The Prospex project and mining areas are situated 30km south of the city of Caetité, Bahia, in a highly mineralized region known as the “Licínio de Ameida – Caetité Complex”. Prospex areas show layers of ore with manganese grades reaching up to 50% and low phosphorous grades. This ore is a result of supergenic enrichment of the Late Archean metavolcano-sedimentary rocks.

In 2010, Prospex resumed its exploration and mining plans. The company started a preliminary geological survey by opening wells and trenches in a 35ha perimeter at Açoita Cavalo area (see topographic plant in the next page). Initially, 90 pits 3m deep x 1m x 1m were dug (see pic of a pit in following page). At the topographic plant the dots marked green are pits with less than 120 kg that were considered as “no Mn”. The dots in purple showed 120kg – 800kg of Mn 40% min. The pits in black showed more than 800kg or Mn 40% min. Additionally, Prospex has opened within the surveyed area 2,500 meters of trenches 1.5 meter wide and up to 7 meters deep (see picture of a trench).

Afterwards, additional 16 pits and 500 meters of trenches were opened, totalling 105 pits and 3 km of trenches.

 

Topographical Map:

 

 

Superficial layers:

 

The pits and trenches at Açoita Cavalo show mineralized layers of up to one meter wide with high grade manganese ore occurring from 1 to 3 meters deep. The surveyed perimeter of 35ha (out of 1,740ha total) shows manganese ore reserves in superficial layers as follows:

  • Measured reserves: 229.352t of 43% Mn ore.
  • Inferred reserves: 148.563t of 43% Mn ore.

 

Main body:

 

Trenches up to 7 meters deep found additional ore and reached the main ore body. The main ore body, which contains MnO2 and others minerals (Ta2O5, Nb2O5, others), has not been surveyed yet. It is 1km long, 50 meter wide, and has metamorphic orientation N45W deepening 50 degrees SW. Brazilian and international geologists, including a geologist certified by the Toronto Stock Exchange, based on visits to the site and knowledge of the geological structure of the region, estimate the main body to contain in excess of 10 million tons of manganese ore.

Based on the limited exploration work that has been accomplished and the current legal status of the Açoita Cavalo mine, Prospex is ready to resume regular production of approx. 50,000 tpy of manganese ore with Mn 43% typical.

 

Geological Pit:

 

 

Geological Trench: