Ann: ACQUISITION OF HIGH-GRADE ARAXA NIOBIUM PROJECT, page-178

From this technical memorandum, we understand that a preliminary desktop study has been completed and any conclusions are very heavily qualified with a raft of further detailed studies, investigations and documentation required. I wonder why the required documentation was not procured as part of the work Terracota undertook?

In Section 6 of the report we see that:

6 STUDIES AND DOCUMENTS REQUIRED TO DETAIL THE IMPACTS OF THE MINING PIT ON DAM B4 In order to detail and quantify the impacts of the implementation of the mining pit of the Araxá – Rare Earths Project, it will be necessary to develop detailed studies of the geotechnical stability of the slopes of the mining pit, considering CBMM's B4 Dam. In order to carry out the aforementioned studies, the following information and/or existing studies carried out for the structure must be requested from CBMM (owner of Dam B4 and Dam D): Reports containing all geological and geotechnical investigation campaigns carried out on the dams; Reports and drawings of the executive project used to build the dams; Reports and drawings of the As-Built project carried out after the construction of the dams;
 Regular Safety Inspection Reports (RISR) carried out in the last 2years;
 Periodic Dam Review Reports (RPSB) carried out in the last 5years, including the RPSB prepared for the decommissioning of the dam;
 Dam audit reports carried out by external consultants;
 Local seismicity study (if any);
 Reports and drawings of the decommissioning project for Dam B4.

The analysis of the documentation on the decharacterization of Dam B4 will also allow the necessary studies to be carried out regarding the management of the water flowing into the dam, especially with regard to planning the progress of mining and works to dampen floods and divert the flow. Information and/or existing studies carried out in geological research campaigns carried out in the polygon of process DNPM 831.972/1985 must also be obtained:
 Research report carried out by the DNPM-Geosol Consortium in the area of the polygon of process DNPM 831.972/1985 for the use of the deposit (it is necessary to obtain a drilling location plan, drilling description bulletins and access to the testimonies);
 Research report carried out by CBMM in the polygonal area of the DNPM 831.972/1985 process for the use of the deposit considering the existing documents (it is necessary to obtain a drilling location plan, drilling description bulletins and access to the testimonies).
Studies that have not been identified to date should also be carried out considering the mining planning of the Araxá – Rare Earths Project:
 Report with the geomechanical model of the mine including geological data, geotechnical data and structural data of the deposit region;
 Report with the hydrogeological model for lowering the mine (to characterize the hydrogeological regime of the dam foundation);
 Report(s) containing the stability and dimensioning studies of the global slopes of the mining pit.