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Montes Aureos 2011 Technical Report

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Montes Aureos 2011 Technical Report Montes Áureos Gold Project, Maranhão, Brazil (Latitude 2° 25 ' S, Longitude 46° 11 ' W). Independent Technical Report on Exploration Prepared by Coffey Consultoria e Serviços Ltda on behalf of: Brazil Resources Inc Effective Date: November /2010 Qualified Person : Mario Conrado Reinhardt – BSc (Geo) MAIG Coffey Consultoria e Serviços Ltda Av. Afonso Pena 3924 conj. 207 - Bairro Cruzeiro. Belo Horizonte - MG - CEP 30.130-009 DOCUMENT INFORMATION Author(s): Mario Conrado Technical Director - Brazil BSc (Geo) MAIG Reinhardt Date: 12 November 2010 Project Number: 181010 Version / Status: Final S:\Coffey_Mining\Projetos\Brazil_Resource\181010\Relatorio\ CM-br-181010_43-101_Montes_Áureos_Final- Path & File Name: SEDAR.docx Print Date: 22 November 2010 Copies: Brazil Resources Inc (2) Coffey Mining – Belo Horizonte (1) Document Change Control Version Description (section(s) amended) Author(s) Date Document Review and Sign Off [SIGNED] [SIGNED] Primary Author Supervising Principal Mario Conrado Reinhardt Reviewed By Norman Lock Montes Áureos Gold Project, Maranhão, Brazil – CM-br-181010 Page: i Independent Technical Report on Exploration – 12 November 2010 List of Contents 1 EXECUTIVE SUMMARY ...............................................................................................................1 2 INTRODUCION ..............................................................................................................................7 2.1 Scope of Work ...................................................................................................................7 2.2 Principal Sources of Information .......................................................................................7 2.3 Qualifications and Experience ...........................................................................................8 2.4 Units of Measurements and Currency ...............................................................................8 3 RELIANCE ON OTHER EXPERTS ...............................................................................................9 4 PROPERTY DESCRIPTION AND LOCATION .......................................................................... 10 4.1 Background Information on Brazil .................................................................................. 10 4.2 Mineral Tenure ............................................................................................................... 11 4.2.1 Prospecting Licenses ............................................................................................ 11 4.2.2 Exploration Licenses ............................................................................................. 12 4.2.3 Mining Licenses ..................................................................................................... 12 4.3 Project Location .............................................................................................................. 13 4.4 Tenement Status ............................................................................................................ 14 4.5 Royalties and Landowner Agreements .......................................................................... 18 4.6 Brazil Environmental Legislation .................................................................................... 19 4.7 Environmental Permits ................................................................................................... 20 4.8 Environmental Liabilities ................................................................................................. 20 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ....................................................................................................................... 21 5.1 Project Access ................................................................................................................ 21 5.2 Climate ........................................................................................................................... 23 5.3 Local Resources and Infrastructure ............................................................................... 23 5.4 Physiography .................................................................................................................. 23 6 HISTORY..................................................................................................................................... 24 7 GEOLOGICAL SETTING............................................................................................................ 27 7.1 Regional Geology ........................................................................................................... 27 7.2 Tentugal Shear Zone ...................................................................................................... 29 7.3 Weathering Profile .......................................................................................................... 30 7.4 Project Geology .............................................................................................................. 30 8 DEPOSIT TYPES ........................................................................................................................ 32 9 MINERALIZATION ...................................................................................................................... 33 10 EXPLORATION .......................................................................................................................... 34 11 DRILLING ................................................................................................................................... 36 Montes Áureos Gold Project, Maranhão, Brazil – CM-br-181010 Page: ii Independent Technical Report on Exploration – 12 November 2010 12 SAMPLING METHOD AND APPROACH .................................................................................. 37 13 SAMPLE PREPARATION, ANALYSES AND SECURITY ........................................................ 38 14 DATA VERIFICATION ................................................................................................................ 39 15 ADJACENT PROPERTIES......................................................................................................... 40 16 MINERAL PROCESSING AND METALLURGICAL TESTING ................................................. 41 17 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ............................................ 42 18 OTHER RELEVANT DATA AND INFORMATION ..................................................................... 43 19 INTERPRETATION AND CONCLUSIONS ................................................................................ 44 20 RECOMMENDATIONS ............................................................................................................... 45 21 REFERENCES ............................................................................................................................ 47 22 DATE AND SIGNATURE PAGE ................................................................................................ 49 23 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES ...................................... 50 List of Tables Table 4.4_1 – Summary of Brazil Resources’ Concession 14 Table 4.4_2 –Brazil Resources’ Exploration Permit Claim Vertices 15 Table 4.6_1 – Main Environmental Licensing Stages of Brazilian Mining Projects 19 Table 6_1 – Exploration History 24 Table 20_1 – Exploration Potential and Recommended Work 45 List of Figures Figure 4.3_1 – Project Location 13 Figure 4.4_1 – Basic Data of Process 806.143/2007 15 Figure 4.4_2 – Concession Location 17 Figure 5.1_1 – Local Access to the Montes Áureos Property 21 Figure.6_1 – Abandoned Scrap of Gold Project 24 Figure 6_2 – Garimpeiro Facilities Working With Shaft and Underground 25 Figure 6_3 – Abandoned Open Pit 25 Figure 7.1_1 – Regional Geology Map 27 Figure 7.2_2 – Tentugal Shear Zone and Main Geology 29 Figure 9_1 – Mineralization 33 Figure 10_1 – Potential Trends and Targets – Montes Áureos 34 Montes Áureos Gold Project, Maranhão, Brazil – CM-br-181010 Page: iii Independent Technical Report on Exploration – 12 November 2010 Figure 10_2 – Project Geology Map 35 Figure 11_1 – Auger Drilling 36 Figure 12_1 – Auger Drill sampling 37 List of Appendices Appendix A – Certificate of Mario Conrado Reinhardt Montes Áureos Gold Project, Maranhão, Brazil – CM-br-181010 Page: iv Independent Technical Report on Exploration – 12 November 2010 1 EXECUTIVE SUMMARY Introduction Coffey Mining Pty Ltd (Coffey Mining) under its Brazilian office in Belo Horizonte has been commissioned by Brazil Resources Inc (Brazil Resources) to prepare an independent Technical Report about the early exploration stage Montes Áureos Gold Project, in Maranhão State, Brazil. The Company’s mineral property is considered to represent an Exploration Project which is inherently speculative in nature. However, Coffey Mining considers that the property has been acquired on the basis of sound technical merit. The property is also generally considered to be sufficiently prospective, subject to varying degrees of exploration risk, to warrant further exploration and assessment of its economic potential, consistent with the proposed programs. Location The Montes Áureos Gold Project is located in the municipality of Centro de Guilherme city, region of Gurupi, approximately 200km directly west of São Luís city, the capital of the Maranhão state (Figure
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