1. 1
Evaluation of
Mineral Reserves

2. 2
Stages of the Evaluation of Mineral Reserves
Evaluation of Mineral Reserves
Resources Reserves
Inferred
Indicated Probable
Measured Proven
Source: CIM Definition Standards for Mineral Resources and Mineral Reserves (11/22/2005)
Geological
Knowledge and
Confidence
Modifying Factors
(Considers legal, economic, social, and
governamental factors, among others

3. 3
Classification of Mineral Resources
 Mineral Resources: Demonstrated by the quantity and quality of a “mineral asset” located in a
determined area. Resources can be classified as Inferred , Indicated or Measured, based on
growing geological knowledge of the area in question (degree of exploration and recognition of
the deposit):
• Inferred: portion of the resources whose geological continuity and quality are assumed.
Sampling stations present ample spacing
• Indicated: portion of the resources whose geological continuity can be proven and
quality is assumed
• Measured: portion of the resources whose geological continuity and quality can be
proved
Evaluation of Mineral Reserves

4. 4
Classification of Mineral Reserves
 Mineral Reserves: That portion of the resources whose production is considered feasible from
both the technical and economic point of view. This analysis does not consider several aspects
including Legal (social, governmental, environmental), Production-related (extraction method,
processing, metallurgy, pit optimization, transportation) and Economic (investments, costs and
cash generation). Reserves can be classified as Probable or Proven:
• Proven: portion of measured resources that is economically feasible
• Probable: portion of indicated and/or measured resources that is economically feasible
Evaluation of Mineral Reserves

5. 5
Estimate of Inferred Mineral Resources
Evaluation of Mineral Reserves
 Objectives: To estimate the volume of Inferred Mineral Resources in accordance with
Canadian NI 43-101 standards
 Activities:
• Semi-detailed geological mapping
• Ground geophysics – electrical drilling and borehole logging
• Rotary drilling campaign
• Detailed mapping
• Chemical / metallurgical tests

6. 6
Estimate of Inferred Mineral Resources
Evaluation of Mineral Reserves
Drilling Geophysics Laboratories Engineering Market
Fundação
Gorceix

7. 7
Exploration Results
 Mine located in the Urucum Massif, in the
southeast portion of the Morraria Santa
Cruz
Evaluation of Mineral Reserves
 Geodynamic Configuration of the Basin Edge

8. 8
Exploration Results
Evaluation of Mineral Reserves
 Enriched surface zone: from 100 to 150 meters
 High average iron content: between 53% andd 58%
 Inferior zone: from 100 to 300 meters
 Average iron content: between 45% and 48%