conventional 10-15 ton trucks that will transport the mineralized material to the plant. Waste removal will be coordinated so all waste is accommodated in the older pits in the neighboring areas mined out or at the designated waste pile, always seeking to minimize environmental footprint.

Based on the results of the pilot plant tests, a process flow circuit consisting of material homogenization, segregation, grinding, conditioning, flotation, drying and packaging was developed.