Tapajós

Overview of Tapajós Mineral Province

The Tapajós Mineral Province is a large (100,000 km²) gold producing area located in the Amazon Region of Brazil. Gold was discovered in this Province in 1747 with significant production from 1958. Gold output peaked in the 1983-89 period when more than 300,000 garimpeiros produced approximately 1 million ounces per year, predominantly from alluvial deposits. While the total gold production of Tapajós Mineral Province up to 1993 is officially estimated at 7 million ounces, actual production is considered to be approximately 18 million ounces, representing about 30 per cent of all garimpeiro production in Brazil.

The Tapajós Mineral Province has only recently been recognized as a significant bedrock gold province. This followed the realization that most of the alluvial gold deposits discovered and mined to date in fact represent locally transported eluvial deposits derived from nearby bedrock gold deposits. Access to these deposits, created by intense garimpeiro activity in the recent past, has encouraged renewed exploration activity and opened up major exploration opportunities.

The Tapajós Mineral Province, underlain by the Uatumã Supergroup which covers approximately 2.0 million km² (∼50 per cent of the Amazon Region), comprises extensively altered and mineralized Middle Proterozoic (∼1.8 Ma) felsic volcanic and intrusive magmatic rocks with minor sedimentary units. Hydrothermal gold deposits associated with the Uatumã Supergroup appear to be controlled by NE, NS and NW fault systems, including both fissure vein and vein-stockwork types of mineralization. There is obvious potential for a variety of medium (+0.5 million ounce) to large (+3 million ounce), open-pittable, oxide and mixed oxide/sulphide deposits.

Access throughout the Tapajós Province is predominantly by means of rivers (powerboats and barges), and the utilization of small aircraft (airstrips are maintained at most prospects). Land access is via the major unpaved Transamazônica, Cuiabá-Santarém and Transgarimpeira roads which cross the Province. Current access and operating conditions can be favourably compared to those existing in northern Canada.

The current portfolio held by Amazônia Mineração Ltda. comprises five gold properties (Fazenda Pisón, Alto Alegre, Garrafa, Agua Branca and Ratinho) located in the Tapajós Mineral Province. These prospects represent advanced exploration plays with defined drill targets. Primary mineralization is exposed in all of the five properties.