The rock units present within the NX Gold Mine belong to the Nova Xavantina Volcano-Sedimentary Sequence, part of the upper regional Cuiabá Group.

Historic and the current known extent of gold mineralization at the NX Gold mine are
structurally controlled and hosted in four major sulphide-rich quartz veins/bodies, from west to east: Buracão, Santo Antonio, Brás and Matinha. The veins are hosted in strongly deformed metamorphosed sedimentary rock units and diorite that trend generally to the northeast. The veins exhibit a typical laminated pattern parallel with the vein contacts. The laminations are
characterized by alternating quartz bands and foliated host rocks indicative of multiple pulses of mineralized fluids during formation.

There are two main phases of folding recognized at the NX Gold Mine.

The first phase of folding is associated with a variably oriented, shallowly to moderately dipping schistosity (S1). The S1 schistosity is deformed by a crenulation cleavage (S2) oriented generally 234/66 but varying in strike from 190 to 270 degrees with westerly to northerly dips varying between 30 and 80 degrees. Both foliations (schistosity and cleavage) are present at the mine and at least as far as the Cristal vein located 1,800 metres to the northeast of the mine.

The development of the S2 cleavage is heterogeneous and is generally better developed near the mine to a point where the S1 is completely re-oriented along th ........

Ore is currently produced from the Santo Antonio vein– an east-west striking, shear-zone hosted, quartz vein, accessed from a single mine portal and decline and from the Buracão vein.

Economic gold and silver mineralization at the NX Gold Mine is structurally controlled within the Araés shear zone. Gold and silver are currently mined from a major sulphide-rich, laminated quartz vein dipping approximately 40 degrees to the north-northwest and striking to the west-southwest – the Santo Antonio vein, which achieved first production during the fourth quarter of 2019. Prior to the second half of 2019, mining activities occurred in the Brás and Buracão veins, located to the east and west of Santo Antonio, respectively.

The current development of the underground mine is at level -220 in the Santo Antonio vein.

Incorporating geotechnical design parameters, the Santo Antonio vein was sub-divided into two main panels on level -65 (upper) and level -170 (lower) corresponding to the delineation between rock mass quality of the vein. The upper level is, in general, of lower rock quality, thus underhand cut and fill has been selected as the mining method of choice, incorporating the use of cemented paste backfill. The lower panel, which exhibits better rock quality and strength characteristic, will continue to employ the use of inclined room and pillar, with full recovery of the pillars expected utilizing cemented paste in an ascending operation.

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Currently, all units of the plant operate in 3 shifts for 24 hours per day from Monday to Saturday. The crushing rate is 80 tph, and the grinding rate is 44.5 tph. Average utilization is currently 34.2% for crushing and 39.7% for grinding due to low mine feed. The plant has the capacity to process in excess of 300,000 tonnes of ore per year as compared to current maximum achieved rates of approximately 160,000 tonnes per year in the current life of mine plan.

The Falcon centrifugal concentrator operates at 60 G forces and in 19 minute-long cycles.

The daily production of gravity concentrate delivered into intensive cyanidation - IRL (GEKKO) is 1,500 kg per batch (approximately 12 hours of operation). More than 75% of the gold is recovered during centrifugal concentration/IRL.

Hydrocyclone overflow with a target P80 of 150 microns is used as flotation feed after passing through a 1m x 1.5m vibrating screen with mesh diameter of 1 mm. The flotation unit ........