to view Almas Gold Project - Rio Novo Gold Inc.

293 Pages·2012·13.35 MB·English

Preliminary Economic Assessment
Technical Report of the Almas Gold
Project, Almas Municipality
Tocantins, Brazil

Prepared for

Rio Novo Mineração Ltda.

Prepared by

Pincock, Allen & Holt Brasil
in accordance with the Requirements of
Canadian National Instrument 43-101
Standards of Disclosure for Mineral
Projects

Effective date: April 03, 2012

BH-00042
Avenida Getulio Vargas, 1300 - #1801 [phone]
Funcionarios, CEP 30112-021 Fax: [phone]
brasil Belo Horizonte
Minas Gerais, Brasil www.pincock.com

Consultores para SoSoluções nas Áreas de Mineração e Financeira

Preliminary Economic Assessment
for the Almas Gold Project, Almas
Municipality,
Tocantins, Brazil

Prepared for

Rio Novo Mineração Ltda.

March 15, 2012

BH-00042

Prepared by

Paul Cézanne
David Pires, MAusIMM (CP)
Carlos Barbosa, MAusIMM (CP)
Donald Arsenault, P.Eng

part of the Runge Group
IMPORTANT INFORMATION ABOUT THIS DOCUMENT
1. OUR CLIENT
This report has been produced by or on behalf of Pincock, Allen & Holt (PAH) solely for Rio Novo (the
Client).
2. CLIENT USE
The Client’s use and disclosure of this report is subject to the terms and conditions under which PAH
prepared the report.
3. NOTICE TO THIRD PARTIES
PAH prepared this report for the Client only. If you are not the Client:

PAH has prepared this report having regard to the particular needs and interests of the Client, and in
accordance with the Client’s instructions. It did not draft this report having regard to any other
person’s particular needs or interests. Your needs and interests may be distinctly different to the
Client’s needs and interests, and the report may not be sufficient, fit or appropriate for your
purposes.
4. INPUTS, SUBSEQUENT CHANGES AND NO DUTY TO UPDATE

PAH has created this report using data and information provided by or on behalf of Rio Novo. Unless
specifically stated otherwise, PAH has not independently verified that data and information about the
legal, political, environmental and tax structure’s. PAH accepts no liability for the accuracy or
completeness of client provided data and information, even if that data and information has been
incorporated into or relied upon in creating this report (or parts of it).

The conclusions and opinions contained in this report apply as at the date of the report. Events
(including changes to any of the data and information that PAH used in preparing the report) may
have occurred since that date which may impact on those conclusions and opinions and make them
unreliable. PAH is under no duty to update the report upon the occurrence of any such event,
though it reserves the right to do so.
5. MINING UNKNOWN FACTORS
The ability of any person to achieve forward-looking production and economic targets is dependent on
numerous factors that are beyond PAH’s control and that PAH cannot anticipate. These factors include,
but are not limited to, site-specific mining and geological conditions, management and personnel
capabilities, availability of funding to properly operate and capitalize the operation, variations in cost

Pincock, Allen & Holt - Brasil 1
BH-00042 April 03, 2012
This report has been prepared for Rio Novo and must be read in its entirety and subject to the third party disclaimer clauses contained in the body of
the report
elements and market conditions, developing and operating the mine in an efficient manner, unforeseen
changes in legislation and new industry developments. Any of these factors may substantially alter the
performance of any mining operation.

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BH-00042 April 03, 2012
This report has been prepared for Rio Novo and must be read in its entirety and subject to the third party disclaimer clauses contained in the body of
the report
CONTENTS Page
1.0 SUMMARY 1.1
1.1 Overview 1.1
1.2 Location 1.2
1.2.1 Local Resources and Infrastructure 1.2
1.3 Project ownership 1.2
1.4 Geology 1.3
1.5 Mineralization 1.4
1.6 Exploration 1.4
1.7 Metallurgy and processing 1.5
1.8 Mining and Resource Estimation 1.5
1.9 Economic Analysis 1.7
1.9.1 Estimated Product Price and Revenue 1.9
1.10 Interpretation and Conclusions 1.9
1.10.1 Adequacy of Procedures 1.9
1.10.2 Adequacy of Data 1.9
1.10.3 Adequacy of Feasibility Study 1.9
1.11 Compliance with Canadian NI 43-101 Standards 1.9
1.12 Recommendations 1.10

2.0 INTRODUCTION AND TERMS OF REFERENCE 2.1
2.1 Project Background 2.1
2.2 Terms of Reference 2.2
2.3 Qualified Persons and Participating Personnel 2.2
2.4 Terms and Units 2.2
2.5 Units 2.5
2.6 Source Documents 2.5

3.0 RELIANCE ON OTHER EXPERTS 3.1
4.0 PROPERTY DESCRIPTION AND LOCATION 4.1
4.1 Property Location 4.1
4.2 Mining Rights 4.1
4.3 Surface Ownership 4.6
4.4 Royalties and Exploitation Taxes 4.7

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CONTENTS (Continued) Page
5.0 ACCESSIBILITY, CLIMATE, PHYSIOGRAPHY AND INFRASTRUCTURE 5.1
5.1 Access 5.1
5.2 Climate 5.1
5.3 Physiography 5.2

6.0 HISTORY 6.1
6.1 Project Ownership 6.1
6.2 Previous Production 6.2

7.0 GEOLOGICAL SETTING 7.1
7.1 Regional Geology 7.1
7.1.1 Corrego do Paiol Formation 7.3
7.1.2 Morro do Carneiro Formation 7.3
7.1.3 Granite Gneiss Complexes 7.4
7.2 Property Geology 7.4

8.0 DEPOSIT TYPES 8.1
9.0 EXPLORATION 9.1
10.0 DRILLING 10.1
10.1 Summary 10.1
10.2 Drill Hole Spacing 10.3
10.3 Drill Hole Locations 10.5
10.4 Downhole Surveys 10.7
10.5 Drilling Methods 10.7
10.6 Other Exploration 10.7

11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY 11.1

11.1 Sampling and Logging Protocols 11.1
11.2 Analytical Quality Control 11.1
11.3 Quality Control 11.2
11.4 Sample Security 11.3

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CONTENTS (Continued) Page
11.5 Sampling method and Approach 11.4
11.5.1 Diamond Drill Core Samples 11.4
11.5.2 Diamond Drill Core Density Samples 11.5
11.5.3 Diamond Drill Core Sample Recovery 11.5

12.0 DATA VERIFICATION 12.1
12.1 Quality Assurance/Quality Control 12.1
12.2 Assessment of Project Database 12.1

13.0 MINERAL PROCESSING AND METALLURGICAL TESTING 13.1
13.1 Metallurgy and Flow Sheet Development 13.1
13.2 Metallurgical Sample Selection 13.2
13.3 Metallurgical Testwork 13.10
13.3.1 Comminution Test 13.10
13.3.2 Comminution Tests and Simulations 13.13
13.3.3 Impact Breakage Testing 13.13
13.3.4 Bond Work Index Testing 13.15
13.3.5 Bond Abrasion Index 13.16
13.3.6 Particle Bed Compression Testing 13.17
13.3.7 Simulations 13.18
13.4 Cyanide Leaching and Gravity Concentration Test for Paioi Composite
Sample 13.18
13.4.1 Grind Size 13.18
13.4.2 Cyanide Concentration 13.20
13.4.3 Effect of Gravity Gold recovery 13.22
13.4.4 Results 13.26
13.4.5 Cyanide Leaching and Gravity Concentration Tests for the
Leach Pad Samples 13.32
13.4.6 Cyanide Leaching and Gravity Concentration Tests for Cata
Funda Samples 13.34
13.4.7 Cata Funda Results 13.35
13.5 Carbon-In-Leach (CIL) Test 13.37
13.5.1 Tests 13.37
13.5.2 CIL Test Results 13.39
13.5.3 Comparison of Leach and Carbon-In-Leach 13.39
13.5.4 Carbon-In-Leach 13.40
13.6 Vira Saia Testwork Results 13.42
13.7 Recovery Estimates 13.43

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CONTENTS (Continued) Page
13.6 Representativeness of Samples 13.44
13.6 Deleterious Elements 13.44

14.0 MINERAL RESOURCES 14.1
14.1 Topography 14.1
14.2 Paiol 14.2
14.2.1 Domains 14.2
14.2.2 Block Model Dimensions 14.2
14.2.3 Lithology and Density 14.3
14.2.4 Grade Capping 14.3
14.2.5 Compositing 14.5
14.2.6 Grade Interpolation 14.6
14.2.7 Resource Classification 14.8
14.2.7.1 Measured Category 14.8
14.2.7.2 Indicated Category 14.8
14.2.7.3 Inferred Category 14.9
14.2.7.4 Model Review 14.9
14.2.7.5 Paiol Resource Statement 14.10
14.2.7.6 Paiol Leach Pad 14.11
14.3 Vira Saia 14.13
14.3.1Saprolite Boundaries 14.13
14.3.2 Domains 14.13
14.3.3 Block Model Dimensions 14.14
14.3.4 Lithology and Density 14.14
14.3.5 Compositng 14.15
14.3.6 Grade Capping 14.15
14.3.7 Grade Interpolation 14.16
14.3.8 Resource Classification 14.17
14.3.8.1 Measured Category 14.19
14.3.8.2 Indicated Category 14.19
14.3.8.3 Inferred Category 14.20
14.3.9 Model Review 14.20
14.3.10 Vira Saia Resource Statement 14.21
14.4 Cata Funda 14.23
14.4.1 Domains 14.23
14.4.2 Block Model Dimensions 14.23
14.4.3 Lithology and Density 14.23

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CONTENTS (Continued) Page
14.4.4 Compositing 14.23
14.4.5 Grade Capping 14.24
14.4.6 Grade Interpolation 14.25
14.4.7 Resource Classification 14.26
14.4.7.1 Measured Category 14.27
14.4.7.2 Indicated Category 14.27
14.4.7.3 Inferred Category 14.27
14.4.8 Model Review 14.27
14.4.9 Catafunda Resource Statement 14.28

15.0 MINERAL RESERVES ESTIMATES 15.1
16.0 MINING METHODS 16.1
16.1 Mining Production Planning 16.1
16.2 Pit Optimization 16.1
16.2.1 Paiol 16.1
16.2.2 Cata Funda 16.5
16.2.3 Vira Saia 16.6
16.3 Mine Design 16.9
16.4 In Pit Resource Estimates 16.11
16.5 Mine Plan 16.12
16.6 Mining Operation 16.15
16.7 Equipment 16.16
16.7.1 Equipment Strategy 16.16
16.7.2 Productivity and Fleet Size 16.16
16.8 Development 16.19
16.9 Mine Schedule 16.19
16.10 Pit and Waste Slopes 16.20
16.11 Drill and Blast 16.28
16.12 Mine Safety and Rescue 16.28

17.0 RECOVERY METHODS 17.1
17.1 Crushing 17.1
17.2 Milling and Gravity Concentration 17.2
17.3 Leach & Carbon in Leach Circuit 17.2
17.4 Tailings Handling 17.3
17.5 Acid Wash, Elution, Electrowinning 17.3
17.6 Reagents 17.4

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CONTENTS (Continued) Page
17.7 Services 17.5
17.8 Process Water 17.5
17.9 Air 17.6
17.10 Power Supply 17.6
17.11 Water Supply and Distribution 17.6
17.12 Fire Water Distribution 17.6
17.13 Potable Water Distribuition 17.7
17.14 Sewage Collection and Treatment 17.7
17.15 Fuel and Lubricant Stoage and Distribution 17.7
17.16 Architectural Specifications 17.7
17.17 Workshop/Warehouse 17.7
17.18 Administration Building 17.8
17.19 Change House and Canteen 17.8
17.20 Assay Laboratory 17.8
17.21 Miscellaneous Site Buildings 17.8
17.22 Tailings Impoundment 17.8

18.0 PROJECT INFRASTRUCTURE 18.1
18.1 General 18.1
18.2 Site Plan 18.1
18.3 Administration, Plant and Mine Offices 18.1
18.4 Maintenance Facilities 18.1
18.5 Warehouse 18.2
18.6 Explosives Magazines 18.2
18.7 Communication System 18.2
18.8 Industrial and Mine Roads 18.3
18.9 Power line and Distribution 18.3
18.10 Waste Management 18.3

19.0 MARKET STUDIES AND CONTRACTS 19.1
19.1 Industry Trends and Pricing 19.1
19.2 Sales Strategy 19.1

20.0 ENVIRONMENTAL, PERMITTING AND SOCIAL 20.1
20.1 Introduction 20.1

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