Cost of Mineral per oz.:
Para’s $750,000 exploration program at the Angelim Target has quantified a potential around 150,000 tons of saprolite and saprock materials in the top 25 meters of surface with an estimated average grade upper than 7 grams per ton of gold. A trial mining operation is being planned to process approximately 30,000 tons of material per year.
The Company has applied for and is expecting to receive a Trial Mining License by the middle of 2016. This license permits the extraction and processing of until 50,000 tons of material per year. Para has identified the possibility of assembling a modular 100 TPD mobile milling and processing plant at a budget cost of $1.5 million.
The Angelim Property includes two primary targets: Angelim (zones 1, 2 and 3) and Serrinha (Roque Pit Zone).
The Company’s exploration program of geochemistry validation of historical exploration, geological mapping, additional augering, trenching, shallow drilling and extensive geochemical analysis as a whole at the project, was focused mainly on the Angelim target.
The Angelim Target was discovered by historical auger drilling lines of holes over soil geochemistry and VLF geophysical anomalies. The Company has undertaken the mentioned exploration program which has confirmed gold mineralization and has estimated potential as well.
Presently, there are two primary targets on the Angelim Property (DNPM # 851.047/2005): Angelim & Serrinha.
The Angelim Target is comprised of a large anomalous geochemical footprint first identified by Anglo Gold in the 90’s and validated by Para over the last three years with extensive sampling, drilling and trenching. This large target area has been focused into 2 primary zones where mineralization was more evident by outcrops, high grade in the saprolite and evidence of mineralized vein systems.
The Serrinha Target is a historical gold-copper mine operated by local miners (garimpo) during the 80’s. There were both an open pit and underground operation there. Nowadays the open pit and old workings are flooded. Drilling indicates that the feeder vein system is present at depth. Additional drilling is planned for this target in the future.
The main gold mineralization in these targets can be classified as orogenic gold in shear zones. The systems typically are formed by discontinuities that could have been stretched, opened and pulled-apart, allowing ore bearing fluids to penetrate. This model is prevalent in the area, particularly in Zone 1 at the Angelim target, forming the main mineralized zone in the oxidized or near surface area (soil plus saprolite). Zone 1 as well as Zone 2 and Zone 3, which are nearby, form different parts of the same system and appear to have been supergenically enriched.
At the old pit on the Serrinha target, which is less than 1 km away from Zone 1, the mineralization has an oxidized and sulphidized gold-copper association, most likely originated from an IOCG system, many of which are well characterized in other exploration areas of Tucumã Project. These systems are related to Palaeoproterozoic aged granites which could be in the same structural system, that could have been reactivated and might have carried ore bearing fluids and trapped mineralization as well.
The following table shows the best channel sampling results in trenches at zones 1, 2 and 3.
The best drilling results are presented in the following tables for both Angelim and Serrinha targets:
In addition, the Tucumã Project hosts many other gold and gold-copper systems with known mineralization at Angelim’s neighbourhood which are potential targets for late stage further exploration. These targets might act as feeders for an enhanced Angelim’s plant in medium-term.
The total amount of capital required, including capex, to begin trial mining by the second half of 2016, would be around US$ 2 million. The trial mining operation is expected to generate a positive cash flow with excellent parameters. Part of the proceeds of the trial mining operation will be used for additional drilling to determine the size and extent of the mineralized gold system which is presently open at both North and South ends and at depth as well.