Greenfield Exploration

The Pitangui project, located approximately 110 kilometres northwest of the city of Belo Horizonte in Minas Gerais State, Brazil, comprises approximately 180 square kilometres of exploration licenses and license applications covering the Archean aged Pitangui greenstone belt. Effective December 31, 2018, reported mineral resources at the São Sebastião deposit comprised inferred resources of 5.4 million tonnes grading 4.7 g/t Au for 819,000 ounces (see news release dated February 19, 2019).

Gold mineralization is hosted by a series of parallel and complexly folded horizons of banded iron formation ('BIF') separated by mafic volcanic and minor sedimentary units within the lower greenstone belt stratigraphy. Within the iron formations, gold mineralization is associated with sulphide replacement of primary magnetite bands, characterized by the presence of pyrrhotite and lesser amounts of arsenopyrite, pyrite, and chalcopyrite. Drilling to date has identified two main mineralized horizons, referred to as "Biquinho" and "Pimentoa", that occur approximately 100 metres apart vertically.

Several active mining operations in the Brazilian Iron Quadrangle exploit gold deposits of a comparable age, host rock type and mineralization style. Examples include AngloGold Ashanti's Cuiabá and Lamego deposits.