Ann: Positive Urucum Underground Pre-Feasibility Study, page-5

Significant Assumptions used in PFS
The PFS initially considered the location of all Measured, Indicated and Inferred resources above cut-off
as mineral inventory to determine the overall mine layout and development. Only Measured and
Indicated resources are included in the design and schedule and have been reported here as the
Probable Reserve. Key assumptions used in the PFS are;
• Twin decline development from a single portal (refer Figure 2);
• North and South exhaust rises;
• Two long hole open stoping mining methods proposed (uphole retreat mining in upper northern
levels and downhole benching in the remainder);
• Cut-off grade of 1.6 g/t used for estimating mining inventories;
• Mining inventory based on Measured and Indicated resources only;
• Metallurgical recovery of 90%;
• Gold price of US$1,120 per ounce;
• Brazilian Real/US$ exchange rate of 3.8:1;
• Government royalties 2%; and
• Assumes contract mining with associated equipment lease amortisation