Cerrado’s principal target of interest is the Serra Alta Deposit.

The intrusive at Serra Alta is a syenogranite, composed predominantly of orthoclase, quartz and albite, with a peraluminous character. It has a moderate alkali content with high potassium, indicating a subalkaline composition. Despite the fact that it possesses certain affinities with A type granites, the samples of the granite studied also have characteristics of highly fractionated I type granites, whose petrographic and geochemical characteristics may be confused with the former. The hypothesis is that such similarities are derived from multi-stage actions involving reworked protoliths submitted to extensive fractionation.

The Serra Alta Deposit is a wide mineralized zone about 300 m wide with approximately 1,500 m of exposed strike length, as demonstrated by the bandeirante and garimpeiro working. The zone is a corridor which contains veined, mineralized shoots generally striking N10°, dipping 60° to 80° W.

MSM and Cerrado geologists were discussing the possible interpretation of three distinct sub-corridors or trends of mineralization within this wider corridor. It is possible that the far western trend is composed largely of colluvium shed from the slope and the artisanal workings there may haveno immediate bedrock source. There are exposed bedrock sources of veining on the eastern side up against the cuesta wall. Extensions of the sheared granite cupola mineralization on the eastern side, under the quartzites, have been confirmed by drilling.

The field information obtained in the Serra Alta Deposit small pits mined by MSM caused it to classify the gold mineralization hosted in the cupola portion of the granite under the Reduced Intrusion Model. The mineralization occurs within a system of veins and veinlets commonly associated with zones of hydrothermal alteration. This system of veins and veinlets is characterized by quartz associated with gold and sulphides (pyrite, arsenopyrite galena, sphalerite and chalcopyrite), whereas the hydrothermal alteration is characterized by phyllic and propylitic alteration zones, as well as sulphidation and silicification.

The granite hosts a system of intersecting northeast-southwest-and northwest-southeasttrending veinlets, which occur in most areas of the deposit

The northeast-southwest-oriented vein system is millimetre- to centimetre-scale, but tends to be thicker and truncates the veins and veinlets of the older system. These veins are predominantly composed of milky quartz crystals, moderately fractured and medium to coarse grained. However, they exhibit borders and internal zones of expansion, often filled by sulphide minerals and gold, as well as rare aggregates of white mica + chlorite + carbonate. In this system, free gold can also occur, filling cracks in the quartz veins.

Occasionally a re-opening and filling phase of the northwest-southeast system is identified, passing through the northeast-southwest milky quartz vein system. This represents the last stage of dilation recorded in the granite dome. It is filled with aggregates of chlorite + white mica + carbonate ± pyrite as veinlets.

The presence of different phases of dilation is interpreted to be indicative of successive episodes of reopening and filling of cracks, which are independent, but can occur almost simultaneously or separated by short intervals of time. This characteristic refutes the model of effective and prolonged convective circulation of hydrothermal fluids, favouring the combination of successive fracture events in the cupola, the product of increased pressure of confined hydrothermal fluids (Jensen & Bateman, 1981; Guha et al., 1983; Foxford et al., 2000). The hydrothermal system is likely due to the exsolution of aqueous solutions from the granitic magma.

The Monte do Carmo Project will be an open pit operation with an average production rateof 2.65 Mtpa of ROM. Surface mining will use a contract mining fleet of hydraulic excavators, frontend loaders and haul trucks, as well as correspondent ancillary equipment.

Final Pit Design
The Mine Design or Pit Design consists of the designing an operational pit that allows a safe and efficient mining operation, based on the optimal pit. The methodology consists of establishing an outline of the toes and crests of the benches, safety berms, work sites and mining site access ramps while adhering to the geometric and geotechnical parameters that were defined. Given the nature of the report, GE21 did not include any access designs from pit to processing plant or waste dump. The following assumptions were adopted for the operational final pit shells for each period of mining:
- Maximize ROM recovery;
- Define access routes to attain shorter average transport distances.

Final Pit Design Parameters:
- Overall Slope - Angle 55°;
- Face Angle - 78°;
- Bench Height - 10 m;
- Berm Width - 5 m;
- Road Ramp Width 15 m;
- Road Ramp Gradient - 10%;
- Curves Radius - 22 m.

Mine Operation
Mine operation will begin on the South portion of the pit. Drilling and blasting of the fresh rock, mostly represented by granites, will be necessary to allow rock handling as materials classified as sedimentary are mainly situated in the north portion of the pit. Excavators will load the trucks, allowing the haulage of ROM material to the processing plant, while trucks filled up with waste will head to the tailings and waste dump.

Mine drainage is considered eventual, occurring only in the rainy season. Small structures including pumps and pipes assembled in operational sumps will be used to allow exhaust the eventual water in the bottom pit. The waste will be disposed in a dump alongside with tailings. The site shall be adequately prepared to include internal and peripherical drainage system to direct the flow of rainwater to containment structures, to assure the geotechnical stability and mitigating the erosion of the dump. The operation of this phase, in accordance with the ascending method, shall begin during the construction of the dump at the base of this area. Waste rock will be dumped by truck and spread by a dozer making small ponds that will receive pumped filtered tailings. Once the tailings are dry, the material will be uniformly spread and levelled. The procedure is then repeated, stacking another layer above the previous one, while maintaining a ramp for bench access. A more detailed study of the tailing’s features should be carried out for the correct disposal methodology development.

The following assumptions were adopted to elaborate the mine schedule:
- First year production: 1.32 Mt ROM (50% ramp-up);
- Production rate: 2.65 Mtpa ROM;
- Gradual increase of total mined tonnage;
- Maximization of Au content in the first years of production.

Crushing Unit
The ROM is unloaded by dump trucks directly into a fixed grid and ROM dump hopper. It is crushed in a closed circuit with primary, secondary and tertiary crushing and respective screenings with transfers between equipment made by conveyors belt conveyors. The option of unloading the dump trucks into a storage pile is foreseen, with resumption and feeding of the crushing circuit with a loader. Next to the fixed grid it is planned to install a hydraulic rock breaker for breaking blocks larger than 600 mm.

In a summarized manner, the oversize of a vibrating grizzly feeder discharges into a primary jaw crusher. The product from the primary crusher and the undersize of the vibrating grizzly feeder feed a primary vibrating screen, the oversize discharges directly into a secondary conic crusher. The secondary crusher discharge feeds a secondary vibrating screen, the oversize is discharged into a tertiary conic crusher. The tertiary crusher discharge feeds a tertiary vibrating screen in a closed circuit with this tertiary crusher. The undersize for tertiary screen is unloaded by a belt conveyor into a stockpile, from where the grinding and gravity concentration circuit is fed by a wheel loader.

Based on the preliminary crushing flowchart and the design assumptions, the mass balance for the three stages of crushing was estimated.

Equipment dimensions were estimated based on the crushing mass balance. Screens and crushers were estimated based on manufacturer catalog specifications. The dimensions of the belt conveyors were estimated based on the mass balance and considering the length of 50.0 m and the approximate inclination of 10º.

The process route was defined considering the results of the process development tests prepared by TESTWORK in four samples of the Project Cerrado deposit. However, information and data from similar projects were also considered, as well as information obtained from manufacturers.

Due to the good results of gold metallurgical recovery obtained in the gravity concentration tests, which achieved recoveries close to 80%, the centrifugal concentration was considered directly in the milling product, with the centrifugal concentrator receiving the circulating load directly from the ball mill, this circuit having been called OPTION 01. However, estimates were made considering the centrifugal concentration receiving the milling product with P80 = 106 µm (cyclone battery overflow), it has been called OPTION 02.

Grinding and Gravity Concentration OPTION 01
Ore crushed below 8.0 mm is periodically retrieved from the stockpile and fed directly into a hopper by a wheel lo ........