Sao Chico Gold Project
The Sao Chico gold project of Gold Aura Do Brasil Mineracao Ltda (GOAB), a 100% owned subsidiary of Gold Anomaly Limited, is located along the NW-SE Tocantinzinho trend which is the main mineralised zone within the Tapajos Mineral Field in Brazil. The Tapajos field was the site of the biggest gold rush in Brazilian history mainly in the late 1970’s and 1980s when approximately 500,000 garimpeiros [alluvial miners] rushed to the area to exploit extensive areas of newly discovered alluvial gold. Approximately 20-30 million ounces of gold were produced [unofficial figures] from these operations before the easily won alluvial gold deposits were largely depleted. The Garimpeiros have little expertise in underground mining and environmental considerations and were thus urged by the government to consolidate their small claims and form joint ventures with established mining companies. The area has had little exploration by modern exploration methods compared to any other equivalent gold fields in the world.
The Sao Chico project site is located adjacent to the Trans Garimpeiro Highway [unsealed] and is also serviced by light aircraft from a nearby dirt airstrip. It was the site of an alluvial gold rush and some underground mining of veins within the weathered horizon as well as limited mining in the underlying unweathered sulphide zones. Sampling of the sulphide zone vein material by GOAB has returned an average of 15 g/t gold. While gold grades and production from the uppermost weathered (supergene) zones of the veins are reported to be erratic, GOAB is targeting a grade of 20g/t from these zones. While a grade of 20g/t gold is being targeted and test work to determine if this is achievable will be undertaken, it should be noted that this grade is conceptual in nature and that there has been insufficient work undertaken to date to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
GOAB’s investigations have revealed that the veins are weathered to depths of up to 10m below the alluvial cover and that the weathered veins are amenable to free digging by excavator. Metallurgical test work has indicated that recoveries in excess of 70% can be achieved by gravity concentration. The Company plans to mine the weathered vein material by open cut methods to generate a quick cash flow and to provide a better understanding of the mineralisation as part of a feasibility study for mining the underlying sulphide zone mineralisation. Work to be undertaken under the feasibility study is expected to include drilling, soil sampling, mapping, rock sampling and geophysics (Induced Polarisation).
The initial mining operation will be undertaken under an extraction permit (guia de utilização or “GUIA”) which provides for mining and processing of up to 50,000 tonnes of gold mineralised rock per year for up to two years. Over the expected strike length of the originally identified five veins (a combined length of at least 5km) it is anticipated that there is sufficient tonnage of oxide material available to sustain the operation commencing at a rate of 50 tonnes per day and increasing to 100 tonnes per day after two months. Two new veins have been discovered recently and the company considers there is excellent potential for the discovery of further gold mineralised veins.
Tailings dam capacity is available with only minimal repair works required and can be readily expanded. Repair work has been completed on the first dam in readiness for the commencement of development. There is an ample water supply available from an on-site dam and there is abundant water available from the numerous shafts developed in the area. Access is excellent as the property lies within a cleared farm area and lies along the main arterial road in the region.
Production will commence at 50 tonnes per day (“tpd”) as an open pit operation on the weathered veins at the targeted gold grade of 20g/t. Expansion to 100tpd is planned within 2 months of commencement (resulting in an expected production of some 2,000 ounces per month). Recovery will be via gravity concentration and an integrated state of the art pressure jig system was ordered from Gekko Systems of Ballarat in Australia. This plant was shipped from Melbourne on 1st June and is expected to arrive in Brazil 15th July 2010. After customs clearance, the plant will be transported to site and installed. Site preparation for the plant arrival has been commenced. After commissioning of the plant, it is expected that gold production will be commenced in the second half of august.
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