Exploration Project- Lavras do Sul

MULTIPLE ANOMALIES OVER MULTIPLE KILOMETRES

Our Lavras do Sul gold project is in southern Brazil in the state of Rio Grande do Sul. Located 320 kilometres by paved road southwest of the state capital city of Porto Alegre, it benefits from excellent infrastructure. The village of Lavras do Sul is a small farming community proximal to the Company’s exploration concessions.

LAVRAS DO SUL At A Glance

Located in Rio Grande do Sul, southern Brazil

22,000
hectares

Epithermal gold mineralization

23 defined
exploration targets

Goal: open second development front

Lavras do Sul encompasses a Neo-Proterozoic granite intrusion. Gold mineralization has been identified within the granite complex and in surrounding volcanic rocks. The gold mineralization is thought to be of an epithermal style and associated with intersecting fault structures.

We acquired options to explore Lavras do Sul from Rio Tinto in October 2006 and IAMGOLD Corporation in May 2008. These options cover a 220 square kilometre land package hosting at least 23 prospects centered on historic gold workings dating back to the 1700s.

Butia

Of the 23 known areas of historic gold workings on Lavras do Sul, we have done the most work on Butia where we have completed three drill campaigns on this prospect.

Exploration completed by previous operators in the 1980s included drilling at the Butia, which lies within 5 kilometres of the town of Lavras do Sul and is covered by old surface workings.

Three holes completed early 2007 returned encouraging results in drill hole LDH-01 of 169.4 metres at 1.0 g/t gold, and brought the drill rigs back for a second and third drilling campaign in 2008 and 2011-2012.

NI 43-101 Resource Estimate for Butia Prospect (September 2010)

Mineral Resource Estimate

An NI 43-101 compliant gold resource was released in September 2010. Two resource estimates were calculated, one using a cut-off grade of 0.3 gold g/t, and a second using a cut-off grade of 0.5 gold g/t.

	Tonnes	Grade (g/t gold)	Contained gold (ounces)
Cut - off grade 0.3 g/t gold
Indicated	6,390,000	1.05	215,000
Inferred	12,880,000	0.74	308,000
Cut-off grade 0.5 g/t gold
Indicated	5,300,000	1.18	201,000
Inferred	6,840,000	1.07	235,000

Notes

Subsequent drilling at Butia

In 2011 intercepts of 120 metres at 3.23 g/t gold and 232 metres at1.96 g/t gold confirmed significant vertical continuity of the system.

Drilling programs at Butia in 2012 generated significant results , especially in the higher - grade gold zone of the Butia deposit

drill hole LDH - 209 intersected 133 metres grading 2.65 g/t gold
drill hole LDH - 212 intersected 123 metres grading 1.49 g/t gold.

Regional exploration at Lavras do Sul

We have completed a 1,000 line kilometre UAV magnetic survey over the south west corner of the Lavras do sul Project. Survey results indicate strong magnetic correlation with fault structures north and east of Butia.

A 3,000 metre diamond drilling program and ground induced polarization geophysical survey was completed over select targets in 2020, and regional surface gold soil surveying program is underway targeting areas in the northern portion of the concession. Results will be used to help define priority drill targets for further testing.