CAJUEIRO

39,053 ha, Mato Grosso and Para States, Brazil 

Numerous untested gold-in-soil anomalies. Trial mining permit in place.

Highlights

  • Historic placer gold workings previously produced +250,000oz Au. Mining licenses granted

  • 14,367m of drilling and 105 drill holes completed to date. 4,062m of trenching completed since 2016

  • NI 43-101 compliant resource based on 11,292m of drilling – 8.64Mt at 0.77g/t Au (for 214,000oz) of Indicated resources and 9.53Mt at 0.66g/t Au (for 204,000oz) in the Inferred resource category and additional 1.37Mt at 1.61g/t in Oxides (for 79,000oz in Saprolite) also in the Inferred category

  • Soil sampling has identified 10 gold anomalies of which 4 have been only partially drill tested

Description

The Cajueiro Project comprises a large land package located in the Alta Floresta – Juruena Gold Belt, a Proterozoic arc consisting of calc-alkaline granite-volcanic, and medium to high grade metamorphic crustal segments. Historic gold production in the belt is generally recognized to be in the range of 7-10MM oz., primarily from garimpeiro activity. At Cajueiro, microgranites and rhyolites host a set of Northeast (NE) and East-West (E-W) conjugate shear structures exhibiting late brittle deformation. These were the primary structural controllers of hydrothermal alteration and associated gold mineralization.

Gold and pyrite in the bedrock sulphide domain is contained within hydrothermal alteration envelopes within and adjacent to the structures. An alteration assemblage of sericite-epidote-chlorite-quartz readily distinguishes the prospective “green” rhyolite and microgranite from their unaltered reddish counterparts.

Gold is also present in the saprolite overlying bedrock, in the oxidized equivalent of the sulphide alteration assemblage. Prospective saprolite hosts an assemblage of sericite-chlorite-silica, with disseminated limonite and “box-works” of limonite with rare occurrences of chalcopyrite. This alteration package is clearly visible on surface in many locations throughout the property.

On May 2, 2016, the Company announced that an updated NI 43-101 Technical Report regarding the resource for the Cajueiro project (Gustavson and Associates, March 24, 2016) had been filed with SEDAR and made available on the Company’s website. Total resources within fresh rock(sulphide) were estimated at 8.64Mt at 0.77 g/t gold for 214,100oz in the Indicated category, and 9.53Mt at 0.66g/t gold for 203,500oz in the Inferred category at a 0.25g/t cut-off. Total resources within the saprolite or oxide zone were estimated at 1.37Mt at 1.61 g/t gold for 78,400oz.

Table 1-1 Mineral Resource Estimate (Fresh Rock – Sulfide Zone)

Effective date March 8, 2016

Table 1-2 Mineral Resource Estimate (Saprolite – Oxide Zone)

Effective date March 8, 2016

NOTE Numbers in the table may not precisely add due to rounding

Link to Resource Estimate

Since April 2016 the Company has completed 25 trenches totaling 4,062.5m that has resulted the identification of two new previously unrecognized mineralized zones, one at Baldo East and the other at Toninho, comprising multiple parallel structures similar to known zones at Crente and Baldo. In addition, the Company has drilled 49 HQ diamond drill holes totaling 3,153.5m. (Please see the full News Releases for detailed results of these programs)

The Baldo East target area is located approximately 500m due east of the Baldo resource and constituted an important previously untested gold-in-soil anomaly and a series of high-grade rock samples from surface which range from 3.4 to 118.4 g/t gold.

During 2016 the Company performed metallurgical testing on a composite sample of gold mineralized saprolite from the Baldo trenching program. Results indicated low recoveries from gravity processing, and identified recoveries of up to 96.2% from Carbon In Leach (CIL) processing. The Company continues to assess the feasibility of a fast-track to a CIL process and near-term small-scale production.

A series of NNW trending trenches were completed at approximately 100m spacings and have identified a series of previously unrecognized WNW trending mineralized structures

The 2017 trenching activity excavated at least two continuous high-grade mineralized structures in the Baldo East area – the northern most of these two structures is now referred to as Baldo East 1, whilst the zone immediately south of this is referred to as Baldo East 2.

Baldo East 1

Trenching at the Baldo East 1 zone extended the Baldo East 1 zone to the east, extending the total strike length to more than 900m.

Baldo East 2

Work continued on the Baldo East 2 zone, where previous trenching indicated the presence of parallel structures, with one trench exposing apparently parallel structures 250m south of the Baldo East 1 zone.

Current Exploration Update

On July 17, 2018, the Company reported that it had completed the first phase of the 2018 trenching campaign in the Baldo target. Seven new trenches were excavated in the Baldo and Matrincha target areas covering a total strike length of 1,218 meters. Three of the trenches were excavated to investigate the eastern extensions of both the Baldo 1 and Baldo 2 mineralized structures in the northern part of the Baldo target and a further three were excavated in the southern part of the Baldo target to investigate the source of high-grade gold in grab samples. The final trench was excavated in the adjacent Matrincha target to the south of the Baldo area.

Highlights were as follows;

  • Trench TCBL-32 was excavated along the eastern extension of the Baldo 1 structure, some 200 meters east of trench TCBL- 29 which returned 10m @ 1.8 g/t gold and 7m @ 1.8 g/t gold including 1m @ 7.2 g/t gold.

  • Trenches TCBL-30 and TCBL-31 were excavated on the eastern extension of the Baldo 2 structure some 200 meters and 400 meters, respectively east of trench TCBL-28, which returned 29m @ 3.0 g/t gold including 7m @ 5.4 g/t gold and 4m @ 8.1 g/t gold.

  • Three trenches, TCBL-33, TCBL-34 and TCBL-36 were excavated in the southern part of the Baldo target to investigate grab samples taken previously in the area in 2011-2012, which had returned values of 92.1 g/t Au and 44.5 g/ t Au. The three trenches cover an east-west strike extension of approximately 450 meters where there is no outcrop.

  • Trench TCBL-37 was excavated on the western side of the Matrincha target, adjacent to and south of the Baldo target area.

On October 17, 2018, the Company reported that it had been successful in discovering additional E-W trending structures at the Baldo and Matrincha areas. The Company has discovered an easterly extension to the Baldo 2 structure and has also discovered two new previously unmapped high-grade gold bearing structures to the south of the Baldo target.

Highlights were as follows:

  • Trenches TCBL-36 and TCBL-33 at Matrincha cut 5m @ 5.3 g/t gold (incl. 1m @ 24.0 g/t gold) and 2m @ 5.0 g/t gold + 1m @ 8.8g/t gold on a previously unknown E-W trending structure immediately south of the Baldo East target area, which has been named Matrincha 1. The total strike length of the Matrincha 1 structure thus far is 430m and it is open to the west and east.

  • A second E-W trending structure was identified 75m south of Matrincha 1 and returned 3.6m @ 30.2 g/t gold (including 1m @ 106.3 g/t gold) in trench TCBL-33 and 1m @ 18.9 g/t gold in trench TCBL-36. The total strike length of the Matrincha 2 zone to date is 445m and it is similarly open both to the west and the east.

  • 4m @ 8.4g/t gold was returned in Trench TCBL-38 from the Baldo East 2 zone and was excavated 100m west of TCBL-28 which previously cut 29m @ 3.0 g/t gold including 7m @ 5.4 g/t gold and 4m @ 8.1 g/t gold. The Baldo 2 structure is now known to extend 950m along strike and remains open to the east and west

Please see the Company’s News Release dated October 17, 2018 for additional details.

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