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AXXX BRASIL MINERAO S.A. MORRINHO MINERAO LTDA SALINAS GOLD MINE MATO GROSSO - BRAZIL PRESENTATION FOR INVESTORS SALINAS GOLD MINE 108 km SALINAS GOLD MINE Mato Grosso Population: 2,803,274 (2005) Area: 903,386 km 2

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AXXX BRASIL MINERAÇÃO S.A.

PRESENTATION FOR INVESTORS

MORRINHO MINERAÇÃO LTDA

SALINAS GOLD MINE

MATO GROSSO - BRAZIL

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SALINAS GOLD MINE

108 km

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Mato Grosso

– Population: 2,803,274 (2005) – Area: 903,386 km2 – GDP: US$ 15 billion (2006) – State with the highest economic growth in the last 18 years (GDP>315%) – Cuiabá: modern infrastructure:

  • 550,000 inhabitants - city
  • 900,000 inhabitants – metro

– Home of important mining companies, such as:

  • Aura Minerals
  • Votorantim
  • Kinross
  • Lago Dourado

SALINAS GOLD MINE

Cuiabá, Mato Grosso, Brazil

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SALINAS GOLD MINE

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SALINAS GOLD MINE

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SALINAS GOLD MINE

MAG Geophysical Survey

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SALINAS GOLD MINE

  • Regional Geology

Regional geological unit: Cuiabá Group: marine to epicontinental environment . Main lithologies: conglomerate, quartzite, slate and carbonatic rocks with subordinated iron-rich meta-sediments. Deformation and metamorphic dewatering responsible for formation of quartz veining systems along the main NE structural trends of the Cuiabá Group. Regional NE oriented thrust faults are the most conspicuous structures and define extensive shear zones where hydrothermal alteration and quartz veining host the main gold mineralizations.

  • Local Geology

Detritic metasediments of the Cuiabá Group. Rocks are: metasandstones, metargilites, metasiltstones, metaconglomerates, metadiamictites, carbonaceous and carbonatic meta sediments with intercalations of felsic tufaceous volcanics. Four new thrust faults with shear zones along NE direction were recognized in the area with the development of intensive hydrothermal alteration associated with quartz veining.

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SALINAS GOLD MINE

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A A’

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SALINAS GOLD MINE

Mineralization

  • Gold related to open-filling spaces mineralization type associated with

hydrothermal fluids generated by the low-grade metamorphic event along NE direction thrust faults cutting late proterozoic sedimentary rocks .

  • Typical Salinas mineralization: 1)Veins in fractures; 2) Shear veins and

3) Disseminated gold along hydrothermal alteration zone.

  • Vein Types

Conformable: Flat to upright, N-NE striking and up to 300 m long and 0.10 to 1.0 m wide. Gold grades lower than 2.0 g Au/t. Unconformable: Usually upright, N-W striking, less than 100 m long and

  • max. 1 m wide. Au grades: 1- 5 g/t.
  • Mineralization: Pervasive hydrothermal alteration zones (sericitization,

carbonatization, silicification and sulphidation - py ) associated with concordant and discordant quartz veins define an important mineralized system with grades around 1.0g Au/t.

  • -- Potential to become a large low grade bulk gold deposit.
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SALINAS GOLD MINE

Diamond Drilling Program – 7,000 meters

Main objectives :

►Confirm down dip continuity of the gold mineralization (alteration zone

with quartz veins and pyrite and carbonate dissemination) detected by trenching along and among the four main known trends (West, Central, Intermediary and East shear zones). Five new targets were selected : Cumbaru, Bocaiuva, Angico/Sucupira, Imbauba and Urtiga.

►Test the continuity of the mineralization down dip below the old pits

(Confusão, Rica, Max, Melechete, Represa and Jeca), previously excavated by garimpeiros

►Test reinterpreted geophysical anomalies ( IP / Mag )

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SALINAS GOLD MINE

Cumbaru Target - Drill rig on site

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SALINAS GOLD MINE

Carbonaceous rhythmic phyllites with conformable quartz vein (costelão)

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SALINAS GOLD MINE

Altered Sericitic phyllite with pyritic and carbonatic dissemination

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SALINAS GOLD MINE

Drill core logging

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SALINAS GOLD MINE

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SALINAS GOLD MINE

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SALINAS GOLD MINE - Cumbaru Target

Section AB - SD-05/SD-14 Drill Holes

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Geology

  • Geological mapping has defined four new shear zones with evidences
  • f gold mineralization (quartz veining and hydrothermal alteration).
  • Detailed work carried out along and among the known shear zones

(western, central and intermediary ) generated seven selected targets (Cumbaru, Bocaiuva, Imbauva, Angico-Sucupira, Confusão, Represa and Urtiga). Excellent potential for bulk mineable resources.

  • Two open pits (1 and 2) excavated along NE direction at Cumbaru Target

presented consistent mineralized systems: 500m and 300m respectively by 30-40 m wide have shown pervasive hydrothermal alteration and increased amount of quartz veins.

  • Cumbaru & Sucupira Targets: Only areas with more detailed exploration
  • works. Diamond drilling data suggests the mineralized system

continues down deep. Projection of the systems on surface defines mineralized zones with at least 100m wide.

SALINAS GOLD MINE

Highlights

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Mine

– Cumbaru Pits 1 & 2 deepened up to 25 meters. Gold headgrade higher than 2 g/t was found locally – Host rock (sericitic phyllites) presented an average grade of 0.3 g/t ; – Quartz veins presented a grade higher than 2.0 g Au /t; Conclusions: – Urgent need for mineral resources determination; – Bulk sampling recommended by SRK. Large samples needed. Large diameter drilling envisaged.

SALINAS GOLD MINE

Highlights

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Panoramic view of the Cumbaru Target looking SW, showing the orthogonal and diagonal trenching. Estimated distance - 600 m.

SALINAS GOLD MINE

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SALINAS GOLD MINE

Transversal section to the main NE trend showing high concentration of disrupted conformable quart veins (costelões) and transversal NW ( filões) hosted by hydrothermally altered sericitic and carbonaceous phyllites and metasandstones.

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Cumbaru Target - Looking NE

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SALINAS GOLD MINE

Longitudinal section along NE trend showing high concentration of disrupted conformable quartz veins (costelões) and unconformable quartz veins (filões) hosted by hidrothermally altered sericitic and carbonatic phyllites.

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SALINAS GOLD MINE

Detailed view along the NE trend showing high concentration of disrupted uncomformable quartz veins (filões) hosted by hydrothermally altered sericitic and carbonatic phyllites.

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SALINAS GOLD MINE

SUCUPIRA TARGET (looking NE )

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Sucupira Target - Looking SW

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Sucupira Target Looking NE

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SALINAS GOLD MINE

Coarse Gold in pyrite boxwork - Quartz Vein - Cumbaru Target

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Coarse gold in quartz vein. Sucupira Target

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Coarse gold in quartz vein. Sucupira Target

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SALINAS GOLD MINE

►15,000 meters of trenching (100 to 200 m apart) opened in the area, so as to test three main West, Central and Eastern shear zones. Gold grade by trenching lower than plant gold grade. ►Systematic trenching defined five new target areas: Cumbaru and Urtiga (Central Trend), Bocaiuva (Intermediary Trend) , Imbauva and Sucupira / Angico ( Western Trend ). ► Testing of the primary material : four diagonal trenches at 25 m apart at central part of the Cumbaru Target. Tonnage: 3, 174 dry tons. ► Head grade obtained by back-calculation. Grade higher than two times the gold grade

  • btained through channel sampling – 1.022 gAu/t

► Diamond drilling (12,000 meters) used to test the down dip and along strike mineralized

  • systems. Inconsistent and non representative analytical results.

Proving Mineral Resources

► Bulk sampling recommended by SRK defined as the best approach for the Salinas Mineral Resources Evaluation.

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SALINAS GOLD MINE

Bulk Sampling Test.

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Loading trench bulk material Plant tailing sampling

SALINAS GOLD MINE

Trench Resources evaluation - 4 trenches at 25 meters apart

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Resource / Reserve Evaluation Strategy

  • SRK proposal was to evaluate minimum 600,000 Oz as resources at Salinas;
  • Assumptions: 2,000 m length mineralized trend along strike, 80 m vertical

depth, 100m wide, grade 1.0 g/t, dipping 30°, s.g 2.08 t/m3.

  • Trenching: 50 m and/or 25 m apart: 8,000m.
  • Bulk sampling every 10 m: 800 samples of 80 tons;
  • Total tonnage to be processed: 64,000 tons
  • Channel sampling: 1,600 samples at 5 m apart;
  • Head grade to be obtained through backcalculation using gravimetric

concentrates and tailings assaying results;

  • Diamond drilling (50X50m) = 14,000 m
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Mineral Resources Evaluation Strategy Original SRK Exploration Program

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SALINAS GOLD MINE

Process Plants

Gravity Process Plants: Gravity plant with 1,200 TPD current capacity: Basic closed circuit: Feed boxes, hammer milling, hydrocyclons, ball milling, primary & secondary centrifugal concentrators. Poor maintenance conditions. Complete refurbishment is needed. Final product is gravity concentrates. Future Fines Gold Plant: Cyanidation Gold Plant construction (2,500 TPD) seeking financing. Project and construction time : 6 months. Cost : US$ 8 million (including mine equipment). Future Fines Gold Plant metallurgical route: Gravity circuit plus Flotation & Agitated leaching (CIP-Carbon in Pulp). Cyanidation Plant will also process old Gravity Plant Tailings . Gold electrolytical recovery . Expected overall recovery: 90-92%

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SALINAS GOLD MINE

Cyanidation Plant - Environmental Permit

Environmental Control Plan & Report - Environmental License ECP and Environmental Application submitted to SEMA (State of Mato Grosso Environmental Authority) on July 21, 2008; Full Cyanidation Environmental license obtained from SEMA on December 2008. Environmental License has been successfully renewed every three years.

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SALINAS GOLD MINE

GRAVITY PLANT – Ball Mills, Cyclones and Spirals

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SALINAS GOLD MINE

Gravity Plant – General View

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Flotation Plant – General View

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SALINAS GOLD MINE

Flotation Plant – General View

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Cyanidation Plant – General View

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Metallurgical Research

 Metallurgical batch testing carried out at CETEM, Mineral Technology Center based in Rio de Janeiro. Gravity process followed by conventional gold fines flotation methods have shown up to 79% overall gold recovery;  In house batch cyanidation testing carried out for the gravity concentrates and gravity plant tailings with 90-92% recovery. Agitated cyanidation (CIP) being considered as a valuable technical alternative for Salinas ores.  Pilot scale plant testing carried out at Salinas has confirmed batch results.

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SALINAS GOLD MINE

Flotation & Cyanide Leaching Plant Investment

CAPEX COST – CYANIDATION PLANT (2,500 TPD)

Cyanidation (CIP) Plant Project & Construction : US$ 2.5 million Improvements at current Gravity Plant (Crushers) : US$ 1.5 million Mine equipment : US$ 1.0 million TOTAL : US$ 5.0 million

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SALINAS GOLD MINE

► Payment to land owner * : US$ 2,000,000 ► New Cyanidation Plant & Mine : US$ 5,000,000- ► Working Capital : US$ 1,000,000 ► Payment to current owner* : US$ 5,000,000 Capital required from new investors

* Items marked with * can be negotiated and payment schedule can

be parceled

► Payment to previous owner * : US$ 2,000,000

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SALINAS GOLD MINE

Production Plans

 To improve production from 10,000 ounces/year to 30,000 ounces /year in six months, after the new cyanidation plant (flotation & CIP) is built;  To improve production to 50,000 ounces per year in 2-3 years by increasing tonnage from the same or new targets.  To improve production to 75,000 ounces per year in 4-5 years through acquisition & development of new projects and properties in the vicinities and development of the “mobile plants” concept for old gravity tailings along the Cuiabá Gold Belt (200 million tons of tailings at approx. 0.5 g/t. )

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SALINAS GOLD MINE - MANAGEMENT

Project director – R. A. Abergel

  • Mr. Abergel is ex CEO of LGBI and was running his own gold exploration projects in the

Amazon region by applying innovative methods and self correcting procedures into locating gold ores, optimizing project cost and maximizing production. Mr. Abergel has vast experience in the areas of geological research, plant deployments, logistics, security, administrative process of operating a gold mine in remote areas and project management .

  • Victor M. Retamal- vice project director

Mining Engineer. Forty years of experience in mine/plant operations, exploration, project development and mine construction. Worked in senior positions for CODELCO, Rosario Resources, CAEMI Group, Caraiba Metais, BP Minerals, Yamana, Votorantim, VALE and as General Manager (Brazil) for Canico Resources (Onça Puma Nickel Project). Fluent in English, Spanish and Portuguese.

  • Senior Geological Advisor- Helio Monteiro
  • Geologist. Forty three years of experience in mineral exploration, base and precious
  • metals. Had several senior positions working for CODIM (Union Carbide), DOCEGEO

(CVRD), BP Minerals and as a Consultant for NORANDA, CVRD, Votorantim, Ambrex Mining Corp., MINCOR and PASMINCO. Fluent in English, Spanish and Portuguese. Process Manager, Claudio Chaves Metallurgist – Twenty-two years of experience in metallurgical processing, plant

  • perations and plant construction. Good experience in mineral processing and

cyanidation plants (CIP & CIL and Heap Leaching) in gold and copper plants for companies as Anglo American Corp., Yamana Gold, Kinross, Santa Elina Gold and Caraiba.