ADVANCING BRAZIL’S NEW IRON ORE FRONTIER
IRON FORMATION
AND MAGNETITE PROJECTS 85 KM AWAY FROM DEEP-SEA PORT
November 2013
Exclusive ownership of over 70,000 hectares of claims
60 km away from coast
Very good infrastructure:
Close to abundant energy (Xingó Hydroelectric, 3.1MKW)
Crossed by railroad to port, operational in 2014 (1.6m gauge)
Abundant water (pumped from São Francisco River’s 3,000m3/s
flow)
All roads are public/free, paved and in well kept conditions
Experienced fulltime management team situated in the region
State government support for infrastructure, port access, tax-free
export production zone around port, and tax breaks
SUMMARY
LOCA
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XINGÓ HYDROELECTRIC – S. FRANCISCO
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TRANSNORDESTINA RAILROAD
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BR-101 HIGHWAY
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SERIGPE & MACEIÓ PORT
JOINT VENTURE
FOMENTO RESOURCES
Mineral processing.
Mining exploration. Mining operations.
Fully integrated logistics.
FOMENTO RESOURCES
Total sales tonnage.
Atlantica Geo. Mineração [Phase 1:
73% Atlantica + 27% Fomento Phase 2:
51% Fomento + 49% Atlantica]
Columbia Exploração Mineral [100% Atlantica Mining]
Tenements + Personnel
Capital+ Know-How
JOINT VENTURE - STRUCTURE
MINERAL ASSETS
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ALAGOAS’ PROJECTS
Magnetite-rich Iron Formations (BIF & iron stone)
Ground mag over 500km by Scan Consultoria
Data interpretation & modelling by Reconsult & Scan
RC and DC drilling, establishing geophysical model
Campo Grande: Average 35-40% Fe grade, concentrated Fe +68%Excellent regional infrastructure
Campo Alegre: DSO potential, average Fe 45%
Aerial geophysics - 500m grid from 120m high (Campo Alegre proj.)
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GROUND GEOPHYSICS CAMPO GRANDE
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GROUND GEOPHYSICS CAMPO ALEGRE
H-H and G-G Cross-Sections
Alagoas Sul Project Pedra Sul Target
• 450m drilling campaign in 4 holes successfully established the geophysical model
• One hole was inconclusive because it was positioned off the mineralized body
• Results of the drilling campaign indicate the need for further work on the target,
preferably at a larger scale and with the use of diamond core drilling to also
ascertain the target’s iron ore grades
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PRELIMINARY RC DRILLING
• 5,000m drilling campaign throughout projects Campo Alegre and Campo Grande
• First holes in Campo Grande project reconfirm geophysics
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ONGOING DC DRILLING
Geology
Mineralization interspersed with Metasediment and Metavolcanic rocks
Very low contaminants
Magnetite average ~0.8-1.0 SI (magnetic susceptibility)
Aaverage grades 35-45% Fe
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GEOLOGICAL CHARACTERISTICS
Magnetite BIF Specularite & Quartz
Hematite BIF Magnetitite – mag susceptibility 23
SAMPLE PICTURES
Description Wt. Rec. % Fe %
Magnetics 42.0 67.3
Non-Magnetics 58.0 3.6
Head 100.0 30.4
Sample from 140m:
Description Wt. Rec. % Fe %
Magnetics 30.0 68.5
Non-Magnetics 70.0 3.00
Head 100.0 22.7
Sample from 85m:
Description Wt. Rec. % Fe %
Magnetics 52.0 68.5
Non-Magnetics 48.0 7.70
Head 100.0 39.31
Sample 1: Ita-4 Alto das Pedras target
Description Wt. Rec. % Fe %
Magnetics 48.0 68.9
Non-Magnetics 52.0 6.6
Head 100.0 36.5
Sample 2: Ita-4 Pedras Sul target
Description Wt. Rec. % Fe %
Magnetics 12.0 67.1
Non-Magnetics 88.0 16.8
Head 100.0 22.8
Sample 3: Campo Grande target
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Test conducted at -100 mesh size and 1000 gauss on surface samples:
• Davis tube test at -200 mesh size and 1000 gauss on core of drill hole RCH-0002:
CONCENTRATION TESTS
Weathered Outcrop
BIF Outcrop Pit
Drilling 25
PROJECT PICTURES
SAO FRANCISCO PROJECT - highlights
24.317Ha 100% owned
Banded Iron Formation and magnetite-rich mafic-ultramafic rocks w/ polymetallic mineralization (Cr, Co, Ni, V, PGE, and Au)
FTG+Mag flown by Bell Geospace @100m grid
Data interpretation & modelling by Core Geophysics – inversion projecting between 150Mt – 450Mt
31 identified targets w/ average 190m width and 80m depth, 6 targets with strike lengths longer than 500m
BIF concentrate Fe 60+% - potential to DSO type mineralization
Very Strong Ni, Co, Cr and Pt+Pd (Au) soil geochem anomalies
2013/14 pilot iron ore production (100kt/yr)
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GEOLOGICAL CHARACTERISTICS
BANDED IRON FORMATION
Occurrence of compact hematite/magnetite lenses (DSO)
Mineral association: Hematite, magnetite and quartz; No Goethite/Low P2O5 and Alumina
MAFIC-ULTRAMAFIC COMPLEX
Massive magnetite (>57% Fe) and magnetite metabasite/chloritite (Average 20-25% Fe)
Ni, Co, V, Cr, EGP (Au) mineralization; No Goethite/Low P2O5 and Alumina
Fe
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Cr
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Cr RESULTS IN SOIL GEOCHEMISTRY
Cr RESULTS IN SOIL GEOCHEMISTRY
PICTURES Ironstone (2,043 ppm Ni, 10 ppb Pd & 9ppb Au)
Serpentinite (5,657.6 ppm Ni & 34 ppb Pt+Pd) Magnetite-bearing tremolitite (5,343.3 ppm Ni)
Chromitite (35.30% Cr2O3, 2,593 ppm Ni, 0.18% V2O5)
