Mara Rosa Project, Goiás State, Brazil Pre-Feasibility Study Amarillo Gold
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Mara Rosa Project, Goiás State, Brazil (Latitude 13°58.395′ S, Longitude 49°10.690′ W) Pre-Feasibility Study Prepared by Coffey Consultoria e Serviços Ltda on behalf of: Amarillo Gold Corporation Effective Date: 28 October 2011 Qualified Person: G. Keith Whitehouse - BSc (Geology and Geography), MAusIMM (CP) Qualified Person: Chris Witt - BSc, DipMet, MAusIMM (CP) Qualified Person: João Augusto Hilário - BSc (Min Eng), MAIG Qualified Person: Clive Saunders – BSc, CGeol FGS,TMIE Aust, M.Zwe.I.E Qualified Person: Frank Baker – BMet, MMet, MIMMM, MAusIMM Qualified Person: Norman Lock - BSc, PhD, CGeol FGS, PrSciNat. 220810 Av. Afonso Pena, 4001 12º andar - Bairro Serra Belo Horizonte - MG - Brasil - CEP 30.130-009 Coffey Consultoria e Serviços Ltda Author(s): G. Keith Whitehouse Geologist BSc (Geology and Geography), MAusIMM (CP) Chris Witt Associate Consultant - Metallurgy BSc, DipMet, MAusIMM (CP) João Augusto Hilário Manager Technical Services BSc (Min Eng), MAIG Clive Saunders Principal Tailings Engineer BSc, CGeol FGS,TMIE Aust, M.Zwe.I.E Frank Baker Project Manager, Amariloo BMet, MMet, MIMMM, MAusIMM Norman Lock Manager Geology BSc, PhD, CGeol FGS, PrSciNat. Date: 28 October 2011 Project Number: 220810 Version / Status: Rev02.v01 / Final Path & File Name: \\missfs01\data$\MINE\Operations\Projects & Proposals\Projects\Amarillo\03022_Mara_Rosa_PFS\Report Preparation\Supporting Reports\NI43-101\br_220810_PFS_Mara_Rosa_Amarillo.REV01.draft.docx Print Date: Tuesday, 10 January 2012 Copies: Amarillo Gold Corporation (2) Coffey Mining – Belo Horizonte (1) Document Change Control Version Description (section(s) amended) Author(s) Date Rev01.v2 Peer review CWC 25/10/2011 Rev01.v3 Peer review CWC 29/12/2011 Rev02 Amarillo comments FB 6/1/2012 Document Review and Sign Off (signed) “Norman P Lock” (signed) “Curtis W Clarke” Primary Author Supervising Principal Norman Lock Curtis Clarke Mara Rosa Project, Goiás State, Brazil – 220810 Pre-Feasibility Study – 28 October 2011 Coffey Consultoria e Serviços Ltda Date and Signature Page This report titled “Mara Rosa Project, Goiás State, Brazil, Pre-Feasibility Study” with an effective date of 28 October 2011 was prepared on behalf of Amarillo Gold Corporation by Hugo Hoogvliet, Keith Whitehouse, Chris Witt, João Augusto Hilário, Clive Saunders, Frank Baker and Norman Lock and signed: Dated at Subiaco, Australia, this 11 day of January, 2012 (signed) “Gregory Keith Whitehouse” Gregory Keith Whitehouse, BSc (Geology and Geography), MAusIMM (CP). Geologist, Australian Exploration Field Services Dated at Perth, Australia, this 11 day of January, 2012 (signed) ”Chris Witt“ Chris Witt, BSc (Chemistry), DipMet, MAusIMM (CP). Associate Consultant – Metallurgy, Coffey Mining Dated at Belo Horizonte, Brazil, this 11 day of January, 2012 (signed) “João Augusto Hilário” João Augusto Hilário, BSc (MinEng), MAIG. Manager Technical Services, Coffey Consultoria e Serviços Ltda Dated at Perth, Australia, this 11 day of January, 2012 (signed) “Clive Thomas Saunders” Clive Thomas Saunders, Dip. C.Eng. (Struct), CGeol FGS, TMIE Aust, M.Zwe.I.E. Principal Tailings Engineer, Coffey Mining Mara Rosa Project, Goiás State, Brazil – 220810 Pre-Feasibility Study – 28 October 2011 Coffey Consultoria e Serviços Ltda Dated at Belo Horizonte, Brazil, this 11 day of January, 2012 (signed) “Frank Richard Baker” Frank Richard Baker, BMet, MMet, MIOM3, MAusIMM. Project Manager, Amarillo Gold Corporation. Dated at Toronto, Canada, this 11 day of January, 2012 (signed) “Norman Philip Lock” Norman Philip Lock, BSc, PhD, CGeol FGS, PrSciNat. Manager Geology, Coffey Mining Mara Rosa Project, Goiás State, Brazil – 220810 Pre-Feasibility Study – 28 October 2011 Coffey Consultoria e Serviços Ltda Table of Contents 1 Summary ....................................................................................................................................... 1 1.1 Property Description and Ownership ................................................................................ 2 1.2 Geology and Mineralization ............................................................................................... 2 1.3 Status of Exploration ......................................................................................................... 3 1.4 Metallurgical Testwork ....................................................................................................... 3 1.5 Mineral Resource Estimates ............................................................................................. 5 1.6 Mineral Reserve Estimates ............................................................................................... 6 1.7 Mining Methods ................................................................................................................. 7 1.7.1 Geotechnical ........................................................................................................... 7 1.7.2 Mining Study............................................................................................................ 7 1.7.3 TSF.......................................................................................................................... 8 1.8 Recovery Methods .......................................................................................................... 10 1.9 Project Infrastructure ....................................................................................................... 12 1.10 Market Studies and Contracts ......................................................................................... 12 1.11 Environmental Studies, Permitting, and Social and Community Impact ......................... 12 1.11.1 Physical and Natural Environment ........................................................................ 12 1.11.2 Hydrology and Hydrogeology ................................................................................ 13 1.11.3 Social Environment ............................................................................................... 14 1.11.4 Waste and Tailings Disposal, Monitoring and Water Management....................... 14 1.11.5 Permitting .............................................................................................................. 15 1.11.6 Mine Closure ......................................................................................................... 15 1.12 Capital and Operating Costs ........................................................................................... 15 1.13 Economic Analysis .......................................................................................................... 18 1.14 Conclusions and Recommendations ............................................................................... 19 2 Introduction ................................................................................................................................ 21 2.1 Terms of Reference ......................................................................................................... 21 2.2 Qualified Persons ............................................................................................................ 21 2.3 Site Visits and Scope of Personal Inspection .................................................................. 23 2.4 Effective Dates ................................................................................................................ 23 2.5 Information Sources and References .............................................................................. 24 2.6 Units of Measure ............................................................................................................. 24 2.7 Previous Technical Reports ............................................................................................ 25 3 Reliance on Other Experts ........................................................................................................ 26 4 Property Description and Location .......................................................................................... 27 4.1 General Description ......................................................................................................... 27 4.2 Establishing Mineral Rights in Brazil ............................................................................... 29 4.3 Royalties and other agreements on the property ............................................................ 32 Mara Rosa Project, Goiás State, Brazil – 220810 Pre-Feasibility Study – 28 October 2011 Coffey Consultoria e Serviços Ltda 4.4 Environmental Liabilities .................................................................................................. 32 4.5 Permits required for Development .................................................................................. 32 4.6 Other Factors or Risks affecting Access, Title or ability to Work .................................... 32 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ....................... 33 5.1 Accessibility ..................................................................................................................... 33 5.2 Climate ............................................................................................................................ 33 5.3 Local Resources .............................................................................................................. 33 5.4 Infrastructure ..................................................................................................................