SL MINERADORA LTDA

BY: LUIS FERNANDO SANTANA DA SILVA – GEOLOGIST

Juํna – Mato Grosso – Brazil

 

 

 

Final Exploration  Report

3RD EDITION

 

 

DESCRIPTION OF THE AREA

 

 

 2005

 

 

 

 

PROCESS: DNPM No 867.231/95

EXPLORATION LICENSE: No 2.651/98

REQUIRED MINERAL SUBSTANCE: DIAMOND AND GOLD

ECONOMICAL MINERAL SUBSTANCE: DIAMOND

LOCATION: SรO LUIS RIVER BASIN

MUNICIPALITY: JUอNA – MT

 

 

 

 

TECHNICIAN IN CHARGE:

GEOLOGIST / GEOPHYSICIST  LUIZ FERNANDO S. S.

 

 

 

 

 

 

 

 

 

 

CONTENTS

 

PART I: PRESENTATION OF REPORT

 

1 – PROCESS IDENTIFICATION

 

2 – HOLDER IDENTIFICATION

 

3 – LOCATION OF THE AREA

 

4 – DESCRIPTION OF THE AREA

 

PART II: REPORT CONTENTS

 

1 – GENERALITIES

 

2 – INFRASTRUCTURE

 

PART III: METHODOLOGY OF TECHNICAL WORK PERFORMED

 

1 – PLANNING

 

PART IV: RESULTS OF TECHNICAL WORK PERFORMED

 

1 – EXPLORATION MESH

 

2 – GEOLOGY OF THE AREA

 

3 – GEOTECHNICAL DRILLING OF LOW DEPTH

 

4 – GEOTECHNICAL DRILLING OF MEDIUM DEPTH

 

5 – VOLUMETRICAL EVALUATION

 

6 – CHARACTERIZATION OF THE DEPOSITS

 

7 – CHARACTERISTICS OF MINERALIZATION

 

8 – SAMPLES AND VOLUMETRICAL TREATMENTS

 

9 – OCURRENCE OF GOLD

 

10 – OTHER MINERAL GOODS

 

11 – NEXT WORK TO BE DONE

 

PART V: QUANTIFICATION OF THE SรO LUIS DEPOSIT – 1

 

1 – CONTENTS

 

2 – METHODOLOGY OF CALCULATION OF RESERVES

 

3 – QUANTIFICATION OF THE DEPOSITS RESERVES

 

PART VI: ANALYSIS OF EXECUTABILITY

 

1 – EVALUATION OF THE GEOLOGICAL-GEOPHYSICAL-GEOMETRICAL PARAMETERS

 

2 – MINERAL EXPLORATION DATA INVENTORY

 

3 – GRADE FROM DRILL HOLES

 

PART VII: ECONOMICAL EVALUATION OF THE DEPOSIT

 

1 – ECONOMY

 

2 – MINE PLANNING

 

PART VIII: FINAL CONCLUSIONS

 

PART IX: BIBLIOGRAPHY

 

PART X: ATTACHED ITEMS

 

1 – MAPS

 

2 – DOCUMENTS

 

 

PART I: PRESENTATION OF THE PROCESS DATA

 

1 – PROCESS IDENTIFICATION

 

1.1  – Process nบ - 867.231/1995

1.2  – Exploration license nบ - 2.651/1998

1.3  – PUBLICATION DATE ON DOU – 11/11/1998

1.4  – PUBLICATION DATE OF THE DESCRIPTION OF THE AREA – 10/12/04

1.5  – REQUIRED MINERAL SUBSTANCE – Gold and Diamond

1.6  – EXPLORED MINERAL SUBSTANCE – Gold and Diamond

1.7  – MINERABLE MINERAL SUBSTANCE – Diamond

 

2 – HOLDER IDENTIFICATION

 

2.1 – HOLDER: SL Mineradora Ltda.

 

2.2 – ADDRESS

2.2.1 – Matrix .......

2.2.2 – Correspondence .......

2.2.3 – Enterprise.......

 

3 – LOCATION OF THE AREA

 

3.1 – TERMS OF THE AREA

 

Sใo Luis River Basin. It is located at the 1st Phase of Juํna Project,             Juํna – MT, and inserted in the important Mineral Diamondiferous Province, including the Drainage Basins of Sใo Luis and Juininha Rivers as well as their tributaries of 3rd order.

 

3.2 – ACCESS

 

The access via road is by Federal Motorway BR-174 (Juํna-MT to Vilhena-RO Motorway) until KM 30 turning right by Linha 03 until KM 10 and then through an extension to the right for 1 km until Sใo Luis Farm, SW to the area in Sector 1. See maps SLML – 01 and SLML – 02 below.

 

3.3 – MUNICIPALITY: Juํna

 

3.4 – STATE: Mato Grosso

 

3.5 – AREA IN HECTARES: 1,889.13.

 

4 – DESCRIPTION OF THE AREA

 

The area belonging to SL Mineradora LTDA in reference to DNPM-MT Process nบ 867.231/95, according to the new adequacy published on D.O.U in 10/01/2005 is 1,889.13 hectares.

 

-         Effectively exploration area: 1,889.13 hectares;

-         Diamond mineral deposit limit area: 1,889.13 hectares

 

The area is delimited by a polygon with a vertex at 8,245 m (Vertex – 1) on the true direction of 33บ20’ NW, at the reference point with geographical coordinates of:

 

.....South Latitude

.... West Longitude

 

The delimitating polygon of the area has 10 vertexes, which, from Vertex – 1, and covering – if clockwise – presents the following sides with lengths and true direction in Table – 01 below:

 

FROM VERTEX / TO VERTEX / LENGHTS / DIRECTIONS

 

PART II: REPORT CONTENTS

 

1 – GENERALITIES

 

1.1  – INTRODUCTION AND RECORDS

 

SLML – SL MINERADORA LTDA is the holding company of the area of 1,889.13 hectares covered by Exploration License nบ 2.651/98 in reference to DNPM Process nบ 867.231/95, according to records in Table – 02 below, qualified to explore diamond and gold in Aripuanใ Province, Juํna, Mato Grosso.

 

DNPM PROCESS Nบ / EXPLORATION LICENSE Nบ / FROM / PUBLICATION ON D.O.U / AREA (ha) / REGISTRED IN B-PG BOOK PG / IN

 

DNPM – MT INSPECTION TECHNICIANS / INSPECTION DATE / ADEQUACY DATE OF PUBLICATION ON D.O.U. / ADEQUATED AREA (ha)

 

This work corresponds to the 3rd Edition of the Final Exploration Report, containing the results of geological-geophysical exploration work performed by SLML until January/2005, fulfilling the DNPM requirements, after the publication of the Description of the Area on the D.O.U.

 

The procedure of new calculation of the area deposits reserves was mainly due to the following factors:

 

- Final resolution of divergence in limits of area which resulted in the publication of the Description of the Area, establishing the a surface of 1,889.13 hectares, which made the polygon of cubed area be altered;

 

- The resignment of the Approval Area of 40 hectares, given to the former owner (cancelation between SLML and Mr. Osvaldo Pires) which resulted in the addition of gravel areas – C mineralized with diamond;

 

- Discovery of new anomalous areas corresponding to the Prospect Basins with economically minerable medium grade, creating deposits with average grades of 1.26 ct/m3.

 

SLML restarted its systematic geological exploration work in Aripuanใ Province in 2000, aiming at finding new mineralized areas in diamond and gold, specially in the basins of Sใo Luis, Juininha and Cinta Larga rivers. Due to the heterogeneity of the mineralized geological environment (mineralized gravel levels in secondary environment) in Sใo Luis basin area and proximities, the works continued until January/2005 with volumetric samples and improvement tests for calculation of reserves and real grades.

 

In November/2000, SLML performed a ground mag, covering specially Sectors 1 and 4, as part of an ample mineral exploration program in the region and area. This research became a basic and defining tool of the structural families which conserve mineralized horizons out of surface visual range. Aimed at specific targets, a radiometric intervention of total score to find hydrothermal transformations, radiogenic anomalies and auxiliate in mapping large geological units of the area was also performed. These geophysical data, in addition to the verified litology (mineralized gravel levels, pipes, dikes, sills and gaps), correlation of intrusions with structural events and anomalies of diamondiferous gravels verified in secondary environment of low and medium depth, allowed to conclude that the Sใo Luis River Basin is a prospect of high economical perspective diamond, once it was proved it can be done.

 

From these conclusions, in January/2001, a phase of detailed volumetric sample in untouched secondary deposits in Sector 1 of the area was begun. The schedule planned to measure reserves and real grades, so improvement tests in geometrical panels supported by little investments in acquisition of machinery and equipments, improvement of Duplicated Fixed Ramps, Fixed and Mobile Ramps, technical training of operational workforce, improving not only the processing quality and quantity, but also its economic, maximizing production with low levels of loss as well as reducing cost with a better organizational control, system electrification and acquisition of a diamond recovering machine – Flow Sort – fundamental factors for the success of the project.

 

In December/2004, when the Description of the area was published (10 December 2004), which definitely confirmed the Area Polygonal, SLML performed with the recalculation of the secondary deposits reserves of colluvial terraces, transition areas, alluvions and paleocanals, old mineralized prospect basins, adequating the new area, the updated reserve of SL1 deposit.

 

The strategic positioning of the area located in the central part of contact between two large stratigraphic units of the region, Craton Guapor้ and Parecis Group Sediments, awards them particular importance to the level of creation of economical potentially reserves for diamond and other correlated mineral goods, a fact that has been taken into account in particular exploration programs and investments, being this positioning as important as the existing mineral resource itself.

 

Along with that, the expansion of researches are anticipated, now aimed at primary horizons and the development of mining activities for the next years involving initially sector 1 of the area which covers all geological-structural-magnetic systems of genetic importance of the blocked economical resource.

 

The volume of mineralized gravel with diamond were of 7,713,770 m3 with average grades of 1.6458 ct/m3 in the deposit and of 0.19 ct/m3 at the 1st level of the sedimentary package, outcome which created a mineral grade of 12,695,325.70 ct of diamonds with varied granulation, colors, purity, and physical-chemical classification.

 

Also in December/2004, a medium geotechnical probing depth test was initiated, with the objective of defining the real thickness of the area sedimentary package (1st and 2nd level) and the levels of gravels – C3 stored at the base part of this profile (after the +- 12m depth  clayish “false bedrock”).

 

Considering the aims of its management office, from the investments performed in 2004, SLML defined for the next years, as prioritary goals, the sustainability of little investments in improvement of plants and treatment ramps, improving not only the quality of processing, but its economy and electrification as well, important aspects for the project feasibility in the first 10 years to come.

 

The present area’s holder is ready to initiate an open-air mining project guided by the Mining and Environmental Law in vigor, for it is elaborating the PAE – PLANO DE APROVEITAMENTO ECONิMICO (ECONOMICAL UTILIZATION PLAN) and the PROJETO INTEGRADO DE MINERAวรO (UNIFIED MINING PROJECT) for the future phases of the project.

 

For the fullfilment of the present research program, the Specialized Department of Geology-Planning-Mining determined the command and technical responsibility to geologist/geophysicist Luiz Fernando S.S, working for this mining company since 20th August 2000.

 

The Situation (SLML – 01)  and Details (SLML – 02) maps of the research area follow below.

 

2 – INFRASTRUCTURE

 

Area built for the Central Base Camp with approximately 1.50 hectares of area, containing: a LFA (X-ray Sorting House) with a Flow Sort recovering diamonds at a 100% level; dormitories, refectories, garage, storage room, infirmary, security lodge, etc. qualified technical and operational staff. 110 volts electrical energy availability 24 hours/day and specific generating groupscapable of generating energy from 220V to 380Volts for garage and LFA special needs, as well as water for housing supplying, LFA, garages, office, with semi artesian wells with capacity of 2500 m3/hour each well – (reservatories of 25,000 and 15,000 liters).

 

There is a telephoning system with DDD – 66 (Long distance call), connecting all mines to the office at the Central Camp in Sector-1, and vsp Internet provider.

 

PART III: METHODOLOGY OF TECHNICAL WORK PERFORMED

 

1 – PLANNING

 

The research methods were carefully chosen for diamond and gold, traditionally used in prospect researches, low and medium geotechnical probing depths, wells, trenches and volumetric tests, mainly aimed at:

 

a.      Determination of thickness of sterile covering and levels of gravel – C, possibly mineralized at the 1st sedimentary level;

b.     Determination of the gravel volume in each deposit and its corresponding sterile level;

c.     Determination of typology of levels of gravel;

d.     Correlate each type of gravel as regards to its grade of involved mining satellites and the present mining degree;

e.      Reserves of studied mineralized deposits;

f.       Elaboration of the Final Research Report.

 

1.1  – BIBLIOGRAPHIC SURVEY

 

The bibliographic surveys aimed at defining of economical prospects e elaboration of preliminary basic plants for field checking.

 

1.2 – INTERPRETATION OF LAND SAT IMAGE

 

Important auxiliary tool for delimitating regional and local structures, lined drainage, vegetation, among others.

 

1.3 – ELABORATION OF BASE PLANTS

 

Making of maps of land accesses and location of main drainages, preliminary grade, in adequate scale of 1:10,000.

 

1.4 – RECOGNITION OF ACCESSES AND CONTACT WITH LOCAL OWNERS

 

The verification of land accesses to the nearest points to the access roads and obtainment of authorization from local owners for the performance of the research work was made obligatory.

 

1.5 – RESEARCH MESH

 

Location at area field and establishing of the differential mesh starting point, with section breaks and specific holes for each sector, according to its geological-geophysical-structural-geometrical characteristics. After the new polygonal publication, adequacies at the N limits were made.

 

1.6 – TOPOGRAPHICAL COTES SURVEY

 

Together with the probing mesh magnetic surveys, the taking of cotes to level the studied geological environment was performed, and its dimension was included in the Geomorphological Map presented in the 1st version of the Final Exploration Report.

 

1.7 – GEOLOGICAL-STRUCTURAL MAPPING

 

The objective was to identify the large geological units, its typologies, the related deposits of primary and secondary degree, correlating them stratigraphically and temporally, and reproducing in adequate scale maps.

 

1.8  -  LOW GEOTECHNICAL DEPTH PROBING

 

Program to define depths up to 12m, the shallow probing 1 mechanized auger MB 1/A, Yanmar, NG-147 model, 5 inches. The aim was the thicknesses of the studied geological environment, trying to define the vertical and horizontal continuities of levels of C mineralized with diamond, and with descriptions, measurements and packing of the probing proofs.

 

1.9  – MEDIUM GEOTECHNICAL DEPTH PROBING

 

A probing was specially programmed to reach depths of up to 30m. This probing was performed with a 3” reverse circulation rotative probe, with pole for collecting proofs of 1m depth. The aim was the definition of thickness of the studied environment sedimentary package, aiming at giving emphasis to the vertical and horizontal continuities of levels of C mineralized with diamond, specially to base levels containing mineralized thick clastics, with descriptions, stratigraphical measurements, litological and mineralogical analysis, and packing of C studied levels.

 

1.10 – TREATMENT TESTS

 

Over positive prospects of the trenches, the apertures of geometrical panels were placed, which measured 10x20m and 10x40m initially, for the calculation of volume and grade of the studied geological environment. The panels were sequentially opened in a parallel and longitudinal way to N, facilitating the dumping of rejects from the process of mineralized C levels.

 

Following the new panels operations, the removal of the overburden of sterile Level A1 is performed for one side, and sterile Levels B1, B2, B3, B4 and/or B5 for another side. On mineralized C levels, the dismantling of the contained mass forming a humid pulp was performed, in order to prepare for the start of  extraction process by high pressure spouts/jets and 4” hosepipes, and processing in duplicated fixed plants – PF, fixed ramps – RF and mobile ramps – RM established near the dumping bowls.

 

PART IV: RESULTS OF TECHNICAL WORK PERFORMED

 

1 – RESEARCH MESH

 

SECTOR – 1 / SECTOR – 2 / SECTOR – 3 / SECTOR – 4

 

The importance of directions, intensity of structural-magnetic domains, influenced on the decision of the aperture of the differential mesh in the sectors, FIG. 01 above, for the pioneering surveys, according to Table – 03 below:

 

SECTOR / SECTIONS BREAKS / DIRECTION / MESH / LINEAR KM

 

2 – GEOLOGY OF THE AREA

 

The adequacy of data of the geological-structural mapping of the area, according to the new polygonal, ranged 56.60 linear km, covering 4 sectors, with 300 geological stations described and reproduced in SLML – 02A Map below. The geological units of the area suffered intense manifestations derived from events which created the structural-magnetic domains, from the following families of faults:

 

Family......

 

The positioning of mineralized C levels is strategic and lies in a zone which is tectonically near the contact of two large regional units, the Fanerozoic Sediments to S and the Meridional Portion of Craton Guapor้ to N. Five different environmental compartiments of a structural-magnetic conotation are defined below:

 

2.1 – BASEMENT

 

Formed by rocks from the Xingu Complex, characterized by alkaline-feldsphatic granites, strongly intemperized, as well as migmatits, local gneiss, amphibolites and metasediments which constitute the local bedrocks. The granitic/gneissic land have slightly wavy morphology of Archean-Proterozoic evolution which intregrate the Craton Guapor้. There are evidences of altered basic-ultrabasic volcanic intrusions cutting the basement, and maintaining discordant overlapped contacts with the fluvial sediments from the Parecis Group.

 

2.2 – INTRUSIVES

 

They correspond to basic-ultrabasic volcanic rocks which form reliefs in an altered nuclear shape, dikes, sills, cutting rocks from the granitic/gneissic basement. Its soil is brownish red with slight yellow spots, strongly altered by  intemperic physical-chemical and hydrothermal-mineralogical effects, forming zones which are rich in piroxenites, hornblende, chlorite and opals. In the interfaces it is found large quantities of thick clastics mineralized with diamond due to the formation of S2 structural traps, as minerable prospects. They are more expressive in W area of Sector –1, where there are the dikes, sills, porphyry dykes and kimberlitic-lamproitic nucleus, where olivine, piroxenites, magnetite, apatite, ilmenite, cyanite, piropo garnets and zircon are predominant.

 

2.3 – SEDIMENTARY COVERS

 

It is constituted of irregular levels from Casa Branca Farm formation, which is at Parecis group from the Superior Cetracious Age (?) with great litological varieties and depositional environments containing levels of C gravels mineralized with diamond. These covers occur discordantly overlapped the basement rocks and due to faults over mafi-ultramafic intrusives of the region. Thus, elevated grades of thick clastics are concentrated on the serval structural-magnetic traps from Families S1, S2, S3 and S4 domains.

 

2.4 – LATERITIC-DETRITAL COVERS

 

These form a thick hardened lateritic crust of large linear extension which protect and hold thick levels of C gravels mineralized with diamond. They derive from unconsolidated sediments and/or elevation of the granitic basement.

 

2.5 – UNCONSOLIDATED SEDIMENTS

 

Originally from the strong distal fluvial gradient and imposed to structured environments of terraces, transition zones, modern alluvia, shallow and deep paleocanals. They frequently appear in the fillings of structures from S1, S2, S3 and S4 domains, forming expressive deposits mineralized with diamond, of average thickness of +- 4.30 m, with C level at +- 0.50 to +- 1.00 m. The contact relations of the alluvial sediments with the intrusives and Parecis group are temporally, litologically and erosively discordant.

 

2.6 -  SรO LUIS KIMBERLITES (SS1)

 

They occur in stable cratonized regions constituted of varieties of dikes and pipes relates to S2 Structural-Magneetic System, breccian-shaped, pipes whose extensions are controlled by deep fractures filled with transported sedimentary materials, where it is believed to reach asthenosphere. These intemperized materials, due to geophysical results suggest subvertical cylindric shapes of dimensions of not more than 200x100m. On surface they are brownish-purple intemperized masses catalogued at 10m average.

 

Kimberlites are alkaline peridotites which invaded the Xingu Complex and Parecis Group interlockings, and at the last one contaminating the base level of Casa Branca Farm Formation.

 

The indicating minerals are preferably cromo-magnesian ilmenite (pricoilmenite), titaniferous ilmenite, chromic (green) diopside, and chromic piropo garnet, possibly with a low Ca grade. The composition seems very changed, due to mineralogical-hydrothermal alterations in its ascension towards surface by acquiring mineral from different rocks crossed by the intrusion (xenolith). At the level of superficial occurence, they are sometimes considered as microgaps formed by peridotic paragenesis minerals, collected in different levels of the mantle and crust.

 

2.7 – SรO LUIS LAMPROITES (SS2)

 

The dark green lamproitic masses which are saturated in silica, rich in magnesium and potassium and different from the potassic and leucite rocks. Its mineralogy indicates a strongly peralkaline original magma, also with a high grade of titanium (TiO2).

 

The lamproitic zones prove on the treatment tests to be the richest in diamonds than the kimberlitic gaps, varying from 3.0 to 13.0 ct/m3, to 1.0 to 5.0 ct/m3 in the gaps. Both zones are mineralized with diamond and must be exhaustively researched and entirely mined after the C1 C2 and C3 thick clastics as well as the base levels of Casa Branca Farm Formation.

 

2.8 – SรO LUIS GAPS (SS3)

 

In the intemperized occurrence of Sector – 1, the kimberlites were initially regards as brownish green microgaps formed by fragments of various sizes and shapes and minerals from micaceous peridotitic nucleous collected in different level of the mantle and crust.

 

The mineralogy of these lamproitic masses indicates strongly peralkaline magma (defficient in sodium and aluminium) and possibly with high grade of titanium (TiO2), titaniferous phlogopite, amphibole, diopside microcrystals, titaniferous magnetite, ilmenite and anatase. The main indicators of these diamondiferous occurrences are prederite, wadeite (Zr2K4Si6O18), phlogopite rich in Ba and titaniferous chromites.

 

More specific studies of the origins of the diamonds in kimberlitic gaps and lamproitic zones were not sufficiently performed through the mining company prioritary planning which invested resources in order to immediately block immediate yield secondary reserves.

 

2.9 – STRUCTURAL ASPECTS

 

The area is marked by a group of structural families involving longitudinal linings of 1st and 2nd orders, subvertical faults, fractures, shear stains zones, abrupt contacts, discordances, dykes and sills.

 

GEOLOGICAL MAP: SLML –02A

 

3 – GEOTECHNICAL DRILLING OF LOW DEPTH

 

-         Linear kilometers researched: 56.60;

-         Number of holes performed: 257;

-         Number of positive holes for diamond: 235;

-         Number of negative holes: 22;

-         Depth in meters researched: 995.6;

-         Variation of thicknesses of C levels in meters: 0.10 – 2.35;

-         Variation of thicknesses of sterile levels in meters: 1.00 – 5.00;

-         Occurrence of gold: 00.

 

C levels proofs were analyzed for diamond, gold and satellite minerals, by wash through 4 differential granulometric sieves of +1.0 mm to 4.0 mm, and a five-liter bowl to verify gold. The granulometric results were: Pebble - Thick (SG): > 200 mm; Medium – Thick (MG): 120 – 200 mm; Medium – Medium (MM): 60 – 120 mm; Thin – Medium (FM): 40 – 60 mm; Thin – Thin (FF): 40 – 20 mm; Bowl concentrated (CB) < 20 mm.

 

4 – GEOTECHNICAL DRILLING OF  MEDIUM DEPTH

 

This new phase introduced in November-December 2005, FIG. 02 below, was specially adopted to characterize the real thickness of the sedimentary cover of the area, which was discussed many times due to the occurrence of false bedrocks, common at +- 4.00 – 8.00 m depth, considering the constant interruption of traditional holes at this hardened clayish-sandy level without the textures  and structures of the granitic-gneissic basement known in the region. Five holes level tests were performed in W of Sector – 1, with 89.00 m where the first three holes were performed at L21 next to central camp, whose typical profile revealed 3 levels of C gravels, 2 of them being at traditional depth level of 12.00 m, and a third one being at base level, at 1.00 to 20.00 m.

 

FIG 02: SCHEMATIC GEOLOGICAL SECTION

HOLES WITH ROTATIVE PROBE – MEDIUM DEPTH

 

Typical in situ profile of deposits from colluvial terraces in Sector – 1 =

 

       Level A1 = brown low thickness sterile organic layer (+- 0.50 m);         Level B1 = reddish-yellow sandy-clayish medium thickness sterile layer of    +- 1.00 m; Level C1 = limonitic-quartz aggregate with blocks and remnant lateritic nodes, mineralized with diamond; Level C2: reddish-white limonitic-quartz aggregate, gradually mineralized passing to level C3; Level C3: roselike-grey-smoked-white quartz gravel, involved in a mineralized fundamental mass which was whitened and sandy-clayish, sometimes reddened; Level D = corresponding to hardened granitic saprolite.

 

5 – VOLUMETRICAL EVALUATION

 

Until January 2005 the evaluation was made with panels with an apperture of  10x30m to 20x90m and +- 4.0 to +-10.0m depths.

 

The advances have been paralleled and with ascending inclination of +- 05% for water drainage from more elevated cotes.

 

The objective inside the panels was the dismantling of C levels producing a representative volumetric sample of the deposit, which were processed in primary and secondary jigs (Duplicated Fixed Plants – PF).

 

Approximately 32.54 hectares were tested, +- 1.82% of the surface of this Research License located in Sector – 1.

 

In 2004, the test allowed to determine an average grade of 1.53 ct/m3 in the deposits and 0.44 ct/m3 in the sedimentary package, whose average result in 2001-2004 was 2.55 ct/m3. The integrated grades between the researches and volumetric samples resulted in a final average grade of 1.6458 ct/m3 in the deposit and 0.19 ct/m3 in the sedimentary packages, which currently represents the real anomaly of Sใo Luis deposit .

The possibility of adding the mineralized volume since the confirmation of the medium geotechnical probing results is real, because C3 gravel levels were detected at +- 20m depth, beyond the confirmation of primary deposits (saprolites from SS1, SS2 and SS3).

 

6 – CHARACTERIZATION OF THE DEPOSITS

 

6.1 – MORPHOLOGIES

 

Colluvial terraces, transition zones, alluvia, shallow and deep paleocanals, Paleozoic Formations which are slightly wavy as well as recent sediments, beyond primary environments of difficult visual reach.

 

6.2 – GENETIC MODEL

 

6.2.1 – Primary deposits: Kimberlites and lamproites are primary magma substances derived directly from the fusion of the base, which might have been generated by immiscibility from a silicated super magma or by fractionated crystalization. Studies of details on the evolution of pre-mining and mining phase will help to define the advent of economical reserves of this level.

 

This magma which is mineral and its mineral phases will be able to generate secondary economic value among them: anatase, apatite, pyrochlore, monazite, which are minerals crystalized during the kimberlites and lamproites genesis, and remain disseminated in the magma that collected diamonds formed at the base and transported them until the surface and/or near it where they were exposed to the intemperic processes, eroded enriched the conjugated flood plains, also contaminating the interlocks (e.g. Casa Branca Farm Formation base level from Parecis Group) by mineralized magma injection through clefts, dykes and sills.

 

In these explosive contact gaps (SS3) were created and tested with success by the treatment tests, and revealed to be rich in olivine, pyroxene, prico-ilmenite, piropo garnet, zircon, magnetite and apatite.

 

6.2.2 – Secondary deposit – Two subsystems were defined:

 

      Continental Sedimentary – Diamondiferous C gravels deposits were formed in continental sedimentary environments, without sea water;

 

      Hydathogenic Sedimentary by Mineral Substitution - Diamondiferous C gravels deposits were formed in sedimentary environments as consequence of circulation of non magmatic water in terrace environments, transition zones, alluvions and paleocanals.

 

The mineralization of the area is known thick clastics deposits which were defined as C1, C2, C3 and C4, according to the nature of its litological components. They are extended, irregular, sub-plain levels of varied thicknesses, which enriched the local environments.

 

These deposits were supplied with pipes erosion, dykes, sills, kimberlite-lamproites and gaps from Aripuanใ Province, which has already produced approximately 3 million carats of diamonds.

 

6.3 – PARAGENESIS

 

The frequent mineral of the area  and that will be able to become an economic source are titanium ones: anatase (TiO2) and ilmenite (Fe, Mg, Mn) TiO3.

 

Other minerals of genetic importance are: piropo garnet, cyanite, chalcedony, zircon, hematite, magnetite, turmalinite, roselike-saccharoidal-smoked-opaque- hyaline-white quartz, amethyst quartz, silex, agate, carbonate, limonite, goethite and oxides in general.

 

6.4 – LITOLOGIES

 

Sedimentary covers, laterite-detritic covers, unconsolidated sediments.

 

6.5 – STRUCTURAL ASPECTS

 

They are stratiphormical bodies formed inside of layers or paleocanals of porous litologies (arenites and conglomerates), confined by impermeable (argillites) or semi-impermeable (silts). They are noted crossed stratifications, uncontinued structures, horizontal-subhorizontal lamination, convoluted beds, subvertical structural-magnetic linings, ( S1, S2, S3 and S4), fractures, dykes and sills.

 

The most observed transformations indicate hydrothermal-mineralogical alterations, specially in the proximities of the structures convergence (sometimes denoting breccian aspects), provenient  from hydrostatic and/or liostatic pressures of the involving pivots.

 

6.6 – AGE

 

By the identified characteristics, secondary hydathogenic deposits are, in the vast majority, post-diagenetic from the Mesoproterozoic (1.700-1400 MY) and from Cambrian (530-300 MY).

 

6.7 – STRUCTURATION OF TERRACE TYPICAL PROFILE AND TRANSITION ZONE

 

SCALE

 

FORMATION CLIMATE

Humid tropical and Dry tropical

 

ARGILMINERALS OF PREDOMINANT SATELLITES

Kaulinite, Fe and Al hydratated oxides, anatase

Ilmenite, rare smectites

Limonite and neoformed goethite, hematite

Little magnetite

 

DESCRIPTION OF HORIZON

AR/AG, rich in organic material

AG/AR, VE/AM with noddles

AG/AR credit to goethite mottled zone AM-LAR/VE

Limonite-goethite/quartz aggregate with diamonds of 0 > 4.0 mm (80%)

Quartz limonite-goethite aggregate with diamonds of 0 > 4.0 mm (70%)

Freatic Surface (SF1)

AG, little AR, AM with oxidized spots (False Bedrock)

AR, VE, easily breakable, rusting front, whose cover is incorporated to the duricrust (?)

Fragmented level of F/M, BR/CZ/CREME gravel

SF2

Granitic saprolite with structures from the preserved healthy rock, overlapped to the freatic with alkaline PH and neutral and reducing  Eh

Hard granitic rock

 

TABLE – 04: TERRACE TYPICAL PROFILE AND TRANSITION ZONE

 

 

7 – CHARACTERISITICS OF MINERALIZATION

 

7.1 – PRIMARY DEPOSITS

 

Kimberlites SS1 – Strongly intemperized nucleuses of +- 200m X+- 150m dimensions, covered by in situ thick layer of sediments (+- 10m) and/or rejects

from former prospects with minerable grades. The superficial treatment test at the SS1 cover revealed surprisingly result of grade of 1.50 ct/m3, as well as a very expressive grade of piropo garnet, ilmenite, anatase, zircon, turmalinite. The white spots are associated feldspar and kaulinite.

 

Lamproites SS2 – Nucleuses morphologically covered by thick sediment layer (+- 5.0 m) and/or rejects from former prospects with minerable grades, with dimensions of +- 150m X +- 100m. They generated semi-hardened green soils with whitened semi-circular, centimetric, feldsphatic, ball clays spots, containing expressive grade of piropo-almandine garnets, zircon, ilmenite, anatase and chalcedony. The volumetric tests over the greenish masses which were rich in garnets and titanium revealed a +- 2.50 m thickness from where approximately 4,000.00 ct of diamonds were extracted, with grades varying from 0.80 to 13.00 ct/m3.

 

Gaps SS3 – Lined expression bodies inside S2 families of structures, with expressive effect in N of Sector – 1, with narrow dimensions of +- 20m X 80m, and average depth of 8.00m. It possesses xenolith in the sedimentary interlocks and the centimetrical dimension