Technical Report

TECHNICAL REPORT ON THE AMAZON BASIN GOLD PROPERTY AMAZONAS, MATO GROSSO AND RONDÔNIA STATES, BRAZIL Apui Airport Coordinates Latitude: 07° 10' 27.3" South Longitude: 59° 50' 20.4" West For: Armadillo Resources Ltd 411 – 470 Granville Street Vancouver, BC Canada V6C 1V5 Prepared By: David F. Reid, B.Sc., M.Sc., MBA, P.Geo. W. R. Gilmour, B.Sc., P.Geo Discovery Consultants 201 – 2928 29th Street Vernon, BC, V1T 5A6 P.O. Box 933 Vernon, BC, V1T 6M8 Date: October 19, 2010 TABLE OF CONTENTS 1. SUMMARY .................................................................................................................1 2. INTRODUCTION ........................................................................................................3 3. RELIANCE ON OTHER EXPERTS..................................................................................6 4. PROPERTY LOCATION AND DESCRIPTION 4.1 Location ................................................................................................................7 4.2 Property Description ...............................................................................................7 4.3 Brazilian Mining Code & Permitting.......................................................................... 15 4.3.1 Exploration and Mining Concessions...................................................................... 15 4.3.2 Maintenance of Mineral Tenure Rights................................................................... 16 4.3.3 Environmental Regulations .................................................................................. 16 4.3.4 Environmental Liabilities relating to the Amazonia Property...................................... 16 4.4 Surface Rights ..................................................................................................... 17 4.5 Royalties ............................................................................................................ 17 5. ACCESS, CLIMATE, PHYSIOGRAPHY, LOCAL RESOURCES AND INFRASTRUCTURE 5.1 Access ................................................................................................................ 17 5.2 Climate ............................................................................................................... 19 5.3 Physiography ....................................................................................................... 19 5.4 Local Resources and Infrastructure ......................................................................... 20 6. HISTORY................................................................................................................. 20 7. GEOLOGICAL SETTING 7.1 Regional Geology.................................................................................................. 21 7.2 Property Geology.................................................................................................. 23 7.2.1 Manicore Project ................................................................................................ 23 7.2.2 Aripuana Project ............................................................................................... 25 i 7.2.3 Curauai Project - Block 1 .................................................................................... 27 7.2.4 Curauai Project - Block 2 .................................................................................... 30 7.2.5 Madeirinha Project ............................................................................................. 32 7.2.6 Juruena Project ................................................................................................. 34 7.2.7 Matupa Project - Block 1 ..................................................................................... 36 7.2.8 Matupa Project - Block 2 ..................................................................................... 36 7.2.9 Matupa Project - Block 3 ..................................................................................... 36 7.2.10 Matupa Project - Block 4 ................................................................................... 40 7.2.11 Jatoba Project ................................................................................................. 42 7.2.12 Cacoal Project ................................................................................................. 44 7.2.13 Theobroma Project - Block 1.............................................................................. 46 7.2.14 Theobroma Project - Block 2.............................................................................. 46 7.3 Structure............................................................................................................. 49 8. DEPOSIT TYPES....................................................................................................... 49 9. MINERALIZATION ................................................................................................... 50 10. EXPLORATION....................................................................................................... 51 10.1 Soil and Saprolite Sampling.................................................................................. 51 10.2 Stream Sediment Geochemical Survey................................................................... 51 11. DRILLING.............................................................................................................. 52 12. SAMPLING METHOD AND APPROACH 12.1 Soil and Saprolite Sampling.................................................................................. 52 13. SAMPLE PREPARATION, ANALYSES, AND SECURITY 13.1 Soil and Saprolite Sampling.................................................................................. 52 14. DATA VERIFICATION............................................................................................. 53 15. ADJACENT PROPERTIES ........................................................................................ 53 16. MINERAL PROCESSING AND METALLURGICAL TESTING......................................... 55 ii 17. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ..................................... 55 18. INTERPRETATION AND CONCLUSIONS 18.1 Geology and Mineralization................................................................................... 56 18.2 Exploration Targets ............................................................................................. 56 18.2.1 Manicore Project .............................................................................................. 56 18.2.2 Aripuana Project ............................................................................................. 56 18.2.3 Curauai Project - Block 1................................................................................... 57 18.2.4 Curauai Project - Block 2................................................................................... 57 18.2.5 Madeirinha Project ........................................................................................... 57 18.2.6 Juruena Project................................................................................................ 60 18.2.7 Matupa Project - Blocks 1 to 4 ........................................................................... 60 18.2.8 Jatoba Project ................................................................................................. 60 18.2.9 Cacoal Project ................................................................................................. 60 18.2.10 Theobroma Project ......................................................................................... 60 19. Recommendations................................................................................................. 63 19.1 Recommended Phase One Exploration Program...................................................... 63 19.2 Recommended Phase Two Exploration Program ..................................................... 65 20. REFERENCES ......................................................................................................... 68 21. CERTIFICATE OF QUALIFICATIONS ....................................................................... 70 List of Tables, Figures and Photos Tables Table 1: Mineral Tenure - Amazônia Capital e Participações Ltda., Brazil ..................................9 Table 2: Proposed Budget Phase One Exploration Program................................................... 64 Table 3: Proposed Budget Phase Two Exploration Program................................................... 66 iii Figures Figure 1: Project Location Map, Amazonas, Mato Grosso and Rondônia States, Brazil.................5 Figure 2: Property General Geology .................................................................................. 22 Figure 3: Geology and Tenure - Manicore Project, 1:600,000 ............................................... 24 Figure 4: Geology and Tenure - Aripuana Project, 1:600,000 ............................................... 26 Figure 5: Geology and Tenure - Curauai Project - Block 1, 1:500,000 .................................... 29 Figure 6: Geology and Tenure - Curauai Project - Block 2, 1:500,000 .................................... 31 Figure 7: Geology and Tenure - Madeirinha Project, 1:300,000............................................. 33 Figure 8: Geology and Tenure - Juruena Project, 1:500,000................................................. 35 Figure 9: Geology and Tenure - Matupa Project – Block 1, 1:300,000.................................... 37 Figure 10:

Load more