The Tocantinzinho deposit is best classified as a granite-hosted, intrusion-related gold deposit. It has geological similarities to several other gold deposits of the Tapajos region. Host rocks include multiple texturally varied phases of dominantly granitic composition. Gold is disseminated, commonly shows consistent grades over wide intervals, and is generally accompanied by finely to coarsely disseminated sulphides (pyrite, locally chalcopyrite, galena, sphalerite). Isolated multi-ounce gold grades occur in intervals containing conspicuous quartz-galena sphalerite-chalcopyrite veins, and are not volumetrically significant. Most gold-enriched zones contain common thin (<1 cm) veinlets of quartz, chlorite, sulphide, ± calcite.

The Tocantinzinho deposit forms a sub-vertical, northwest-trending elongate body approximately 1,000 metres long by 150 metres wide. It has been drilled to approximately 350 metres depth and remains open below this depth. Within the mineralized granite gold grades are remarkably consistent with an average of 1.1 g/t.

Mineralized granites at Tocantinzinho are divided into two sub-units by alteration mineralogy and colour: smoky and salami granite. Grade distribution is similar in both units and therefore they have been grouped for resource estimation purposes. Both smoky and salami granites are composed dominantly of potassium-feldspar and large (mm- to cm-scale) distinctively amoeba-shaped quartz grains. The textural and compositional similarity in the two granitic host units leads to the interpretation that both represent the same protolith, but have undergone different alteration processes. The blebby, amoeba-like quartz textures and rare miarolitic cavities are interpreted to reflect a late-stage, volatile rich magma.

Smoky mineralized granite is strongly silicified with chlorite and trace to 1% sulfides. Color ranges from grayish to greenish due to the chlorite alteration. Sheeted milimetre-scale chlorite ± sulphide veinlets are common. Salami mineralized granites are distinctively bright red due to hematite dusting on potassium feldspars. Sheeted veinlets are common and similar in scale to those in the smoky granites but are generally filled with quartz ± sulphide. Contacts are diffused between smoky and salami granites and a complete gradation exists between the two units.

Hydrothermal alteration at Tocantinzinho includes a probable early potassic alteration event, a chlorite±sulphide phase, silicifi ation (both pervasive and related to quartz sulfide veining), and a late carbonate phase evidenced by fine calcite veinlets. The chlorite alteration consists of sheeted chloritesilica veinlets.

The mine was designed as a single open pit operation using 3 pit Phases mined over 11 years, including a pre-stripping year, with a peak mining rate of 26 million tonnes of material per year. The open pit is designed to a depth of 345.0 m using an overall slope angle that ranges from 35 - 43 degrees. The mining fleet was selected to excavate a 5.0 m bench using a truck and shovel fleet. The average cost of mining a tonne of material is estimated to be US$1.66/t based on a labour rate study and quotes for diesel, explosives and tires.

The mine will produce 4,400 ktpy of ore. The total ore to be mined is estimated as 49,047 kt with a LOM average grade of 1.25 Au g/t and an average waste: ore ratio of 3.27.

The process plant will have the capacity to process 4.4 million tons of ROM ore per year, with an average of 1.25 g/t of gold and metallurgical recovery of 90.1%, resulting in an average 159,000 ounces of gold per year. The process route will involve crushing, ball mill grinding, classification by hydrocyclones, gravimetry, flotation, intensive leaching and CIP (Carbon in Pulp) circuits.

The ore body has been classified into oxide and sulfide ores. The process of scrubbing the oxide ore was not clearly defined in the testwork. The solution of two distinct circuits for handling the ROM oxide and sulfide ores is based upon the mine plan identifying and delivering the ore to the correct dump hopper. The two distinct ROM handling circuits may result in a higher availability for the crushing and stockpiling circuit as a portion of the feed is sent directly to the ball mill discharge pumpbox.

The oxide ore fines broken down in the rotary scrubber are mixed with the ball ........