The Pitangui Project, 100%-owned, is located on an 180-square-kilometre land package in Brazil’s Iron Quadrangle, the second largest gold producing region in the country. Our focus is on the newly discovered São Sebastião deposit with an estimated resource of 679,000 inferred ounces averaging 5.0 grams of gold per tonne hosted in iron formations for which the region is well known (resources as at December 31, 2015). During 2016, approximately 7,500 metres of diamond drilling were completed to test targets along strike to the southeast and
southwest of the São Sebastião deposit having similar electromagnetic ("EM”) signatures and corresponding geochemical soil
anomalies to that of the São Sebastião deposit. To date, drilling has confirmed the presence of rock units similar to those hosting
the main São Sebastião deposit, which could potentially host additional mineralization. In addition, work commenced on various
technical and environmental studies to advance the economic evaluation of the project.
Diamond drilling will continue in 2017 to explore and expand the current resource base.