Brazilian Gold Projects

The information and content of a scientific or technical nature contained in this corporate presentation has been prepared by or under the supervision of Everett Makela,P. Geo., VP Exploration for Equitas Resources Corp., a Qualified Person for the purposes of National Instrument 43-101.


Equitas, through Alta Floresta Gold, holds 100% working interest in six gold properties, and four production licenses, over 184,410 hectares of land in the Mato Grosso and Para states of Central Brazil. The project areas are highly prospective, with previous artisanal mining activity, and identified gold mineralization throughout. Equitas issued its initial NI 43-101 on the Brazilian flagship Cajueiro Gold project. Indicated Mineral Resources included 8.6m tonnes containing 214,000 oz Au at 0.771 g/t; and an Inferred Mineral Resource of 10.9 million tonnes containing 282,000 oz Au at 0.804 g/t. Equitas will be focused on expanding and defining additional gold resources at its Cajueiro Project.

The Cajueiro Project encompasses 39,053 hectares and is located 95 kilometers north of the city of Alta Floresta in Central Brazil. To date, 48 drill holes for a total of 11,292 metres have tested four zones: Marines, Baldo, Matrincha and Crente. At the Crente zone, the work has outlined an indicated and an inferred resource, while inferred resources were calculated for the Marines, Baldo and Matrincha zones. All of these zones have near surface oxide potential expansion. Exploration over the

last five years have identified five further anomalies within the property package that have similar surface expression to the Crente target.

The NI 43-101 resource estimate was prepared by Gustavson Associates of Boulder, Colorado and can be downloaded here or on www.sedar.com.

Current Exploration Program

The exploration program is the first phase of an extensive 2016 work schedule at Cajueiro and is focused on defining additional gold resource in the near-surface saprolite oxide domain along a highly prospective mineralized structural corridor. The program has been designed to increase resources at Cajuiero and provide further information to support open pit development.

Exploration Program Outline

The exploration program will consist of 20 HQ diamond drill holes totaling 1600m and 700m of trenching, targeted on a 650m strike length of mineralized corridor at the Baldo Zone. The trenching program initiated on May 11. Layne Do Brasil Sondagens Ltda. has been awarded the drilling contract. Two track-mounted rigs, a CS-1000\10 and CS-1500, commenced operations on May 20, and drilling and trenching is expected to be completed within a month.

Potential for Resource Upgrade

The Baldo zone currently hosts an Inferred Resource of 309,000 tonnes grading 3.029 g/t Au (Gustavson, 2016) in the oxidized saprolite. Previous exploration results reveal strong potential for resource upgrade in this target domain.

The 2016 exploration program has been designed to follow on previously reported sampling results which include grades of 5.77 g/t Au (RR1BDO, Figure 2) and 87.2 g/t Au (RCF1BDO, Figure 2) achieved from two 1-tonne composite surface samples of oxidized saprolite along the targeted corridor. The single drill hole completed to date on this structure targeted the extreme southwestern end, and intersected a core interval in the sulphide bedrock grading 1.48 g/t Au over 29.85m (DDH-055, Figure 2). In general the oxidized saprolite component of the mineralization contains significant enrichment in gold grades compared to the bedrock sulphide domain.

Surface sampling spread across the Baldo zone has returned significant gold values. Thirty four grab samples of saprolite returned values ranging between 0.01 g/t Au to 118.47 g/t Au, with 20 samples returning values > 0.5 g/t Au, and an average for the thirty four samples of 14.67 g/t Au. Additionally, a 100 kg sample of saprolite taken from the southern Baldo target area for metallurgical testing yielded a head grade of 8.9 g/t Au (Met Test, Figure 2).

Results to date at Baldo underscore the potential for delineation of significant high-value material amenable to open-pit mining methods. The oxidized saprolite can be extracted without the necessity for drilling and blasting, potentially resulting in very low-cost mining operations.

Results of previous work are summarized in Figure 2 below:


Equitas Resources Corp. Reports on Positive Metallurgical Testing from the Baldo Zone at its Cajueiro Gold Project

Major Highlights Include:

  • Results indicate gold recoveries of 93.7% to 96.2% are possible using conventional Carbon-In-Leach (“CIL”) technology for saprolite oxide mineralization at Baldo, in contrast to the lower than expected recoveries from gravity methods.
  • Decision to fast track straight to the CIL process, which shows higher recovery levels than initially planned for.
  • An engineering firm with extensive experience of gold processing in Brazil is being engaged to complete detailed analysis and design of a planned 250-400 tonnes per day (“tpd”) CIL test plant.
  • Extraction permits are in place for 50,000 tonnes per annum (“tpa”) of material from each of the Baldo and Crente bulk sampling licenses (in Portuguese – “GUIA” or Guia de Utilizacion).

Equitas Resources Corp. Reports Drilling Results from the Baldo Zone at the Cajueiro Project

Major Highlights Include:

  • Assay results identify 33 intersections of gold mineralization in saprolite and bedrock, ranging from 0.95 g/t Au to 4.07 g/t Au;
  • Combined with results from the previously announced trenching program, a 300m strike-length of gold mineralization (“Zona Dois” target) has been identified as first priority for detailed trenching and drilling;
  • Mineralized samples are being sent for Screen Fire Assay to check for the presence of coarse gold;
  • Plans are being made for exploration of three other significant target areas at Baldo where previous work has detected highly anomalous gold grades in saprolite, up to 118.47 g/t Au;
  • A structural re-interpretation at Crente Zone (“Crente”) has been drill-tested, results are expected shortly;
  • An updated NI 43-101 Report on resources will be issued once all results from the 2016 exploration program have been received and incorporated into the model.

The information and content of a scientific or technical nature contained on this page ('https://www.equitasresources.com/projects/brazilia...') has been prepared by or under the supervision of Everett Makela,P. Geo., VP Exploration for Equitas Resources Corp., a Qualified Person for the purposes of National Instrument 43-101.



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