2.3 Chapter 3 - Mineral - Resources

Chapterr 3 – MINERA
AL RESOUR
RCES
3 MINE
ERAL
L RES
SOUR
RCES
S
3.1 INTRO
ODUCT
TION
BAMIN commenced d its explorattion of the P PdF Deposit in 2005. Since then, BAAMIN has undertaken
extensivve studies to
o assess the geology of the deposit and estimatte a resourcee. There ha ave been
61,555 mmetres of drilling and the last drilling ccampaign co
ompleted in December
D 20015.
The decclared Minerral Resourcee is 931 Mt grading 39.9% Fe, 39.7% SiO2, 1. 1% Al2O3, 0.05% 0 P,
0.30% MMn and 0.9% % LOI. This has
h been rep ported accorrding to the terms and ddefinitions de
efined by
the 2012
2 edition of the
t Australassian Code fo
or reporting of n results, Mi neral Resources and
o exploration
Ore Resserves (the JORC
J Code)). The Comppetent Person is from SR RK Consultinng (UK) Limitted (SRK
UK).
BAMIN’ss technical team has managed th he exploratioon campaigns, assessm ment of thee deposit
geology, assaying, quality stan
ndards, data a verification
n and mode
elling. Variouus consultan
nts have
provided
d technical guidance and input, includ
ding:
 ALS Geoch
hemistry
 Drillgeo
 Geosol
 SGS Geossol Laboratórrios
 SRK UK
 VogBR
3.2 MINERAL RIG

GHTS
The PdF deposit iss contained within five Mineral Rig ghts (alvarás
s): 870.830/22004, 870.2 283/2005,
811.4666/1973, 292/11958 and 87 71.697/2009 . The locatio
ons of the PdF
P Mineral Rights are shown
s in
Figure 3
3.1. Mineral Right 5247/1958 also beelongs to BA AMIN, though does not fform part of the PdF
Project. Mineral Righ
ht 870.166/1984 does no
ot belong to BAMIN;
B no Mineral
M Resouurce falls witthin it.
The Dire
ect Affected Area (ADA)) is shown b y an orange e polygon in Figure 3.1. This demarc
cates the
area where the pit, piles
p and all supporting
s sttructures willl be develope
ed.
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Figure 3
3.1 – Locatio
on of the Pe
edra de Ferrro Deposit
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3.3 GEOL
LOGICA
AL FRAM
MEWOR
RK
Initially d
defined by Almeida
A (1977
7), the Sao F
Francisco Crraton (CSF) consists
c of a sub crustal segment
of Paleo oproterozoicc age, wherre the subsstrate, which h is older than
t 1.8 Gaa, was preserved in
deforma ational eventts that occurred during collision andd metamorp phism that ggave rise to Western
Gondwa ana during thhe Neoproterrozoic. The C
CSF is bound d by the Bras
silia (W), Rioo Preto (NW), Riacho
do Ponta al (N), Sergip
pana (NE), Araçuaí
A (SE) and Alto Rio
o Grande (S)) orogenic beelts.
The CSF exhibits tw wo large areas of crysta lline baseme

ent: one in the north andd northeast (State of
Bahia) aand another in the southh (Iron Quaddrangle, State of Minas Gerais).
G Intruusive plutoniic bodies
(granite batholiths) and
a two area as of youngeer rocks occuur: the Phaneerozoic San Francisco Basin
B and
the Prote
erozoic Para amirim Aulac
cogen.
The Saoo Francisco Basin is the most elonga

ated portion of the CSF, with an appproximate north-south
trend. This comp prises the Espinhaço and Sao Francisco Supergrou ps, which are of
Palaeo/M
Mesoproteroozoic and Neoproterozoicc ages, respe
ectively.
outh-east of the State of Bahia, lithollogies include rocks from

In the so m the metamoorphic-magm matic and
granuliticc complexess (Pre-Espinhaço age), w which are divergently ovverlapped byy lithotypes from the
de Almeida Metamorphic
Licínio d c Complex, Espinhaço Supergroup
S and Santo O Onofre Group. In the
Pre or S e sub-alkalin e granitic intrusions ass
Sin-Espinhaçço, there are sociated withh the Intrusiv
ve Lagoa
Real Suite.
The prim
mary lithotypes of the Pre
e-Espinhaço o Basement comprise ortthogneisses and paragne eisses of
quartz-fe omposition, which were migmatised
eldspathic co d and metam morphosed tto amphibolite facies
(plagioclase, microcline, quarttz, biotite) or higher (plagioclase e, mesopert rtite, quartz,, biotite,
hypersthhene, hornbllende). The intrusive roccks are reprresented by basement ggranitoid intru usions of
generations and by ultrab
various g nd dikes that also occur in
basic sills an n the metaseedimentary cover.
c
These litthologies we ed by extensiive detrital ro

ere re-covere ocks represe ented by thickk colluvial an
nd eluvial
suites, in
ndicating varrious cycles of erosion d
during the Te d. When assoociated with iron and
ertiary period
mangan niferous formmations, they y represent deposits of o secondary y economic interest co omprising
hematitee/itabirite peb
bbles, blocks
s and bouldeers, which arre especially evident in thhe western section
s of
PdF Dep posit.
Ferrugin
nous laterite cover, which is presentt throughout the eastern section of tthe mineralis sation, is
made up of a hard d shell of de
etrital conglo
omerate com mposed of grains,
g fragm ments and blocks
b of
hematite
e and itabirite
e agglomerated by goethhitic/limonitic cement. This material is known as ca
anga.
The prin
ncipal minera
al deposits foound in the re on, uranium, manganese and amethy
egion are iro yst quartz
(of gem quality) with
h the latter two
t being inttermittently exploited
e in a rudimentaarily manner by small
scale miining.
The iron n formations of the PdF Deposit are considered to be Lake Superior-type
S e of Proterozzoic age.
Characte eristics of note include regular band ding with millimetric and
d centimetricc thicknessees of iron
alternating with ban nds of silica, of fine to large granuulometry, andd containingg lithologies such as
itabirite and hematitte (high-gradde material wwith depleted
d silica). The
ey form largee mineral deeposits of
iron ore as, for exam mple, the Iron
n Quadranglle deposits inn Brazil and those typicaal of Lake Su
uperior in
Canada.
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Chapter 3 – MINERAL RESOURCES
3.3.1 Local Geology and Mapping Program
A detailed geological mapping program was carried out during the drilling programme in 2007 and
2008 with the aim of collecting additional field information; the focus was on metasedimentary rocks
with potential for hosting iron and manganese mineralisation. The starting point was the regional
geological-structural map, by the Mineral Research Company of Bahia and an aeromagnetic survey.
Based on these, a work program was established to gather complementary information.
Exposures along roads, open trails in forest and scrubland, and in drain cuttings were mapped. All
areas with first and second order aero-magnetic anomalies were also visited.
This information increased the density of locations visited and served as a basis for establishing the
contacts between regional rock types with greater clarity. Occurrences of iron formation,
manganiferous formation and metabasic rocks were mapped, as presented in the geologic map in
Figure 3.2.
3.3.2 Deposit Geology
A 1:5,000 scale geologic map is shown in Figure 3.2.
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Figure 3
3.2 – Detaile
ed geologica
al map of th
he PdF Depo
osit, showing cross-secction lines
3.3.2.1 Litho-stratigraph
hy
Mapping
g showed me ary lithologiccal layers of stratabound geometry, sstriking north
etasedimenta h-south in
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concordance with the regional crest lines, with an average dip of 45°. Such lithologies were
correlated to the Oliveira dos Brejinhos Group.
Quartzite and iron formations make up the highest points of the local relief, sustaining the ridges at
altitudes ranging between 950 m and 1,100 m. In the lower parts, at altitudes ranging from 850 m to
870 m, biotite-mica white-schist is predominant.
A typical east-west geological cross section of the mapped area, see Figure 3.3, has schist overlaid
by iron formations of hematite and itabirite. These rocks are often covered by reddish brown detrital
sandy clay loam and ferruginous laterite and canga. The basal rock underlying the iron formations is
white sericite-quartzite which near the contact with itabirite is covered by eluvium-colluvium deposits
of hematite and itabirite. Manganiferous lenses of decimetric and metric length also occur at the
geological contact between basal quartzites and itabirite.
Stratigraphically, the PdF iron formation overlies quartzites related to the Fazendinha Formation and
underlies schists related to the Mosquito Formation; both belong to Oliveira dos Brejinhos Group –
Espinhaço Supergroup.
The banded ironstone formation layer (BIF: in the case of PdF this is itabirite, a metamorphosed BIF)
varies in thickness from 30 m, between cross-sections TR-8.900 and TR-10.200, to a maximum of
120 m between cross-sections TR-10.300 and TR-14.600, see Figure 3.4. It has an inferred depth of
up to 700 m down dip.
Ferruginous laterite/canga and/or eluvium-colluvium deposits of hematite and itabirite have

thicknesses from 3 to 10 m.
The hematite body is predominantly friable and has a strike of 1,800 m (between cross-sections TR-
10.400 and TR-12.000) and a maximum width of 90 m. From cross-section TR-12.100 north, it thins
to less than 15 m and it was intercepted by drilling until cross-section TR-12.600. It is located
immediately below the hanging-wall schist and is commonly inter-fingered with itabirite lenses due to
intense isoclinal folding and transposition.
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3.3 – Cross--section TR--10.900, reprresenting th

Figure 3 he maximum
m width of h
hematite
Figure 3
3.4 – Cross--section TR--12.500, sho
owing the maximum wid pted by drilling
dth intercep
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The ironn mineralogyy is predominnantly hemattite/ specularrite; with mag

gnetite, marttite and clay minerals
occurring in smaller amounts (Figure 3.5). H P has low levels of conntaminants; the most
Hematite at PdF
significa
ant being maanganese dio oxides, quart
rtz, amphibolle and clay minerals in vvery thin lay yers, with
alumina and phosph horus in the goethite
g d limonite zones. Contam
and minants occuur more com mmonly in
the com mpact to semmi-compact lithologies a nd near to the surface, with mangaanese dioxid des, clay
mineralss, and phosp phorous beinng the most iimportant. Thhe total iron content (Fettot) averages
s 65% for
the hemmatite types in
n the Mineral Resource sstatement.
Figure 3
3.5 – Detail of
o compact hematite ou
utcrop
The itab
birite outcrop has an averrage width off 90 m and extends
e over 4 km north-ssouth. Except for the
north annd south regiions of the deposit,
d i absent, the itabirite is located beneath and
wherre hematite is
to the weest of the he ally made up of bands of quartz
ematite. Itabirite is typica q intersspersed with bands of
hematitee/specularite, magnetite e and marttite. The ittabirite outc crops have different levels of
compacttness, from friable (pow wdery) to co mpact, the prevalence being semi-ccompact to compact
(Figure 33.6). Strips and
a levels with
w limonite a and goethite also occur.
The Fe content of the itabirite averages

a % in the Min
32% neral Resource statemennt, with low levels of
contaminants. Near contact with h waste matterial (schistt with itabirite and cangaa with hema
atite), the
occurren
nce of phosp
phorous and manganese is more freq quent.
Low Mn itabirite occcurs immedia ately below tthe hematite and varies from
f friable tto compact. High Mn
itabirite preferentially forms lenses in the bbase of the iron formation body, neear the con ntact with
footwall quartzite.
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Figure 3
3.6 – Overview of comp
pact itabirite
e outcrop
The perccentage distrribution of the lithotypes in the PdF Mineral

M Resource statemeent is:
 Friable itab
birite – IF: 15
5%;
 pact itabirite – IS: 18%;
Semi-comp
 Compact ittabirite – IC: 40%;
 Manganiferous itabirite
e – IMN: 3%;
 Friable hem
matite – HF: 20%;
 Semi-comp
pact hematite
e – HS: 2%;
 Compact hematite
h – HC
C: 2%.
Thin lenses of amph hibole-schist,, with a maxiimum width of 13 m, are located withhin the iron formation
f
in the so
outhern part of the area, between cro ss-sections TR-9.600
T and TR-11.6000.
Detrital fferruginous laterite

l (cang
ga) and eluv ium/colluviumm hematite/ittabirite depoosits cover allmost the
whole e extent of thee mineralisattion, particu larly near itts geological contacts. T The cover thickness
t
ranges ffrom 3 to 20 m and the Fe content is approximate ely 50%, with high levels oof P and Al2O3.
3.3.2.2
2 Stru
uctural Featu
ures
The PdF F Deposit deeveloped as a result of deformation and metamorphism of tthe metased dimentary
sequencce described above. Stru gy is therefo
uctural geolog nce in the coontext of ore genesis.
ore of relevan
Along w with other asspects such as lithologyy, level of weathering
w and metamorrphism, som me of the
d structures control the geometry
identified g andd distribution
n of the minerralised bodiees.
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Planar sstructures (ssuch as bedding, foliatio

on, joints, fra
actures, faults, fold axiaal planes) and linear
structure
es (such ass stretching lineation, lin
neation of crenulation,
c fold
f axis annd hinge zones) are
present along the deeposit outcrops.
Foliation
n and stretch
hing of linea
ation are the
e most imporrtant noticeaable structurees of the de
eposit, as
they help determine the geometrry and spatiaal position of the mineralis
sation.
The folia
ation is charracterized as
s being a tra ansposition foliation. In fact, the conntinuous pro
ogressive
characte
er of the defo
ormation eve ent that geneerated such foliation
f enab bled an intennse transpos
sition with
1,068 occcurrences along
a the dep
posit with an estimated maximum
m of 092°/45°.
0
eing printed on the plane of the folia

While be ation, the strretching lineation is alsoo related to the
t same
deforma
ation event and
a is one of the mos t important groups of structures
s froom the viewwpoint of
geometrry and spatia n of the minerralised body.
al distribution
The line asured at 44 locations in

ear structures were mea n the deposit. Statistical analysis ind
dicated a
maximum at 071°/37 7°.
The streetching lineaation, printedd on the plaane of the ro ock foliation provides th e plunge off the iron
mineralissation and in
ndicates the direction of tectonic tran nsport respon nsible for thee current geo
ometry of
the depoosit, thus indicating that the
t thrust zo nes of the Brazilian Even nt in the PdFF area were formed
f in
an obliqque ramp. Indeed, the e deepest drillholes (u up to 500 m) m corroboraate that plunge by
demonstrating that thet itabirite and
a hematite e bodies hav ve a northea ast dip whenn considered d along a
longitudinal section along
a the iron formation llayers of the deposit.
The tecttonic contaccts between the differentt lithologies mapped in the deposit aare defined by thrust
faults re
elated to a re
everse shear zone. As thee shear prog gressed, an intense transsposition of the
t rocky
layers occcurred.
The main kinematicc indicators suchs as the stretching lineation, thee hinges andd axial plane es of the
folds, in addition to sigmoids
s andd other rotatiion indicators
s, suggest a thrust zone that took pla
ace in an
oblique ccollisional tectonic system
m.
3.4 EXPL
LORATIO
ON MET
THODS AND RE
ESULTS
S
Initial acctivities inclu
uded a topoggraphic surve
ey, analysis of existing geophysical
g data, and trrenching.
These stages are de escribed belo
ow.
3.4.1 Topographic Surveyy
Due form
mal authorizations were obtained fro
om all landow
wners prior to carrying oout the topog
graphical
d geological exploration.
work and
Fieldworrk began on November 17, 2005, th

hrough imple
ementation of
o topographiical markers for geo-
referencce.
Starting at topograph
hical markers
s M3 and M7
7, the initial survey
s work included:
 Opening of a north-sou
uth base line
e, parallel to the general direction of the mineraliisation at
an interval of 50 m;
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 Opening of transversal lines staked out at 100 m intervals to the base line every 100 m, in
an east-west direction, perpendicular to the general direction of the mineralisation;
 Land detailing work;
 288 drillholes were located in the field with their collar coordinates, azimuth and dip
determined after completion;
 183 trenches were located and opened in order to better define the geological contacts and
to obtain samples for chemical analysis; and
 Mapping of the property lines of one hundred rural properties in the project area, totalling
8,818 ha area and 325 km borders.
Figure 3.7 shows the topographic map obtained, with contours spaced at every 1 m, and used as the
basis for mineral research work carried out in the PdF Deposit area.
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Figure 3
3.7 – Topographic contours showin
ng the mine
eralisation and the projeected final pit
3.4.2 Geophysics
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The aeromagnetic data used were part of the Aerogeophysical Survey project by the Mineral
Research Company of Bahia, carried out between 2005 and 2006 and known as "Campo Alegre de
Lourdes – Mortugaba Aerogeophysical Survey," which covered an area of approximately 71,000 km2,
with 157,000 linear km, with spacing of 500 m between the flight lines.
This data aided regional mapping and later detailed mapping.
In the PdF Deposit area, there are two lithotypes associated with responses for magnetic anomalies:
iron formations (itabirite and hematite), due to the presence of magnetite, and manganiferous
formations, due to the presence of jacobsite and magnetite minerals.
Some iron and manganiferous formations show a low magnetic response, as is the case of those
present in the PdF Deposit. Figure 3.8 shows the relation of the manganese and the iron formation
mapped in the PdF Deposit area and the magnetic responses of the Aerogeophysical Survey, where
it can be clearly noted that, in some locations, the iron and manganiferous formations show very low
magnetic responses or even none at all. Figure 3.9 illustrates the low magnetic character of the iron
formation and of the manganese that is present in the PdF Deposit.
Geoexplore Consultoria e Serviços Ltd was hired to refine, process and interpret the magnetic and
gamma-spectrometric data from the Mineral Research Company of Bahia survey, using 2D inversion
and modelling of the magnetic anomalies. The objective was to establish the magnetometric signature
of the iron formations of the PdF Deposit and identify potential areas (including blind targets) for
discovering iron deposits.
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Figure 3.8 – Reg gional geolo ogical map

p, showing the correlation betw
ween the magnetic
anomalies with the iron occurrrences
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Figure 3
3.9 – Geolo
ogical map of the PdF F Deposit arrea, showing the correelation betw
ween the
magnettic anomalie
es with iron occurrences
s
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Modelling of the aerogeophysical data assisted in defining probable geological bodies and the
magnetic boundaries of the iron formations. This modelling was done through adjustment of the
magnetic field observed using a modelled field as well as by the contrasts of magnetic susceptibilities
measured in the field, with limits also being suggested for the enclosing rocks and the possible
position of the more susceptible or less susceptible bodies.
The data from the aerogeophysical survey was cut and divided into sub-areas. This procedure
eliminates interference from other sources and reduces noise in interpolation.
3.4.3 Opening and Profiling of Trenches
During the February and April 2006, 183 trenches were excavated and opened in one of the PdF
Deposit areas (DNPM 870830/2004) to:
 Define lithological contacts between the iron formation (itabirite, hematite, eluvial-colluvial
deposits and lateritic cover) and the host rocks - quartzites and schists; and
 Collect larger samples in order to characterize the iron formation (hematite and itabirite) of
the eluvial-colluvial (transported) deposits and the laterite cover.
The outcomes included:
 Observation of an increase in the quantity of hematite blocks relative to the itabirite blocks in
the southerly direction;
 Better definition of the lithological contacts between the itabirite and the basal quartzites, as
well as demarcation of the hematite body;
 Determination of the greater occurrence of eluvium/colluvium of iron mineralisation in the
southern part, with an approximate length of 2,000 m and average thickness of 3 m. These
deposits had a lower content of hematite and itabirite blocks (25% to 40% in volume) and a
sandy clay matrix; and
 More samples and improved definition of the target.
3.4.4 Detailed Geological Mapping
Detailed geological mapping was carried out over the iron formation and its host rocks in order to
improve knowledge of the tectonic-stratigraphic sequence and support planning of exploration works.
The mapping was developed in two stages following the land acquisition process and the progress of
trail opening and altimetry plan survey. The first stage was field planning and the second involved
detailed geological mapping.
The planning that preceded the mapping work used the SIG (Sistema de Informações Geográficas –
Geographic Information System) through the ArcGis 9.3 ESRI Software, which analysed the data
including aerial photographs and satellite images available, field spots, location of cities, roads, paths,
hydrographic network etc.
The geological mapping was carried out on a plotted cartographic base, where notes were taken on
mapping progress (described points, geological contacts, the symbols of structures, water courses,
and all other geological and cultural data).
The detailed geological mapping exercise resulted in the 1:5,000 scale geological map, as can be
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seen in Figure 3.2.
3.5 EXPLLORATIO
ON A
AND RESOUR
R RCE DEFINITION
DRILLLING
Drilling w
was the princcipal direct exploration
e mmethod used to obtain de
etailed inform
mation on the
e volume
and qua ality of the PdF
P Depositt. Drilling ddelineation was
w based on
o preparatoory exploration work,
particulaarly topograpphical survey ng and detailed geological mapping aas describe earlier in
ying, trenchin
this Chaapter.
The ironn formation outcrops

o at surface
s with a variable east
e – southeasterly dip,, ranging froom 40º to
50º. In consequencce, drilling was w done too varied targ
get depths, ranging from m 50 to 500 0 m, with
sampling g for quality assessment and definitio on of the min
neralisation and
a waste rocck relationsh hips. This
provided d important and necessary supp port for thee geological modelling,, Mineral ResourceR
assessm ment, block models,
m pit slope
s sizing and angles,, mining sequence, metaallurgical tes sting, etc.
To this effect, four different drilling campa aigns were conducted
c over nine ye ars, until 20 015, with
differentt goals: geo ological explooration rotarry diamond core drilling g; geologicall explorationn reverse
circulatio
on (RC) drilling, large diaameter (or g gical) drilling, and geotecchnical drillin
geo-metallurg ng (using
core drilling). An additional
a campaign desiigned to tak ke hydrogeollogy measurrements, which used
instrume ents installed
d both in exploration and geotechnica al drillholes, was
w also unddertaken.
In total, 374 drillholles (61,555 m) have be een drilled between 2006 and 20155. Table 3.1 and the
following d account off the drilling campaigns. Geological modelling off the PdF
g sections giive a detailed
target arreas was bassed on all the informationn obtained in n these drillh
holes, which had an averrage core
recoveryy of over 855%. Howeve er, the 20066 diamond drillholes
d werre not includded in the geological
model because of th he small diammeter of the h
holes.
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Table 3.1 – BAMIN drilling campaign data from 2006 to 2015

Campaign Drilling Type Drilling Code No. Holes Meterage No. Samples
Diamond core SRT 45 4,401.8 662
2006
Sub-Total 45 4,401.8 662
Geotechnical (core) SGT 3 307.6 9
2007
Reverse circulation SCR 23 1,875.0 1287
Sub-Total 126 22,075.0 3,811

Geotechnical (core) SGT 38 6,463.3 415
2008 Large diameter SLD 14 1,197.3 0
Reverse circulation SCR 31 3,121.0 2710
Sub-Total 109 18,024.5 3,724

2009 Geotechnical (core) SGT 5 1,838.1 21
Sub-Total 8 3,082.6 101

2010 RDM Acquisition N/A 15 1,293.0 221
Sub-Total 21 3,423.5 353

Large diameter SLD 7 549.3 0
2012
Total 7 549.3 0
2013
Sub-Total 47 5,292.9 1,146
2015
Sub-Total 11 4,705.6 212
Total 374 61,555.1 10,009
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Table 3.2 gives the average recovery rates of each drilling method according to the drilling campaign.
Table 3.2 – Average recovery rates of drilling campaigns

Campign Drilling Type Drilling Code No.Holes % Recovery
Diamond core SRT 45 89

2006
Sub-Total 45 89
Geotechnical (core) SGT 3 96

2007
Reverse circulation SCR 23 83
Sub-Total 126 94
Geotechnical (core) SGT 38 92

2008 Large diameter SLD 14 98
Reverse circulation SCR 31 90
Sub-Total 109 86

2009 Geotechnical (core) SGT 5 86
Sub-Total 8 70

2010 RDM Acquisition N/A 15 -
Sub-Total 21 94
Large diameter SLD 7 -

2012
Total 7 -

2013
Sub-Total 47 89

2015
Sub-Total 11 94
Total 374 86
3.5.1 Drilling Database
BAMIN’s geological exploration data has been managed by a database team. This team also controls,
stores, validates, and distributes other data and documents, such as piezometer data, maps and
sections in GIS software, diverse management reports and web publications.
The BAMIN drilling database is modelled, implemented and preserved so as to secure the integrity of
data generated and facilitate data access and interpretation. By means of standards for data
validation, input, preservation, and updating, the data management approach avoids errors that might
build up during data processing workflow.
Data from drilling, assays of core and other samples, geological and structural logging, density tests,
particle size analysis and chemical analyses, etc., have been validated and checked before final input
to the database.
Every drillhole has a digital file attached to it, as well as a hardcopy log sheet containing all individual
data relative to planning, operations, completion and treatment.
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Other da
ata and docu
uments generated by thiss team are also filed in ha
ardcopy and digital forma
at.
The drilllhole hardco opy filing sys

stem consistts of separate files for each
e hole sttandardized for quick
access a and easy und derstanding of all origina ed into the drilling databaase. Drillhole
al data inserte e files are
organize ed in specially sized cabinets to main ntain access. Each hardc copy file reprresenting a particular
p
drillhole is filed by alphanumerica al sequence.. Figure 3.10 0 shows the filing
f organizzation.
Figure 3
3.10 – Drillho
ole data hardcopy filing arrchive
3.5.2 Rotary Ex
xploration D
Drilling
BAMIN u
used rotary drilling
d (diam
mond core dri lling) as its principal
p tool for exploringg the depositt.
The exp ploration drilling was estaablished andd conducted along sectio ons perpenddicular to the e general
direction
n of mapped d rock types (biotite-schisst, ferrous fo
ormation, quartzite), withh an initial sp
pacing of
400 m b between drilllholes. This grid was u used as a first
f approacch in order to identify the t most
attractive
e targets andd delineate the ferrous fo
ormation/host rock and co ountry rock ccontacts.
Subsequuently, the grid was tightened to 200 m between drillholes, in order to impprove the deffinition of
eralised bodies and collect more deta
the mine ailed data forr the geologic
cal model.
0 m in 2013, thus enablinng high confiidence in

The drillling grid wass further tighttened to a s pacing of 50
the geoological conttinuity, and classification n of nearly all Mineral Resources within the resource
reportingg shell outline to the Meaasured and In ndicated cate
egories.
Whenevver possible during the ro otary exploraation drilling campaign, drillholes

d weere planned to obtain
intercepts at right an
ngles to mine a.
eralised strata
BAMIN – P
PdF Project BFS
S, August 2016
82 / 783
Drillholes were initially drilled with dips ranging from 60º to 90º relative to horizontal. The adopted
procedure was to duly down-hole survey all drillholes exceeding 100 m depth. The deeper holes were
surveyed until their ends; they did not show significant changes in the initial path, normally tending to
turn perpendicular to the rock layers. Inclined drillholes were surveyed using optical systems (such as
Maxibor or Deviflex). Vertical drillholes were surveyed by gyroscope. Some drillholes exceeding
100 m depth could not be surveyed due to operational problems, such as instrument breakage
requiring lengthy repairs, and tools stuck in drillholes impairing the descent of the survey instrument,
or losing or refusal of the drillhole. No down-hole geophysical measurements were made.
Drill core was laid in wooden core trays with capacity for 3.0 m of H size and weight of 40 kg. Drill
advances were separated by pegs inserted between corresponding core sections, and complemented
by aluminium data plates recording total depth, advance, and recovery of each advance. All core
trays were identified with aluminium plates recording drilled target, drill hole number, box number,
depth (from-to) and drilling contractor logo.
A minimal recovery tolerance of 80% per 3 m advance was required as well as an overall recovery of
85% for each completed drillhole.
The PdF exploration core drilling operations occurred during 2006, 2007, 2008, 2009, 2010, 2013 and
2015.
3.5.2.1 2006 Campaign
During 2006, 45 drillholes totalling 4,401.8 m were completed. The holes were drilled by contractors,
namely Mariana Mineração Ltda and Minas Trading, operating Maquesonda and Diacore rotary drill
rigs with conventional and wire-line tooling systems. HQ size barrels were used, yielding core of
approximately 63.5 mm diameter. Due to various limiting factors, such as non-completion of drillholes
and low core recovery, these drillholes have not been used in the geological model and consequently
to prepare the Mineral Resource assessment. However, the data obtained was used to define
subsequent drilling campaigns.
3.5.2.2 2007 Campaign
During 2007, 126 drillholes totalling 22,075.0 m were completed. Geosol - Geologia e Sondagens
Ltda was contracted for this campaign, mobilizing ten drill rigs (Longyear, Maquesonda, Boyle and
Sondeq models), tooled with conventional and wire-line systems. These tools included 3.05 m drill
rods, and 2.40 m length HTW size barrel & casing units, yielding core of approximately 76.3 mm
diameter.
The Maquesonda Mach 1200 6 cylinder engine drill rigs had the nominal capacity to drill to 600 m in
HQ size and 800 m in NQ size. Four of these rigs were applied to holes with depths exceeding 350 m
and six drill rigs with 4 cylinder engines were used for holes shallower than 350 m.
3.5.2.3 2008 Campaign
During 2008, 109 drillholes totalling 18,024.5 m were completed. The 2008 campaign complemented
the 2007 campaign and used the same contractor and equipment.
A number of the deep drillholes were started using a destructive tri-cone 5 inch drill bit for traversing
overburden rocks up to 100 m depth. This procedure saved time and costs.
Some of the drillholes of the geotechnical campaign were deepened in order to obtain intersections
83 / 783
with the iron formation. Piezometers were installed in 23 holes to monitor groundwater levels at
various stratigraphical levels of the iron formation and host rocks.
3.5.2.4 2009 Campaign
The 2009 exploration campaign was intended to complement and confirm data interpretations of
former campaigns, to improve the geological model and Mineral Resource assessment. Eight
drillholes totalling 3,082.6 m were completed. A number previously drilled drillholes from the
geotechnical drilling campaign were deepened to acquire additional geological data. In addition, 6
further drillholes were selected for piezometer emplacement.
3.5.2.5 2010 Campaign
During 2010, 6 drillholes totalling 2,131 m were completed by the contractor Boart Longyear. The
objective for this campaign was to understand the deep iron formation in area DNPM 811.466/1973,
which was acquired in 2010. As part of this acquisition, data for 15 drillholes totalling 1,293.0 drilled
by the former owner RDM was provided.
3.5.2.6 2012 Campaign
During 2012, 7 drillholes large diameter totalling 549.3 m were completed. The campaign objective
was the metallurgical test.
3.5.2.7 2013 Campaign
During 2013, 47 drillholes totalling 5,293 m were completed. The campaign objective was to reduce
the drilling grid spacing to 50 x 50 m and specifically increase information in the near-surface area
identified for early DSO production.
3.5.2.8 2015 Campaign
During 2015, 11 drillholes totalling 4,706 m were completed. The aim of the campaign was specifically
to upgrade the classification of the Inferred Mineral Resource in areas identified by the 2014 mine
scheduling work undertaken by BAMIN and SRK.
3.5.3 Rotary Percussion Drilling
Reverse circulation rotary percussive (RC) drilling was used as an auxiliary tool to rotary diamond
core drilling. RC drilling only recovers fragmented rock, ranging from drill dust to chips smaller than
20 mm.
Exploration RC drilling was deployed on the same grid as planned for rotary diamond core drilling.
Some of the shallower drillholes were completed with rotary percussive drilling in order to obtain
complete intercepts of the mineralised strata, whilst others were used only for starting some of the
deeper drillholes of the rotary drilling campaign.
In order to validate the quality of the RC drilling, a total of 383 m was completed in four RC drillholes,
at the same locations and with the same azimuth and dip as finished rotary diamond core drillholes
(DDH). The method was found valid, once traversed rock types and chemical quality could be defined
with some certainty after having obtained data from the twin drillholes.
A comparison between the twin holes in terms of recovery, mineralisation thickness and Fe contents
84 / 783
is shown in Table 3.3.
Table 3.3 – Comparison between twinned diamond drill and reverse circulation holes
Diamond Drill Holes Reverse Circulation Holes
DD Hole No Thick Rec % Fe % RC Hole No Thick Rec % Fe %
BRS00048SRT 121.50 97.12 43.40 BRS00220SCR 121.50 101.29 41.69
BRS00142SRT 84.32 95.34 46.25 BRS00221SCR 85.00 72.98 40.81
BRS00143SRT 100.55 96.30 39.12 BRS00208SCR 107.00 96.01 36.04
BRS00144SRT 74.05 92.94 44.71 BRS00222SCR 81.00 68.88 47.95
Average 95.11 95.70 43.16 Average 98.63 87.10 41.25
Note: Hole BRS00220SCR has a recovery >100%; this is possible when the hole intercepts friable
material and the drillhole walls have collapsed.
A simple statistical analysis in terms of the Fe grade on the four pairs of twin drillholes follows.
Twin holes BRS048SRT and BRS220SCR
Table 3.4 shows a simple statistical analysis in terms of the Fe grade of the twin drillholes while
Figure 3.11 shows a line chart comparing the Fe grades obtained in both methods. Note that, in this
case, the curves are almost coincident and the correlation was 0.96 concluding that both holes have a
very similar chemical behaviour.
Table 3.4 - Simple statistical Fe analysis for twin holes BRS048SRT and BRS220SCR
BRS00048SRT BRS00220SCR
DDH RC
Standard Deviation 15.44 16.03
Average Grade (Fe) 43.40 % 41,69 %
Correlation 0.96
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Figure 3
3.11 – Comp
parative Fe grade
g of the
e twin holes BRS142SR
RT and BRS2221SCR
Twin
n holes BRS142SRT and
d BRS221SC
CR
Table 3.5 below sho ows a simple statistical annalysis in terrms of the Fee grade of thee twin drillho
oles while
Figure 3
3.12 shows a line chart comparing the e Fe grades obtained in both methodds. In this case, there
is a smaall dislocatio
on of the RCC related to D DDH curve to t the right. This is likelyy explained by some
contamination of the e RC drilling from the topp to bottom, thet same phenomenon tthat happens s with the
mineralissation thickn
ness. The corrrelation is 0 .83.
Table 3..5 - Simple statistical

s Fe or twin hole
e analysis fo es BRS142SRT and BRS
S221SCR
BRS142SRT
B BRS221S
SCR
DDH RC
Standard D
Deviation 11.50 10.74
4
Average G
Grade (Fe) 46.25% 40.81%
%
Correlation
n 0
0.83
BAMIN – P
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S, August 2016
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Figure 3
3.12 – Comp
parative Fe grade
g of the
RT and BRS2221SCR
Twin
n holes BRS0
0143SRT e B
BRS208SCR
R
Table 3.6 below shoows a simple statistical an

nalysis in terrms of the Fe
e grade of thee twin drillho
oles while
Figure 3
3.13 shows a line chart comparing
c th
he Fe grades s obtained in
n both methoods. In this case,
c the
curves determine tw wo intervals s with anommalous chem mical behavio our that disstort significaantly the
averagee grade, redu
ucing it to 0.7
73.

s Fe
e analysis fo
or twin hole
es BRS0143SRT and BR
RS208SCR
BRS143SRT BRS208SCR
DDH RC
C
Standard D
Deviation 12.35 9.7
76
Average G
Grade (Fe) 39.12% 36.04
4%
Correlation
n 0.73
BAMIN – P
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Figure 3
3.13 – Comp
parative Fe grade
g of the
RT and BRS2208SCR
Twin
n holes BRS0
0144SRT an
nd BRS222S
SCR
Table 3.7 below shoows a simple statistical an

nalysis in terrms of the Fe
e grade of thee twin drillho
oles while
Figure 33.14 shows a line chart comparing
c th
he Fe grades s obtained in
n both methoods. In this case,
c the
curves ddetermine thrree anomalo
ous intervals distorting the average grrade and redducing the co orrelation
to 0.52.

s Fe
e analysis fo es BRS0144SRT and BR
or twin hole RS222SCR
BR
RS144SRT BRS222SC
CR
DDH RC
Standard D
Deviation 13.24 12.80
Average G
Grade (Fe) 44.71% 47.95%
Correlation
n 0.5
52
BAMIN – P
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S, August 2016
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Figure 3
3.14 – Comp
parative Fe grade
g of the
RT and BRS2222SCR.
This sta
atistical analyysis suggestted a reason nable correlation betwee
en the averaage Fe grad de in the
twinned holes and therefore
t the
e RC method d was deemed acceptab ble for use inn grade interrpolation,
where th
here is a lackk of diamondd core drilling
g.
The RC drilling was thus used as

a an auxiliarry tool to commplement rotary (diamonnd core) drilling. The
RC hole
es were located to obta ain interceptts at right angles
a to the dip of thee mineralise
ed strata.
Howeve
er, the maxim on of such drrillholes was limited to 70
mum inclinatio 0º from horizoontal.
Geosedna Perfuraçõ ais Limitada was contrac

ões Especia cted for the RC campaiggn. They mo obilized a
truck mo
ounted mode el TH10LM Ingersoll Ran
nd drill rig (F
Figure 3.15), equipped wiith a 900 PC CM x 350
e 3.16), as well as a support truck
PSI air compressorr unit (Figure k for tooling,, and all too
oling and
required
d drill bits.
The ma ain objectivee of RC drillling was too speed up data collection, princippally for definition of
geologiccal contacts between
b the iron formatio
on and barre s (schist and quartzite).
en rock types
The proccedures ado opted obtaine

ed samples o
of rocks drille
ed by using special
s cuttinng tools (buttton bit or
tri-cone bit), dual tub
be casings an
nd compresssed air as thee circulating medium.
BAMIN – P
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S, August 2016
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Figure 3
3.15 – Ingers
soll Rand Model
M TH10L
LM rotary pe
ercussive (R
RC) drill rig
Figure 3
3.16 – Argil 900 PCM x 350
3 PSI Air compressor unit
BAMIN – P
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S, August 2016
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Compressed air injected throug gh the drill bit carries rock dust and
a chips too the surfac
ce, to be
recovere
ed by a sammpling cyclo one, and sto he use of a down-hole hammer
ored in plasttic bags. Th
enables continuous sampling, avoiding
a crosss contamina ation and ob
btaining maxximum recov very. The
average
e recovery ob
btained for th
he RC holes w was 87%.
The reco
overy was determined th
hrough comp
parison of the calculated weight withh the actual weight
w of
the samples.
The maxximum depth

h of the RC holes
h was 13
30 m with a diameter
d of 13.65 mm.
Sampless were colle ected in plasstic bags fixeed to the discharge pipe es of the cooncentrating cyclone,
taking oone sample per
p metre ad dvanced. Co ollected sampples were sp plit in Jones splitters pro oducing 2
subsamples, one of 1 kg and the other of 5 kg, both pac cked in pristtine heavy duuty plastic bags, and
duly labeelled. In add
dition, a repre
esentative saample of the
e larger chipss of the drilleed interval was
w taken
for petro
ographical deescription and stored in cchip boxes (F
Figure 3.17).
Figure 3
3.17 – RC ch
hip sample box
b (each in
nterval repre
esents 1 m drilled)
d
During 2
2007 and 200
08, 54 drillho
oles totalling 4,996 m of RC
R drilling was completedd.
Nine RC C drill holes totalling 1,0

062 m were o
on locations
s outside the e perimeter oof the minerralisation.
The objjective was to identify if any min neralisation was present in areas planned for project
infrastructure. The RC
R holes did not intersectt any mineralisation, as was
w expectedd.
3.5.4 Large Dia

ameter Drillling
During tthe first halff of 2008, a large diam

meter drilling
g campaign was compleeted with the
e aim of
collectin ed samples ffor geo-metallurgical testing.
ng up to 40 t of mineralise
The drilling contracto

or Geosol – Geologia e S Sondagem Limitada
L used four Maquuesonda drill rigs with
6 cylindeer engines equipped
e witth conventio nal tooling (Figure
( 3.18)), 3.05 m rodds, 1.5 m lon
ng barrel
and Zwff 7¾” diamete er casings, generating
g coore of 165 mm diameter (Figure
( 3.19)).
BAMIN – P
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S, August 2016
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Figure 3
3.18 – Maqu
uesonda six cylinder rig
g with conve
entional tooling for larg
ge diameter drilling
Figure 3
3.19 – Extracting the inn
ner tube of a Zwf 7¾” diameter
d corre barrel
BAMIN – P
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S, August 2016
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All large diameter drillholes were vertical, with a maximum depth of 145 m.
The 40 t sample was designed to be representative of the various rock types of the iron formation,
consisting of hematite and itabirite, including compact, semi compact and friable material for each.
The proportions of each were as they occurred in the mineral resource assessment at the time (Table
3.8). Note that the average grade of the previously reported Mineral Resource is considerably lower
than the current Mineral Resource Statement, as further discussed in Chapter 5 – Processing.
Table 3.8 – Distribution of iron formation lithotypes from large diameter drilling
BLENDING 40 t
Lithology %Fe %SiO2 %Al2O3 %Mn %P %LOI Distribution
Compact 66.13 1.90 1.69 0.013 0.239 1.37 3.85%
Semi-compact 67.88 1.85 0.77 0.025 0.062 0.38 5.73%
Hematite
Friable 66.49 3.94 1.11 0.023 0.020 0.47 11.34%
Average 66.80 2.99 1.12 0.022 0.072 0.61
Compact 35.32 50.74 0.72 0.200 0.055 0.41 36.30%
Semi-compact 41.95 38.72 1.15 0.458 0.040 0.67 14.74%
Itabirite
Friable 41.15 39.95 0.97 0.012 0.018 0.40 28.05%
Average 38.62 44.67 0.89 0.181 0.039 0.45
Total 44.52 35.95 0.94 0.150 0.046 0.49 100%
Large diameter drilling was completed on the same exploration grid on locations previously drilled
with HTW size. The percentage of mineralisation types obtained in the DDH drilling campaigns were
used to the metallurgical tests.
Large diameter cores were stored in wooden core boxes with a capacity of 1 m and approximate
gross weight of 65 kg (Figure 3.20). All boxes were identified with aluminium plates containing
drillhole identification number, depth, drilling contractor logo, box number and drill target area.
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Figure 3
3.20 – Large
e diameter core
c trays (1 65 mm)
An addittional 7 larg
ge diameter holes totallin
ng 549 m we
ere drilled in
n 2012 with the aim of collecting
c
al metallurgical testwork samples. The focus was on und
additiona derstanding the impact of DSO
production.
3.5.5 Geotechn
nical Drilling
g
The geo ompleted by Geosol Geollogia e Sonddagens Ltda using six

otechnical driilling campaigns were co
cylinder engine drill rigs equipped with HTW size wire-line tooling. Due to the opeerational pro oblems of
intersectting quartzite
e rocks, somme of the dril lholes had to
o be reduced
d to N size nnearing the bottom
b of
the drillh
hole.
In total, 46 drillholess were complleted for geo

otechnical roc
ck-mass modelling. Amoong these ho oles, four
were drrilled vertical and 42 we ere inclined dips rangingg from 60º tot 70º. Som me holes inttersected
mineralissed strata an nd others we
ere completeed in non-minneralised rocks to obtain data on the future pit
hanging-wall and foo otwall.
During tthe 2007 geo

otechnical ca
ampaign a to
otal of 308 m were comppleted in 3 hooles on Mine
eral Right
DNPM 8 870830/2004
4. During 20008, 6,463 m were completed in 38 8 holes, 26 (4,355m) on n Mineral
Right D
DNPM 87083 30/2004 and d 12 (2,1099 m) on DNP PM 870283//2005. The geotechnica al drilling
campaiggn was finalized in 2009, when anotther 1,618 m in 4 holes was compleeted on Mine eral Right
DNPM 8 870830/2004 4.
Three ccompleted exxploration drrillholes weree also re-en

ntered to deeepen them and reach layers of
schist an
nd quartzite to ormation on lless weatherred rocks below the mineeralised stratta.
t obtain info
BAMIN – P
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S, August 2016
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3.5.6 Core Tray

y Receptio n
Core traays were checked on arrival at th he core she ed by geolo ogists emplooyed by Mu ultigeo –
Engenha aria mineral and Geologia e Meio Ambiente Ltda L who we ere trained in core logg ging and
sampling ance with procedures esstablished by
g, in complia y the BAMIN N geology teaam (Figure 3.21).
3 To
this effe
ect, all core trays were checked wiith Drilling Log L Sheets issued by G Geosol – Geeologia e
Sondage ens Ltda. Inn case any trays
t h were checked carefully
- which y both internnally and extternally –
and/or d drilling log sheets contained prob lems or errrors, they were w rejecteed and retu
urned for
adjustme ents or corre
ections to the
e driller respo
onsible for th
he respective
e drillhole.
Figure 3
3.21 – Recep
ption of drill core trays by Multigeo
o geologists
s
3.5.7 Drill Core Photograp

phical Arch
hive
Before sstarting the drill

d core logg
ging processs, core trays were photographed twoo by two (Fig
gure 3.22
and Figuure 3.23).
Tray pho otos were ta

aken with sta andardized iidentification, without weetting the corre and always in the
same lo ocation and at same tim me of day, uunder diffuse e light and in same coonditions of distance,
diaphrag gm, focal lenngth, etc. Th
his procedurre warranted uality conditiions for eac
d identical qu ch pair of
trays. T Trays were photographe
p ed twice and photos werre analysed. Only the beest was accepted by
quality ccontrol underr Multigeo su
upervision.
BAMIN – P
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Figure 3
3.22 – Photo
ographing core trays
Figure 33.23 – Phottos of core trays accep pted by thee database: (left) core tray with HTW
H size
rotary d
drill; (right) core
c tray with ZW size d
drill core
When a accepted, photographs werew forward ed to the BA

AMIN database team foor validation, printing,
and harddcopy and digital
d filing. Only after B
BAMIN’s valid
dation of pho
otos was thee drillhole cle
eared for
and sampling.
logging a
3.5.8 Drill Core Logging
Drill core logging (F

Figure 3.24) was based on three fun
ndamental criteria: litholoogical, structtural and
BAMIN – P
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geotechnical. These ere investiga ted by senio

e criteria we or geologists
s and recordded on stan ndardized
logging worksheets in accordance with BAM MIN’s establiished proceddures. Loggiing and layo out of the
samplingg plan were e done exc clusively by the team of Multigeo o trained geeologists. Magnetic
ng was done by a trained
susceptiibility profilin d technician or geologist, but only aafter all other logging
had beeen completed d.
Lithological logging was

w based on o a master--sheet of standardized co odes and acrronyms (Figu ure 3.25)
and don ne on a specific worksheet as show wn in Figure 3.26. The objective
o waas to record contacts
between n different rock
r types by distinguisshing chara acteristic fac
cies and texxtural changges. The
establish
hed criterion
n, as defined d by operatioonal procedu ures, was to record onlyy lithological intervals
larger oor equal to 1 m length on the log g sheet. Sh horter intervals importannt for mineralisation
characteerization werre specified in
n the “observvations” field
d of the workssheet.
Figure 3
3.24 – Drill core
c logging
g benches
Figure 3
3.25 – Lithollogical logg
ging templatte
BAMIN – P
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Figure 3
3.26 – Stand
dardised cod
des and acrronyms for geological
g lo
ogging
Structura
al logging off drill core wa orksheet as shown in Figgure 3.27 be
as done on a specific wo elow, and
based on the masterr-sheet conta aining standa
ardized code
es and acronyms (Figure 3.26).
Figure 3
3.27 – Struc
ctural geolog
gy logging ttemplate
The geo
otechnical deescription wa
as done on a specific wo
orksheet as shown in Figgure 3.28 an
nd based
on a ma
aster-sheet co
ontaining sta
andardized ccodes and ac
cronyms (Figure 3.29).
nary identificcation of nattural fractures was conduucted on the

Whilst sstill in the field, a prelimin e core as
soon as it was extra acted from thhe barrel. Thhis was done e before the core was laiid down in core trays
and therrefore before e undergoing any transpo ort.
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Figure 3
3.28 – Geote
echnical log
gging templa
ate
BAMIN – P
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S, August 2016
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Figure 3.29 –Standard codes and acronyms for geotechnical logging
GEOTECHNICAL LOGGING CARD for RMR System (Laubscher 1990)
Recovery (REC) RQD

Total Length of recovered core (m) within geotechnical zone Total length (m) of pieces of intact core > 10 cm length within
geotechnical zone
Intact Rock Strengths (IRS) Micro Roughness
sc
Field Estimate Code Description Code
(MPa)
Material only chipped under repeated hammer blows, rings when struck >250 MPa Polished or planar slickensided 1
R6
Smooth Planar 2
Requires many blows of geological hammer to break intact rock specimens 100 - 250 Rough Planar 3
R5 MPa Slickensided Undulating 4
Hand-held specimen broken by a single blow of geological hammer 50 - 100 Smooth Undulating 5
R4 MPa Rough Undulating 6
Firm blow with geological pick indents to 5mm, knife just scrapes surface (Concrete ~35 25 - 50 MPa Slickensided Stepped 7
MPa) R3
Smooth Stepped 8
Knife cuts material, but too hard to shape into triaxial (cylindrical) specimens 5 - 25 MPa Rough Stepped/Irregular 9
R2
Not logged -1
Material crumbles under firm blows of geological pick, can be shaped by knife 1-5 Not required -2
R1 MPa
Indented by thumbnail (Gouge) 0.25 - 1
R0 MPa
Weathering
Description Code Field Guide
Unweathered UW Rock shows no sign of decomposition or staining
Slightly SW Rock is slightly discoloured but shows little or no change of strength from fresh
rock.
Moderately MW Rock strength is usually reduced by weathering. The rock may be highly
discoloured, commonly by Fe staining.
Highly HW Rock is weathered to such an extent that it has soil properties and will lose strength
when exposed to water
Completely CW Rock is essentially weathered to a soil, remnant rock fabric and structure will be
near obliterated
Joint Orientation Macro Roughness
Code Description
3. 60° - 90° 1 Straight
2 Slight Undulation
2. 30° - 60° 3 Curved
4 Uni directional wavy
1. 0° - 30° 5 Multi directional wavy
-2 Not required
-1 Not logged
Joint Wall Strength (JWS)
Code Description
0 Wall = Rock Hardness
1 Wall < Rock Hardness
-1 Not logged
2 Wall > Rock
-2 Not required
Lithological Description
Code Lithological Name Code Lithological Name
AR Sandstone IF Friable Itabirite
BA Basalt IP Dust Itabirite
CG Canga IS Semi-Compact Itabirite
CO Conglomerate LT Laterite
DB Diabásio MN Manganolite
ES Esteatite MA Marble
FL Phylite MG Migmatite
GB Gabro PX Pyroxenite
GN Gneiss QT Quartzite
GR Granite SI Siltite
HB Banded Hematitite SO Soil
HC Compact Hematitite VQ Vein of the Quartz
HF Friable Hematitite XT Schist
HP Dust Hematitite
HS Semi-Compact Hematitite
IC Compact Itabirite
Joint Infill
infill Code Infill Name Infill Infill Name
Code
anf Anfibólio lim Limonita
apy Arsenopirita mag Magnetita
bio Biotita mar Martita
cal Calcita mgs Magnesita
car Carbonatos mic Mica
chl Clorita msc Muscovita
clm Caulim prl Pirolusita
cly Argilo-minerais prx Piroxênio
cpy Calcopirita py Pirita
dol Dolomita pyr Pirrotita
fdp Feldspato qtz Quartzo
goe Goethita spc Especularita
grf Grafita src Sericita
grn Granada tlc Talco
hem Hematita
kyn Cianita
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3.6 MINERALOG
GICAL SA
AMPLIN
NG AND
D ANALY
YSIS
The follo
owing is a detailed
d outlin
ne of the co
ollection, prep
paration andd analysis sta
tages for drilling core
sampless. All rock samples
s colleected for che
emical analyysis, including those obtaained during regional
geologiccal mapping and detailing
g, received th
he same trea atment and physical
p prepparation.
The flowwchart shown in Figure 3.30 provide es a simplifieed view of stages involvved with drilling data,
from field drilling to geological
g ompanies responsible fo r each activitty.
modelling, indiicating the co
Figure 3
3.30 – Drillin
ng stages an
nd responsiible compan
nies
3.6.1 Drill Core Sampling
Core sa ampling wass carried ou ut focused o on five key characteristtics: geotechhnical, geolo
ogical or
lithologiccal, density, humidity and metallurg gy. This wa
as carried out accordingg to samplin ng plans
prepared d by geologiists and recoorded in stanndardised woorksheets, as shown in F Figure 3.31. Detailed
workshe eets were pre he different ssample types in accorda
epared for th ance with pree-defined opperational
procedures approved by BAMIN.
BAMIN – P
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Figure 3
3.31 – Stand
dard worksh
heet for core
e sampling plan
p
Geotechhnical, geoloogical and metallurgical

m sampling was
w underta
aken for all drilling type es, while
sampless for density and humidity
y assays werre only taken
n for rotary an
nd geotechnnical drilling.
ed, drillhole ID, sample plan date (date 1),

All workksheet fieldss were filled in, namely:: target drille
sample date (date 2), 2 pages us sed to deve lop complete e drillhole saampling plann, name of geologist
responsible for samp pling plan, na
ame of persoon technicallly responsiblle for sampli ng, sampled
d material
meteragge, interval (from-to)
( of sampled lithhology, recoovery in mettres, recove ry as a perrcentage,
sequenttial sample numbering provided byy BAMIN, sampled s lith
hology codee, sample weight
w in
kilogram
ms, number ofo samples an nd observatio
on field.
All samp
pling plans whether
w for geological, ge
eotechnical or
o geometallu urgical samppling, or for point-load
p
or shearr box test, orr density asssays for maggnetic susceptibility measurement weere conducte ed based
on core descriptions and these activities
a are described be
elow.
3.6.1.1 Geo
otechnical Sa
ampling
The maiin geotechnical sampling g criterion wa as to obtain intact drilling cores from
m different litthological
types to ensure theirr quality and integrity for mechanical tests.
t
Sampless were prepa ared directly at the drillingg site, carryin

ng out interval selection wwith whole cores
c and
depending on test tyype (uniaxial compressio on strength (U al strength, sstress strength, point-
UCS), triaxia
load stre
ength, directt shearing and joint she aring), located at interva als between fractures an nd joints.
Sampless were chosen and colle ected immed iately followiing removal from the corre barrel, wrrapped in
at least 10 layers of
o PVC film, identified, la abelled and further wrap pped in alum minium foil to
o prevent
moisturee loss and then labelled again.
a
Followin
ng selection and packag ging, samplees were placced in separate boxes wwrapped in cloth
c and
stored in the shade e, protected from sunlig
ght. On arriv
val at the BAAMIN core sshed, samples were
removedd from boxess and wrappe ed in gauze o
or bandagess; and then im
mmersed in pparaffin to to
otally seal
and prottect them against moisturre loss.
Point-loa
ad testing was
w carried out for estim
mating rock strength and was usedd mainly for material
comminution process characterissation.
“Clean” core sample es, approximmately 10 cm m in length (free from frractures, cavvities or veins) were
collected
d and placedd in the test apparatus. Assays werre conducted d for two reaadings: axial test and
diameter test. The sample
s was stressed
s unt il it broke. Th
he material’s
s rock strenggth value was directly
indicated
d in kN and converted
c intto MPa. Late
er tests used another app paratus in whhich material strength
BAMIN – P
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S, August 2016
102 / 783
was indicated directly in kgf/cm².
Shear box assaying permits peak and residual rock strength to be defined whether parallel or
perpendicular to discontinuity plans.
Samples were selected according to a pre-defined plan and five samples were used from each fitting
rock lithology. Direct shear field equipment, with hydraulic pump and comparison clocks for horizontal
and vertical displacement was used. Results were presented in graphical form, taking shear stress
(force) versus shear displacement.
3.6.1.2 Geological sampling
The geological sampling plan defined sample limits of minimum 1 m and maximum 5 m lengths for
each drilling core sample. Consequently, when a long homogenous lithological interval was sampled,
the first sample started at the lithotype top contact and has its limits determined every 5 m.
The main geological sampling criterion recommends that each lithological contact defined by the
geologist coincide with a sample limit. Thus, each sample was contained within a given described
lithological limit or was precisely equal to it so that a sample never spanned two different lithological
intervals.
In special cases, when a lithological interval was being sampled and its last 5 m sample did not
coincide with interval-base contact defined in the geological description, the sample size was
increased by up to 6 m. Lithological intervals of greater than 6 m were represented by two samples.
Geological sampling for chemical analysis was carried out only on half core, cut longitudinally.
For compact and semi-compact materials, cores requiring longitudinal splitting into halves were cut
with a circular power saw coupled to a diamond disk.
For wet materials, samples were dried in an oven at a constant temperature of 105ºC.
Physical sample preparation for lots prior to dispatch to chemical analysis laboratories comprised
three main stages:
 Crushing in a FURLAN jaw crusher, model BM2010 with 6 mm opening. Samples were
crushed until no fragments above this size remained on a 6 mm mesh screen.
 Grinding in a FURLAN roll mill, model MR2515 with 2 mm opening. Samples were ground
until no fragments above this size remained on a 2 mm mesh screen.
 Comminuted sample quartering to under 2 mm was carried out using a Jones splitter, with a
25 mm opening. Quartering was carried out repeatedly until two 250 g sub-samples were
generated from each collected sample; one was packaged, labelled and forwarded to the
chemical analysis laboratories, and the other was sent to the BAMIN reserve sample
archive.
Magnetic susceptibility readings were taken using a digital susceptibilimeter on the drill core surface.
Point measurements (with pin) were taken each metre, observing the predominant lithology interval.
Three readings were taken per metre of core, noting the average value on standardised worksheets.
All lithologies, including soils, were measured.
103 / 783
3.6.1.3 Geometallurgical Sampling
The 40 t sample was representative of the various rock types and grades making up the Mineral
Resource reported at the time. The latest Mineral Resource has changed, where the iron ore grade
has reduced. The impact of this is discussed in Chapter 5 – Processing.
Following the geological description, a large diameter drill core sample plan was prepared, in which
each mineralised interval of greater than 30 cm (recovered) in length was separated, taking into
account the various types. Intervals under 30 cm were included in a longer interval or predominant
interval lithology. Sterile material (lithology + contamination) intervals were not sampled.
The methodology for sample preparation is summarised in Figure 3.32.
104 / 783
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Figure 3
3.32 – Simpllified flowch
hart of large
e diameter core sample preparation
n
3.6.1.4
4 Den
nsity Tests
Density measurements were con nducted on m material fromm exploration n and geotecchnical drillholes with
a view to
o obtaining th
he dry base density of th
he different id
dentified litho
ologies.
Sample planning was undertak ken by the g geologists. Sampling

S wa
as carried oout by collec
cting one
sample of every lith
hotype prese
ent in a drillh
hole, althoug
gh two were m lithological intervals
e taken from
over 50 m. A standard 10 cm len
ngth was stippulated for de
ensity sample
es.
In geote
echnical drillh
holes, the de
ensity plan w d for all lithologies althouugh assays were
was prepared w only
BAMIN – P
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105 / 783
AL RESOUR
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conducte
ed for iron fo
ormations.
Density measurement was condu

ucted in thre
ee stages:
 The first stage

s involveed sample wweighing in air
a (wet base e weight). Thhe sample was
w then
wrapped in n plastic film
m for subsequuent weighin
ng by beaker with water using MARTE scale
model AC C10K with 0.1 g precisio on (Figure 3.33,
3 left). The
T samplee was then weighed
suspended d on a hook with a nylon n thread and immersed in beaker witth water (Photo 4.15,
right).
 The second stage com g the sample
mprised drying e by heating it in air circuulation and a renewal
oven by MARCONI mo odel MA035. Samples we ere collected
d in metal booxes and rem mained in
the oven fo
or two hours at 105ºC.
 The third and
a final stag
ge was dry sa
ample weighing to obtain
n the dry basee weight.
Figure 3 sion scales (left) and a sample weiighed in watter (right)

3.33 – Precis
These sstages provid

ded wet sample mass (m
mum), beaker anda water mass (mba), beeaker, waterr and wet
sample mass (mbaum), and dry sa
ample mass ((msec), all expressed in grams.
Sample volume (V) is

i thus calculated accord
ding to Equattion 1:
3
V = mbauum - mba [cm ]
Sample density was calculated (δsec), dry basse, according

g to Equation
n 2:
3
δsec = mseec / Vsec [g/cm ]
The den
nsity study re
esults for the
e PdF litholo
ogies underta
aken up to 2015
2 are preesented in Table
T 3.9.
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AL RESOUR
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This shoows density values

v and re
espective errrors relating to each litho
ology, togethher with a com
mparison
with prevviously used
d density valu
ues.
As expeected, the de
ensity values
s were high er for Fe-ric
ch lithologies
s and for co mpact mineralisation
types.
Density measureme ent difference

es observed for the date
es in the tab
ble reflect thee study deve
elopment
stages aand measure ed sample numbers,
n ages obtained for each llithology increasingly
briinging avera
closer to
o reality.
During sstatistical ana

alysis, some e anomalous values were e detected; these
t were cchecked, re-analysed
and, in ssome circum mstances, dis scarded. The e anomalous values cons sidered weree greater thaan or less
than one standard deviation fro om the mea an value. Figgure 3.34 shows a gra phic example of the
analysess of density results
r bove the green line or beelow the red line were
for friable hematitte. Values ab
considerred anomalo ous and exclu uded, as is sttandard prac
ctice.
Figure 3
3.34 – Sprea
ad of density
y values in ffriable hema
atite
BAMIN – P
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107 / 783
Table 3.9 – Comparison of density values from 2008-2015 (density in t/m3)

Data (March 2008 - PFS) Data (January 2009) Data (December 2015)
Lithotype Sample Sample Dry Natural Sample Dry Natural
Dry Density
Quantity Quantity Density Density Quantity Density Density
SO 73 1.5 95 1.45 1.49 127 1.39 1.4

CG 52 2.16 58 2.22 2.26 96 2.28 2.3
IF 132 2.26 148 2.26 2.29 251 2.28 2.29
IS 112 2.66 137 2.58 2.6 172 2.69 2.69
IC 74 3.1 102 2.98 3 208 3.01 3.02
IMN 2.58 54 2.48 2.5 71 2.29 2.31
HF 81 3.03 92 2.93 2.95 179 2.91 2.92
HS 22 3.37 32 3.25 3.26 38 3.13 3.14
HC 23 3.85 33 3.81 3.82 95 3.65 3.66
XAF 2.19 2.24 14 1.98 2.00
XA XAS 60 2.5 69 2.52 2.53
249 2.58 2.58
XAC 2.62 2.63
XTF 1.78 1.73 1.76
XT XTS 186 282 2.29 2.32 493 1.95 1.99
2.2
XTC 2.51 2.51
QTF 2.1 2.1 20 2.07 2.08
QT QTS 109 2.3 148 2.18 2.18
176 2.3 2.31
QTC 2.31 2.33
Key:
XAF Friable amphibolitic schist SO Soil
XAS Semi-compact amphibolitic schist CG Canga
XAC Compact amphibolitic schist IF Friable Itabirite
XTF Friable schist IS Semi-compact Itabirite
XTS Semi-compact schist IC Compact Itabirite
XTC Compact schist IMN Mangano-itabirite
QTF Friable quartzite HF Friable Hematite
QTS Semi-compact quartzite HS Semi-compact Hematite
QTC Compact quartzite HC Compact Hematite
3.6.1.5 Moisture content
The average moisture content was calculated to understand the variation between lithotypes.
Samples were prepared directly in the drilling area where intact core intervals were preferentially
selected. Core samples were collected immediately following the removal of the core from the barrel,
packed in at least ten PVC film layers, labelled and then further packed in aluminium foil to prevent
any alteration in the original rock moisture. In BAMIN’s laboratory in Caetité, pieces of core, generally
around 10 cm in length, were collected and weighed then dried in ovens for two hours at 105ºC, after
which they were weighed again.
Wet and dry sample masses (mum) and (msec), were obtained from these stages, both expressed in
108 / 783
grams. The result were then multiplied by 100 to obtain a moisture percentage.
Sample moisture (U) is then calculated according to Equation 3 below:
U = [(mum – msec)/ mum] x 100 [%]
A moisture study for the different lithologies, both for iron formation and waste materials, was
undertaken based on 45 samples.
Table 3.10 lists average moisture values obtained, as percentages, for different deposit lithotypes.
Table 3.10 – Moisture values per lithotype

Lithotype Moisture Content (%)
Hematite - compact -
Hematite – semi-compact 4.44
Hematite - friable 6.52
Itabirite – compact 0.82
Itabirite – semi-compact 3.92
Itabirite – friable 6.15
Quartzite 0.35
Amphibolite 0.76
Schist 11.73
For BAMIN’s PdF financial model an average 6%moisture factor was applied as it is a commonly
applied value for mining companies in Brazil and for being considered a conservative parameter by
BAMIN.
The moisture assay results show that the rock types with relatively high moisture content are the
friable rocks ranging from 6.1% to 6.5%) and schist (around 11% or 12%). The rock types with low
moisture include the compact rocks (<1%) and the quartzite and amphibolite (<1%).
3.6.2 Sample Chemical Analysis and Results
Chemical analyses were the responsibility of ALS Chemex Brasil (ALS), a company chosen by
BAMIN for its primary chemical analyses laboratories.
The umpire laboratory selected by BAMIN was SGS-Geosol-Lakefield, normally employed for check
analysis and geometallurgical test samples.
The selected laboratories are certified and globally recognised, and both followed directives in quality
control and quality assurance (QA/QC) programme protocols for chemical analysis devised by
BAMIN’s geology management.
Major oxides (SiO2, Al2O3, Fe2O3, CaO, MgO, Na2O, K2O, Cr2O3, TiO2, MnO, P2O5, SO4, BaO and
FeO) were routinely analysed for, in addition to loss on ignition (LOI). Results were expressed in
percentages both for these oxides and isolated chemical elements (Si, Al, Fe, Ca, Mg, Na, K, Cr, Ti,
Mn, P, S and Ba).
Final physical preparation was carried out by ALS and included various stages until a fused disk was
obtained from each sample. Fused disks were sent to the ALS laboratory Perth, Australia, for analysis
methods ME-XRF11s (previously ME-XRF6) and Fe-VOL05.
109 / 783
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Table 3.11 presents the oxides analysed

a with
h their assoc
ciated detection limits.
Table 3..11 – Detecttion limits fo

or ALS analy
yses
Method Oxide / Ele
ement Unit Lo
ower Limit Upper Limit
ME-XRF11s SiO2 % 0.01 70.00
ME-XRF11s Al2O3 % 0.01 30.00
ME-XRF11s Fe % 0.01 75.00
ME-XRF11s CaO % 0.01 10.00
ME-XRF11s MgO % 0.01 10.00
ME-XRF11s Na2O % 0.01 5.0
00
ME-XRF11s K2O % 0.001 5.0
00
ME-XRF11s Cr % 0.001 5.0
00
ME-XRF11s TiO2 % 0.001 20.00
ME-XRF11s MnO % 0.001 75.00
ME-XRF11s P % 0.001 5.0
00
ME-XRF11s Ba % 0.001 0.3
30
ME-XRF11s S % 0.001 5.0
00
ME-XRF11s LOI % 0.01 100.00
Fe-VOL05
5 FeO % 0.01 100.00
3.7 QUAL
LITY ASSURAN
NCE AND
D QUAL
LITY CO
ONTROL
L
3.7.1 Preliminarry Conside

erations
A qualityy assurance and quality control (QA/A/QC) program was deve

eloped by BA
AMIN’s geolo
ogy team
and implemented froom the start of
o drilling in 2
2006.
Main objjectives were

e to:
 Ensure the nd quality of samples collected;

e reliability an
 Control an
nalytical proc
cedures to kkeep the des
sired level of
o accuracy and precisio
on in the
database;
 Prevent errors from being entered iinto the database used to
o model mineeral resource
es;
 Demonstra ytical and sa mple varianc
ate that analy ces are small in relation tto geology va
ariances;
 Ensure that data acc
curacy can be confirm
med within reasonable
r limits throug
gh other
es; and
laboratorie
 Program, control
c and ensure use e of the various actions required too control andd ensure
quality of services rela
ated to physsical preparation and chemical anaalysis of the geology
manageme ent samples.
Quality ccontrol samp ples were generated durinng the physic

cal preparation procedurre, in compliaance with
BAMIN’ss physical prreparation floowchart, see Figure 3.355. This preparation flowchhart also included the
passage e of a pure quartzite sample (clean white) afterr processing of each sam mple. Qualitty control
sampless (duplicates, blanks and standards) always follow wed the pre--established order in the insertion
uality control samples, se
list of qu ee Figure 3.3
36.
Control samples we
ere inserted at
a random a
at least every
y 20 samples along all bbatches, thus
s making
BAMIN – P
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110 / 783
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identifica
ation of these
e samples by
y the laborattory difficult.
Figure 3
3.35 – BAMIN’s sample preparation
n flowchart
BAMIN – P
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Figure 3 mple of inserrtion list for drill core sa

3.36 – Exam amples
3.7.2 Control an
nd Quality Tools
The defiinition of BAM

MIN’s quality
y control toolss was set ou
ut according to
t quality prinnciples:
 Physical preparation:
p ensuring
e atability at thhe quartering phase,
acccuracy in terrms of repea
and avoidin
ng the possib
bility of contaamination an
nd operationaal errors; andd
 Chemical Analysis: ensuring
e epeatability and reprod
acccuracy in terms of re ducibility,
bias and operational errorrs.
precision/b
owing were used

The follo u as qua ools: blank, duplicate and standard ssamples. There were
ality control to
three ce
ertified standdards altogetther (PIP, PI F and PHR)), one (PIP) for iron low grade, one (PIF) for
intermeddiate iron graade and one HR). Two blank samples were also used, one
e for high iro n grade (PH
made up p of 99% purrity quartz (BBLQ) certifiedd by Mineraçção Santa Rosa and anoother one ma ade up of
carbon-pphyllite from the project region
r (BLF)..
3.7.3 QA/QC Results
3.7.3.1 Blan
nks
The Fe grade in the erial is gene rally very low

e blank mate w, with >94%% containingg <2% Fe an nd >99%
<3% Fe e. Figure 3.337 and Figurre 3.38 showw the genera ally good results for Fe values with a minor
number of anomalie es. Due to the very low w Fe grade in the majority of sam mples, the la
aboratory
performeed well, with no contamin
nation issuess identified.
BAMIN – P
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Figure 3
3.37 – Fe gra
ade in BLF blank samp
ples analysed between 2007
2 and 20015
Figure 3 ade in BLQ blank samp

3.38 – Fe gra ples analyse
ed between 2007 and 20015
3.7.3.2
2 Dup
plicates
Figure 33.39 shows the

t difference es in Fetot% between original and du uplicate sam ples. It show ws a very
good co orrelation, with few spurrious data p points. The extreme exa amples are probably du ue to the
duplicateed material being
b compleetely differen
nt from the original materrial and is moost likely nott the fault
of the laboratory, e.g
g. a blank sample instead d of the origin
nal core leng
gth.
Overall tthe results sh

how a high precision
p betw
ween sample
es.
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Figure 3
3.39 – Plot of
o duplicate analysis ag
gainst origin
nal Fe% sam
mple assay
3.7.3.3 Standards
ndards PIP, PHR and PIF

The stan P have labboratory perfformance sheets that incclude certifie
ed values
and sta
andard deviaations for Fe
eO and Fe2 O3. The three
t standa
ards were ffrom SGS GEOSOLG
Laborató
órios Ltda
Stan
ndard PHR (H
Hematite)
This standard is a he
ematite samp
ple and was analysed forr Fe2O3, SiO2, MnO, P2O 5 and LOI.
Figure 3
3.40 shows th he plot for Fe
e2O3, which indicates a good
g distribution of data aabout the meean, with
only onee sample fallling outside of
o 3 standard
rd deviations (SD). The mean of thee data falls ve ery close
to the ce
ertified stand
dard mean. There appea ars to be a slight
s cyclic pattern overr time, whichh is to be
expectedd of data from a normal laboratory. TTwo spurious s samples ha ave values > >100%, which h may be
the result of a lower than usual negative
n LOI value.
The plott for SiO2 sh

hows a similar trend bu ut with a higher frequenc cy of spuriouus data. Seven data
points show values outside of 3 SDs, at the e same time as the Fe data d perform
ming very weell. These
high values may be the result off residual sil ica being lefft in the analytical equipmment from a previous
sample. These value es are exace
erbated due to the low valuev of the hematite staandards and the high
BAMIN – P
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relative e
effect that sm
mall quantitie
es of residua
al material will contribute.
The plotts of standaard PHR exh w MnO and P2O5 readin

hibit very low ngs. Due to this, any deeleterious
material can make a large impact on the vvalue. This adds to the difficulty off accurate lo ow grade
readingss depending on the analytical metho od due to dettection limits
s. The resultss show varia
ation, but
are geneerally of good
d quality.
Figure 3
3.40 – Fe2O3 grades from
m analysis o
of the PHR standard
s sh
howing variaation over tiime
Stan
ndard PIF (H
High Grade Ita
abirite)
The plotts for Fe2O3 anda SiO2 forr the PIF itabbirite standard show that the standardds fall within 3 SDs of
the mea an, however theyt do tend to have slig htly positive bias. This is
s representedd well in the mean for
the dataa, which is almost
a 1 SD from the ce ertified standard mean. Figure
F 3.41 sshows the re esults for
Fe2O3, wwhich showss there to be two differen nt sets of data; one with a mean at ~773.2 and the e other at
~71.1. TThis may be due d to the laboratory rec alibrating the e equipment back and fo rth to find the e optimal
result, o
or possibly dued to a slightly differentt composition of sample. As the datta all fall witthin +/- 3
SDs, it iss still conside
ered acceptaable data. Noo issues are identified forr P2O5, MnO or LOI.
BAMIN – P
PdF Project BFS
S, August 2016
115 / 783
AL RESOUR
RCES
Figure 3
3.41 – Fe2O3 grades from of the PIF sttandard sho
m analysis o owing variattion over tim
me
Stan
ndard PIP (Ita
abirite)
The datta for the PIP itabirite standard

s shoows a poor spread of data,d with mmany of the samples
analysedd in late 200
07 to early 20
008 having m much lower values
v than 3 SD from thhe mean as well w as a
large sp
pread. Many of these sam mples were m mislabelled (actually nammed PHR, whhen they werre clearly
PIP stanndards). Figuure 3.42 shoows the data sorted by submission number from 2007 to 201 15, which
shows thhat the analyytical equipm
ment produce ed highly variable results until early 22008, after which time
the data
a has a mucch tighter cluster. This ch hange coincides roughly y with the inttroduction off wrongly
named ssamples. It may
m be repre esenting the laboratory eqquipment calibration beinng altered affter these
spuriouss results werre displayed, or possibly a change inn analytical equipment;
e itt may be unrrelated to
the namming of standaards changinng. These ressults should have encourraged reanallysis.
Figure 3
3.42 – Fe2O3 grades from of the PIP standard sho
m analysis o owing variattion over tim
me
The anaalysis of SiO

O2 in the PIP standards sshows good results, withh all bar onee sample within 3 SD
and a m
mean very cloose to the ceertified standa
ard mean. There is some
e cyclicity shhown in these
e results,
which sh
hows the mo ore natural laboratory pro gression ove
er time.
The leve n this standard are very lo

els of MnO in ow and often
n below dete
ection limits, sso are excluded from
BAMIN – P
PdF Project BFS
S, August 2016
116 / 783
this analysis. The P2O5 levels are generally within 3 SD, with one extreme value, which is seen in all
elemental and LOI plots. Due to the exceptional values, it can be assumed that it is an anomaly, for
example a non-standard reference material inserted by accident.
3.7.3.4 External Laboratory (Umpire) Duplicates
To ensure the high quality of results from the primary laboratory (ALS Chemex), one in 50 (2%)
samples, were sent to a secondary (umpire) laboratory (SGS Geosol) for chemical analysis.
Comparison and statistical assessment of analytical results obtained in both laboratories was carried
out. The umpire laboratory was only used for the 2006, 2007 and 2008 drilling campaigns. SRK UK
has suggested that ongoing umpire analysis be undertaken going forward.
Analytical accuracy shown by the difference between original aliquot (ALS) and duplicate pulp (SGS)
shall be at least 90%, with a maximum of 10% standard deviation allowed.
The umpire laboratory results for the period of between 2008 and 2009 show a high correlation with
acceptable standard deviations and high inter-laboratory accuracy (as seen in Figure 3.43). A minor
issue was detected where the ALS XRF method has an upper detection limit of 70% for SiO2
compared to 100% for SGS. There are several examples of waste material (particularly quartzite –
QT) with SiO2 reaching detection limit. This is not regarded as a material issue, as any material with
>70% SiO2 is waste material.
117 / 783
AL RESOUR
RCES
Figure 3
3.43 – Plot of
o umpire lab
boratory an
nalysis vs AL
LS Fe% sam
mple assay
3.7.3.5
5 Con
nclusions
Both thee blanks and d standards performed reeasonably well,

w with few
w spurious reesults within the data
populatioon. It was ha
arder to quan
ntify and ana
alyse the blanks’ perform me due to th
mance over tim he blanks
being a quartzite or Fe-poor sample, rathe er than perffect blanks. However, thhe performa ance was
satisfacttory and acce
eptable.
The stan
ndards had mixed
m performmances, but overall the vast
v majority of samples analysed we ere within
the gene
erally accepttable limit off three stand
dard deviatio
ons. The majority of elemmental analyyses also
shows ccyclical varia
ation with tim
me. This is nnormal for laboratories due to the cyycles of cleaning and
decontamination.
The dup plicate results are good and

a show a spread with very few results havingg a >5% diffeerence to
the original assay. The
T spurious data here iss probably mainly
m caused
d by assayinng the wrong
g material
the secoond time, andd probably no
ot due to lab
boratory errorr.
The ump pire laborato

ory samples were
w only se
ent between 2006
2 and 2008; howeverr, the results show no
quality isssues with th
he primary la
aboratory ALSS.
Overall, the results of the QA/Q

QC shows no
o material iss
sues with the
e drilling andd sampling data,
d that
BAMIN – P
PdF Project BFS
S, August 2016
118 / 783
AL RESOUR
RCES
would im
mpact the rep
porting of a Mineral
M Reso
ource.
3.8 MINERAL RE
ESOURC
CE EST
TIMATIO
ON
3.8.1 Introductio
on
The secction is sourced from the Pedra de Fe

erro Mineral Resource
R Esstimation repoort, authored
d by SRK
UK and dated April 2016,
2 see Ap
ppendix 3.1 – Mineral Re
esource Estim
mate.
This esttimate is an update

u to the
e previous M
Mineral Reso ource estimation (MRE) pprepared by SRK UK
for the PdF Deposit in Decemb ber 2014. Thhe MRE upd date was co ompleted byy Ben Lepley y, Senior
Consultaant (Resource Geology)), under the e supervisionn of Dr Luc cy Roberts, Principal Co onsultant
(Resourrce Geologyy), who are both full tim me employe ees of SRK UK. Dr Rooberts has sufficient
experiennce which is relevant to the style of m
mineralisation
n, type of dep
posit, the depposit in ques
stion, and
to the a
activity which
h she is und dertaking to qualify as a Competentt Person as defined in the t 2012
Edition oof the “Austtralasian Cod de for Repo rting of Exploration resuults, Mineral Resources and Ore
Reservees” (JORC Code).
SRK UK K is of the op pinion that th

he current drrilling information is sufficiently reliabble to interprret with a
high deg gree of conffidence the boundaries for the iron mineralisation and thatt the assay data are
sufficien
ntly reliable to
o support thee estimate.
The MR ogy involved the following

RE methodolo g procedures
s:
 compositin
ng of drillhole
e data;
 statistical and
a geostatis
stical (variog raphy) analy
ysis of compo
osites;
 block mode
el definition and
a coding;
 grade interrpolation (esttimation);
 block mode
el validation;
 on using the JORC Code
classificatio e;
 pit optimisa
ation to determine ‘reaso
onable prospe
ects for even
ntual econom
mic extraction
n’; and
 Mineral Re
esource repo
orting.
3.8.2 Data Colle

ection
The colllection and logging of all

a geologica l, assay, deensity and geeotechnical information from the
various methods of geological re esearch is d escribed in Sections
S 4.3
3 and 4.4. TThe data useed for the
Mineral Resource estimation
e is derived fro
om the samp pling and logging of diaamond core,, reverse
circulatio
on and trencch data colle
ected by the
e BAMIN team at Caetite e with direct input from MultiGeo
and SRK K UK staff, who
w were perriodically on- site between
n 2006 and 2015.
2
3.8.3 Geologica
al Modellin g
3.8.3.1 2013 and 2014 Modelling
Previouss geological modelling was

w undertakken in 2013 and 2014. These
T are disscussed in Appendix
A
3.1 – Mineral Resource Estimatee.
BAMIN – P
PdF Project BFS
S, August 2016
119 / 783
3.8.3.2 2015 Modelling
Prior to the 2015 geological modelling used by this BFS, the lithological logging and assay data was
reviewed by SRK UK using X10-Geo software. During the review, the data was evaluated, using
univariate and bivariate statistics, to determine the appropriateness of the logged units as estimation
domains.
It was noted that the lithological logging generally corresponds to the assay data, with two distinct
populations of data: itabirite material with grades ranging between 20 – 50% Fe, and hematite
material ranging between 50 – 70% Fe (total). Plots of Fe verses Al2O3, SiO2, P, Mn and LOI,
however, showed that the logged lithologies did not produce clean populations, with waste lithologies
mixed with mineralisation and high-grade hematite present in itabirite populations, and vice versa.
Assayed grade populations within the logged lithotypes were generally well-behaved and did not
indicate the need for additional sub-domaining. However, wireframes for the different lithotypes were
constructed in order to provide differentiated tonnage reports.
As a result of this preliminary statistical analysis, wireframe models were created using a combination
of logging codes and assay data, in order to produce continuous domains with grade populations
appropriate for grade estimation.
The geological models for the 2015 Model were completed using Leapfrog Geo® modelling software.
Drilling data, along with interpreted strings on vertical sections, were used to create continuous 3D
solid wireframes for mineralisation and waste units. BAMIN’s updated plan and section geological
interpretation strings were also used to guide the modelling, and found to be appropriate.
The geological model was constructed in Leapfrog Geo as follows:
 Imported pre-mining topographic surface.

 Imported topographic surface (correct as of 3 December 2015, including mined-out
volumes).
 Imported and validated the drilling database including lithological logging and assay data.
 Itabirite footwall and hanging-wall contact surfaces were created using lithological logging
and previous interpretation strings as a guide for geological structure.
 Hematite wireframes were created within the itabirite unit based on lithological logging
(adjusted where necessary based on Fe Total (Fetot) assay results), along with previous
interpretation strings.
 Created volumes, or “pods”, of itabirite dilution within the hematite unit.
 A canga/soil surface was created based on lithological logging and using topographic
surface as a guide. A perimeter string was later digitized to differentiate between soil and
canga.
 A high-manganese itabirite domain was estimated along the footwall of the itabirite unit
using a grade interpolant >1% Mn (based on a statistical break in Mn assay data). Resultant
interpolant wireframes were created.
 A high-phosphorous hematite domain was estimated along the hanging-wall of the hematite
unit using a grade interpolant >0.3% P (based on a statistical break in P assay data).
Resultant interpolant wireframes were created.
 Contact surfaces between friable and semi-compact/compact itabirite and hematite
(separate) were created based on the lithological logging codes. Due to the discontinuous
120 / 783
and sporadic nature of the differing lithotypes, separate wireframes for semi-compact and
compact were not created. A division between the two lithotypes was achieved in the block
model by estimating lithotype directly from drillhole intercepts.
 Amphibolite units were created in the footwall, which was otherwise considered as quartzite.
 A contact surface between logged friable and non-friable waste material was created,
inclusive of footwall and hanging-wall lithologies.
Examples of the final estimation domains on cross-sections are shown in Figure 3.44 and Figure 3.45.
The lithotype domains are not shown to maintain clarity of the image. Figure 3.46 shows the itabirite
and hematite domains in 3D.
The quality of the resulting estimation domains was reviewed again using X-10 Geo software. The
domains showed reasonably robust statistical domains had been created, with minor quantities of
internal dilution of low grade material (or contamination of high grade material) from other populations
present. Figure 3.47 and Figure 3.48 show the resultant Fe% distributions within each domain (Zone).
Although friable itabirite samples showed slightly elevated Fe grades compared to the semi-compact
and compact, the domain was not considered adequately continuous or statistically different to define
a separate unit. In order to report the semi-compact or compact resource volumes separately, SRK
UK used a nearest neighbour interpolation of drillhole logging codes. This was done for both itabirite
and hematite lithotypes.
121 / 783
C
Chapter 3 – MINERAL RESOURCE
ES
F
Figure 3.44 – Cro
oss-section 84108
800 showing geo
ological model w ireframes and drillholes
B
BAMIN – PdF Project B
BFS, August 2016
C
ES
F
Figure 3.45 – Cro
oss-section 84112
200 showing geo
ological model w ireframes and drillholes
B
BFS, August 2016
C
ES
F
Figure 3.46 – Itab
birite (green) and
d hematite (pink) wireframes in 3D
D facing northwe
est
B
BFS, August 2016
After validating the estimation domains, they were imported into Datamine Studio 3 for use in block
modelling and grade interpolation. The resultant domains created (also termed Zones) and the
description of the domain codes utilised are shown in Table 3.12.
Table 3.12 – Geological domains and domain codes

Type Description Domain Code
Low-phosphorous hematite 101
Mineralised Units High-phosphorous hematite 102

(for estimation) Low-manganese itabirite 201
High-manganese itabirite 202
Soil 1
Canga 2
Quartzite compact/semi-compact 10
Quartzite friable 11
Waste Units
Schist compact/semi-compact 20
Schist friable 21
Amphibolite footwall compact/semi-compact 30
Amphibolite friable 31
125 / 783
Figure 3.47 – Fe% histogram within modelled domains
Figure 3.48 – Fe% vs SiO2% scatterplot within modelled domains

FE
3.8.4 Comparison of Data Types
The database comprises both DDH and RC data. In order to determine whether the two datasets
could be combined for use in Mineral Resource modelling, several statistical checks were undertaken.
The first stage was to compare the whole dataset, using descriptive statistics and histograms. This
comparison showed a difference between the DDH and RC holes (Table 3.13, Figure 3.49 and Figure
126 / 783
3.50). Only Fe grades have been considered in this comparison.
Table 3.13 – Whole dataset comparison of drillhole types
Minimum Maximum Mean Standard Coefficient of

Drillhole Type Count
(Fe %) (Fe %) (Fe %) Deviation Variation
DDH 7387 0.01 69.9 40.2 18.5 0.46
RC 2994 0.24 69.8 31.3 13.7 0.44
127 / 783
Figure 3.49 – Histogram of whole dataset Fe composites – DDH
FE Histogram
SRT
6 25 gm50 m 75
FE
count 7387
min 0.010
5 max 69.900
mean 40.200
stdev 18.487
skewness 0.13
kurtosis -0.92
4 variance 341.8
CV 0.46
geom mean 34.226
25% 27.815
median 35.100
3 75% 59.100
0
0 10 20 30 40 50 60 70
FE
Figure 3.50 – Histogram of whole dataset Fe composites - RC
FE Histogram
SCR
7 25 gm 50m 75
FE
5 count 2994
min 0.240
max 69.800
mean 31.328
stdev 13.664
4 skewness 0.41
kurtosis 1.03
variance 186.7
CV 0.44
3 geom mean 26.624
25% 25.200
median 30.700
75% 36.000
2
0
0 10 20 30 40 50 60 70
FE
The RC data is clustered in the top part of the deposit, and so comparing the global datasets was not
spatially valid. In order to more accurately determine whether the DDH and RC data were
compatible, a distance limit between the holes of 25 m maximum was used. All DDH holes which fell
within this distance were then compared with the RC holes. This removed biases introduced by the
DDH data intersecting deeper, less weathered material, which could not be reached by the shorter
128 / 783
RC holes.
The comparison between the DDH and RC data within the defined area is illustrated in Table 3.14,
and Figure 3.51 to Figure 3.52.
In SRK UK’s opinion, the distributions of the DDH and RC data are sufficiently similar for the dataset
to be combined. There is a slight bias in the high grade proportion of the curve, but there is no
systematic bias between the two datasets that would require an adjustment to be made. Therefore,
SRK decided to use the RC data in addition to DDH for grade interpolation if the RC holes were not
twins; no twin holes were used in the estimation.
Table 3.14 – Restricted dataset comparison of drillhole types

Drillhole Type Count
(Fe %) (Fe %) (Fe %) Deviation Variation
DDH 1250 0.78 69.78 38.59 14.90 0.39
RC 1090 0.24 69.80 37.58 14.73 0.39
129 / 783
Figure 3.51 – Histogram of restricted dataset Fe composites – DDH
FE Histogram
SRT
25 50 m 75
8 FE
weighted by LENGTH
weights 1250
7 count 338
min 0.780
max 69.780
6 mean 38.590
stdev 14.899
CV 0.39
5 25% 29.900
median 33.774
75% 46.753
4
0
0 10 20 30 40 50 60 70
FE
Figure 3.52 – Histogram of restricted dataset Fe composites – RC
FE Histogram
SCR
8 25 50 m 75
FE
weighted by LENGTH
7 weights 1090
count 1090
min 0.240
6 max 69.800
mean 37.581
stdev 14.733
5 CV 0.39
25% 29.600
median 33.600
4 75% 43.800
0
0 10 20 30 40 50 60 70
FE
130 / 783
Figure 3.53 – QQ plot of DDH versus RC for the restricted dataset

SRT (25) FE (338)
3.8.5 Sample Composites and Statistics
3.8.5.1 Pre-compositing statistics
The statistics for the raw, un-composited assay data are presented for each of the 4 mineralised
units) in Table 3.15. The results show that the domains are reasonably homogenous with generally
low coefficient of variation (CoV: standard deviation/ mean), except for the low-value elements such
as Mn and P.
Table 3.15 – Statistics for the un-composited assay data within modelled domains

Domain Assay
(%) (%) (%) Deviation Variation
Low P hematite Fe (total) 14.34 69.9 65.5 5.6 0.1

Low P hematite SiO2 0.01 62.7 4.0 7.4 1.8
Low P hematite Al2O3 0.11 16.4 1.0 1.0 1.0
Low P hematite P 0.001 1.3 0.1 0.1 1.5
Low P hematite Mn 0.001 10.9 0.2 0.5 2.6
Low P hematite LOI -1.23 11.6 0.7 0.9 1.2
High P hematite Fe (total) 38.59 69.8 65.2 4.4 0.1
High P hematite SiO2 0.01 17.1 1.0 2.4 2.3
High P hematite Al2O3 0.08 14.6 1.6 2.1 1.3
High P hematite P 0.026 4.5 0.8 0.8 1.1
High P hematite Mn 0.001 0.2 0.0 0.0 1.2
High P hematite LOI 0.01 10.3 1.9 1.7 0.9
Low Mn hematite Fe (total) 0.713 68.8 34.2 9.4 0.3
131 / 783
Low Mn hematite SiO2 0.44 84.6 48.2 13.7 0.3

Low Mn hematite Al2O3 0.03 30.0 1.2 1.8 1.5
Low Mn hematite P 0.001 3.8 0.1 0.2 2.8
Low Mn hematite Mn 0.001 24.3 0.2 0.7 3.5
Low Mn hematite LOI -5.4 45.8 0.8 1.7 2.2
High Mn hematite Fe (total) 1.38 68.2 31.8 9.7 0.3
High Mn hematite SiO2 0.96 82.2 45.3 14.4 0.3
High Mn hematite Al2O3 0.09 20.2 1.8 1.8 1.0
High Mn hematite P 0.002 0.8 0.1 0.1 1.1
High Mn hematite Mn 0.005 39.6 3.2 4.8 1.5
High Mn hematite LOI -1.86 22.9 2.0 2.2 1.1
3.8.5.2 Compositing Method
In order to maintain a consistent sample support within the modelled domains, the raw samples were
composited to 5 m intervals. The composite length was chosen to correspond with modal length of the
samples within the database. Of the total assay database, 95% have lengths of 5 m or less.
The composites were determined using the limits of the modelled geological domains, starting from
the first intersection between the drillhole and the geological solid. The last composite within the
geological unit was typically shorter than 5 m. Composite length analysis was used to determine the
impact of removing composites <5 m on the mean grade of the domains. It was found that including
the small composite lengths made negligible difference to the mean grades, and so all composites
were utilised for the grade interpolations regardless of length.
3.8.5.3 Twinned Drillholes
In addition to compositing, it was considered necessary to remove twinned drillholes prior to

estimation to reduce the ‘screen effect’ of clustered samples and reduce negative kriging weights.
Holes within 10 m of each other were compared and the least favourable drillhole deleted (for
example, based on age, number of assays, RC compared diamond drilling). In most cases the RC
holes were deleted, leaving the twin diamond drillhole in the database. Statistical analysis of the
twinned holes indicated that there was a good comparison, and so the RC holes were used for
geological modelling. Removing these holes did not bias the grade interpolation, as the twinned holes
showed excellent grade correlation.
The following drillholes were not used in the estimation: BRS00028SRT, BRS00042SRT,
BRS00020SRT, BRS00222SCR, BRS00217SCR, BRS00221SCR, BRS00215SCR, BRS00208SCR,
BRS00214SCR, BRS00220SCR, BRS00213SCR, BRS00281SGT, BRS00288SGT, BRS00045SRT,
BRS00211SCR, BRS00201SCR.
3.8.5.4 Treatment of High Grades
During validation of the geological domains, it was found that a minor number of high-grade samples
were having a material impact on the grade interpolation; smearing high grades to surrounding
blocks. It was decided to introduce the following grade caps following analysis of histograms and
probability plots:
 3% Mn in Zone 101 (hematite low-phosphorous); and

 1% P in Zone 201 (itabirite low-manganese).
132 / 783
Statistical checks following the grade capping showed that the CoV is reduced significantly and the
block estimates are improved.
3.8.5.5 Post-domaining Statistics
The final estimation drillhole statistics (following compositing, removing twinned drillholes and grade
capping) are shown in Table 3.16. The results are similar to the un-composited statistics, due to the
vast majority of original raw samples being approximately 5 m.
Table 3.16 – Statistics for the 5 m composite assay data within modelled domains

Domain Assay
(%) (%) (%) Deviation Variation
Low P hematite Fetot 36.66 69.87 65.43 4.56 0.1

Low P hematite SiO2 0.01 46.01 4.12 5.99 1.5
Low P hematite Al2O3 0.14 15.10 1.03 0.86 0.8
Low P hematite P 0.001 0.68 0.06 0.08 1.4
Low P hematite Mn 0.001 3.00 0.17 0.37 2.2
Low P hematite LOI -1.23 11.56 0.74 0.82 1.1
High P hematite Fetot 38.59 69.78 65.17 3.95 0.1
High P hematite SiO2 0.01 17.07 1.08 1.95 1.8
High P hematite Al2O3 0.08 14.58 1.66 1.95 1.2
High P hematite P 0.043 3.70 0.78 0.76 1.0
High P hematite Mn 0.001 0.18 0.02 0.03 1.6
High P hematite LOI 0.012 10.30 2.09 1.58 0.8
Low Mn hematite Fetot 4.55 67.44 33.95 8.67 0.3
Low Mn hematite SiO2 0.62 72.21 48.45 12.78 0.3
Low Mn hematite Al2O3 0.07 21.65 1.20 1.50 1.2
Low Mn hematite P 0.001 1.00 0.05 0.10 2.0
Low Mn hematite Mn 0.001 13.65 0.20 0.55 2.7
Low Mn hematite LOI -2.020 38.68 0.83 1.70 2.1
High Mn hematite Fetot 13.17 65.96 31.70 8.40 0.3
High Mn hematite SiO2 1.63 69.72 45.36 12.70 0.3
High Mn hematite Al2O3 0.09 17.67 1.87 1.72 0.9
High Mn hematite P 0.003 0.53 0.08 0.08 1.0
High Mn hematite Mn 0.006 27.10 3.16 3.75 1.2
High Mn hematite LOI -0.640 21.31 2.06 1.85 0.9
3.8.6 Density Determination
In order to estimate the tonnages for each domain, a density variable was included in the block
model. The densities were provided by BAMIN and reflect the mean density values for each
mineralised rock type. SRK UK reviewed the underlying data, and noted some variability with the
density values per lithology. This may be a result of the logging of the lithologies in core, or assigning
the lithotype designation. The density values were coded into the model, using different densities per
lithotype code; the densities assigned are included in Table 3.17. No further density measurements
were made since the 2014 MRE.
It is generally the case that density values show a strong correlation with iron grade in iron deposits.
133 / 783
However, this is not seen in the PdF Deposit because the lithotype characterisation also has a large
impact on density values. SRK UK suggests that further density measurements are made with the aim
of assigning density values using a regression formula to iron grade and improving the tonnage
estimate SRK UK considers that tonnage estimation at a local scale will be an important aspect as the
project develops. SRK UK finds the density measurements and results adequate for the estimation of
the Mineral Resource.
Table 3.17 – Density data per lithotype

3
Lithotype Lithotype Code Density (g/cm )
Hematite – friable HF 2.96
Hematite – semi-compact HS 3.31
Hematite – compact HC 3.84
Itabirite – friable IF 2.28
Itabirite – semi-compact IS 2.63
Itabirite – compact IC 3.05
Itabirite – manganese IM 2.48
Soil SO 1.45
Canga CG 2.22
Quartzite - semi-compact to compact) QT 2.2
Quartzite friable QTF 2.07
Amphibolite - semi-compact to compact) XA 2.58
3.8.7 Geostatistical Analysis
All geostatistical analyses were completed in Snowden Supervisor®. Variography was attempted for
all four domains, and for all variables (Fe, Al2O3, SiO2, P, Mn, and Loss on Ignition (LOI)).
The first stage of the variography was to determine the nugget variance from the down-hole
variograms. Directional variography was then used to determine the ranges for the along-strike
(000⁰), down-dip (40/090⁰), and perpendicular (across-strike) directions (50/270⁰). Examples of the
experimental and modelled variograms are shown in Figure 3.54 and Figure 3.55 for Zone 101 and
201; low-phosphorous hematite and low-manganese itabirite, respectively. All the modelled variogram
parameters are included in Table 3.18. Variograms were modelled with three spherical structures,
with nugget structural components between 5% and 32% of the total variance.
Two domains (Zone 102 and 202; high-phosphorous hematite and high-manganese itabirite)
exhibited poor variograms which could not be modelled due to the relatively low number of samples in
these domains. Ranges from variograms for Zone 101 (for Zone 102) and 201 (for Zone 202) were
therefore utilised and the sills re-scaled to the variance of each domain.
134 / 783
Figure 3.54 – Modelled variograms for Zone 101 (low-phosphorous hematite)
Variogram for FE Variogram for FE

Downhole - 101 - FE >= 60 Direc on 1: 00-->180 - 101 - FE >= 60
1.2 Lag 1.2 Lag
5 100
28450 28089
1.0 21 1.0 20061
508 322 Sph( 0.17, 400 )
369 26649 28774
8270
617 244
Sph(427
0.27, 15 ) 282
0.8 0.8 Sph( 0.33, 115 )
378
0.6 0.6
756 Sph( 0.4, 11 )
Sph( 0.3, 55 )
0.4 0.4
0.2 0.2
N( 0.2 ) N( 0.2 )
0.0 0.0
5 10 15 20 25 30 35 40 45 100 200 300 400 500 600
Sample Separa on (m) Sample Separa on (m)
Direc on 2: -40-->090 - 101 - FE >= 60 Direc on 3: 50-->090 - 101 - FE >= 60
1.2 Lag 1.2 Lag
30 10
1.0 1.0 141

1545 1254
Sph( 0.17, 120 ) 478 388 Sph( 0.17, 60
1023 907 274
0.8 481 Sph( 0.33, 80 ) 0.8 Sph( 0.33,

622 12 )
0.6 0.6 560
Sph( 0.3, 40 ) Sph( 0.3, 11 )

0.4 0.4
0.2 0.2
N( 0.2 ) N( 0.2 )
0.0 0.0
0 20 40 60 80 100 120 0 10 20 30 40 50 60
135 / 783
Figure 3.55 – Modelled variograms for Zone 201 (low-manganese itabirite)

Downhole - 201 Direc on 1: 00-->180 - 201
647
1.2 769 Lag 1.2 Lag
5 120
901
150839
1.0 1.0 82565 81937
Sph( 0.69, 51 )
1035 59468 Sph( 0.22, 95
94713
69234
1336 1180
0.8 0.8
Sph( 0.45, 450 )
1498
32185
1828 1645
0.6 0.6
833
10452
2031
0.4 2483 2238 0.4
Sph( 0.23, 49 ) Sph( 0.25, 130 )
0.2 2779 0.2
N( 0.08 ) N( 0.08 )
0.0 0.0
0 10 20 30 40 50 60 0 200 400 600 800 1000
Direc on 2: -40-->090 - 201 Direc on 3: 50-->090 - 201
Lag Lag
1.0 150 10
Sph( 0.22, 700 ) 1.0 1179
4388 Sph( 0.22,
6879 1420
0.8 0.8
Sph( 0.45, 675 ) Sph( 0.45, 4
1703
0.6 12315
0.6
18239 2094
0.4 2671 0.4
Sph( 0.25, 55 ) Sph( 0.25, 36 )

1098
0.2 0.2
N( 0.08 ) N( 0.08 )
0.0 0.0
0 100 200 300 400 500 600 700 0 10 20 30 40 50
136 / 783
Table 3.18 – Semi-variogram model parameters (all data in untransformed data space)
st nd rd
1 Sill 2 Sill 3 Sill
Nugget
Domain Assay Along-Strike Down-dip Across-strike Along-Strike Down-dip Across-strike Along-Strike Down-dip Across-strike
% Sill Sill Sill
(m) (m) (m) (m) (m) (m) (m) (m) (m)
Fetot 20% 55 40 10 30% 115 80 15 33% 400 120 60 17%
SIO2 30% 105 105 18 57% 790 175 55 13%
Hematite Al2O3 10% 100 50 10 30% 150 100 35 35% 500 400 45 25%
(Zone 101) P 10% 35 45 20 29% 105 120 40 45% 375 365 50 16%
MN 13% 105 215 25 14% 575 225 100 73%
LOI 20% 110 100 25 40% 300 160 55 40%
Fetot 8% 130 55 35 25% 450 675 50 45% 950 700 50 22%
SIO2 8% 150 30 40 22% 380 570 49 42% 900 575 50 28%
Itabirite Al2O3 8% 50 40 20 48% 240 135 95 30% 900 520 100 14%
(Zone 201) P 10% 105 70 40 44% 225 155 80 46%
MN 10% 100 40 25 53% 365 125 50 19% 440 400 90 18%
LOI 8% 60 30 65 28% 265 220 150 24% 1700 440 190 40%

3.8.8 Grade Interpolation
3.8.8.1 Block Model Parameters
A block model was defined around the modelled mineralisation. Grade was estimated into each block
using Ordinary Kriging. The block model definition parameters are shown in Table 3.19. No rotation
was applied to the block model. Sub-blocking was undertaken to improve the volumetric estimates;
however, grade interpolation was undertaken into parent blocks. The smallest sub-blocks created
were half the parent block size in X and Y and 1/15th in Z (10 x 10 x 1 m).
Table 3.19 – Block model definition

Direction Minimum Coordinate Maximum Coordinate Block Size (m) Number of blocks
Easting 764,500 767,500 20 150
Northing 8,408,250 8,416,050 20 390
Elevation 200 1175 15 65
3.8.8.2 Block Model Coding
The block model was coded using the estimation and lithotype domain wireframes imported into
Datamine Studio 3 from Leapfrog Geo. The semi-compact / compact lithotype definition was assigned
using nearest neighbour interpolation of drillhole logging codes, for itabirite and hematite separately.
The block model is shown coded by lithotype in Figure 3.56 and Figure 3.57.
138 / 783
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Figure 3
3.56 – Plan view
v (800 m RL) showin
ng block mo
odel coded by
b lithotypee
Figure 3
3.57 – Cross
s-section (se
ection 8411 200) showin
ng block mo
odel coded b
by lithotype
e
BAMIN – P
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139 / 783
3.8.8.3 Search Neighbourhood Definition
Quantitative Kriging Neighbourhood Analysis was performed on Fe separately for the modelled
domains to optimise the search parameters used for grade interpolation. The optimised search
parameters for Fe were then used to estimate the other variables. In addition to the Quantitative
Kriging Neighbourhood Analysis statistics for each search neighbourhood, the numbers of blocks
estimated in each domain was also recorded to ensure that a significant proportion of blocks in the
modelled domains were filled in the first pass of the search ellipsoid.
Various parameters were iteratively tested, and the resultant Quantitative Kriging Neighbourhood
Analysis statistics analysed. The initial search ellipsoid radii were based on the Fe variography, with
anisotropy ratio parameters which matched the ratio defined by the modelled directional variograms.
The minimum, maximum, and optimum number of composites, along with block discretisation steps
used to estimate the blocks were also tested.
The final search ellipsoid parameters used to estimate all the grade variables in the block model are
summarised in Table 3.20 and shown in Figure 3.58 and Figure 3.59 for hematite and itabirite,
respectively. The block model was estimated in three passes, with each search pass (1,2,3) filling
approximately 68%, 24% and 8% of the global block model, respectively. Figure 3.60 shows the block
model coloured by search volume.
Table 3.20 – Final search parameters by domain

Axis 2 Axis 3
Axis 1 (000⁰) Minimum Maximum Maximum
Search (40/090⁰) (50/270⁰)
Domain samples per
Volume
drillhole
(m) (m) (m) Samples Samples
Hematite 300 150 40
1 5 15 3
Itabirite 550 300 50
Hematite 600 300 80
2 5 15 3
Itabirite 1100 600 100
Hematite 3000 1500 400
3 5 15 3
Itabirite 5500 3000 500
140 / 783
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Figure 3
3.58 – Searc
ch ellipsoid for the hem
matite domains
Figure 3
3.59 – Searc
ch ellipsoid for the itabiirite domain
ns
BAMIN – P
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Figure 3
3.60 – Block oured by se arch volume
k model colo
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3.8.8.4 Block Model Validation
The model was validated using four separate techniques: running Ordinary Kriging and inverse-
distance weighted (IDW) estimates for Fe, statistical validation of block and composite grades, visual
validation of block and composite grades and validation (swath) plots. In general, all domains show
acceptable validation results, with the block model reflecting the input data on both local and global
scales.
Statistical Validation
The first stage of validation was to compare the mean of the estimated blocks with the mean of the
composites used to estimate the blocks. The composite grades are declustered to ensure the
comparison is not influenced by clustering of high-grade values. This validation method can be used
to identify whether any global bias has been introduced during estimation. The comparison for each
PdF domain is given in Table 3.21. Overall, SRK UK considers the statistical validation to be
acceptable, but noted that some differences for the low-grade variables P and Mn exist. The large
discrepancy in Mn grades in Zone 101 is due to the gradational grade change (trend) with depth,
which is obvious on Mn elevation validation plots. When additional data becomes available at depth, it
may be considered appropriate to include a Mn-rich sub-domain in the hematite units.
Table 3.21 – Grade comparison of block model and declustered 5 m composites

Block Mean Composite Mean Absolute
Domain Variable % Difference
Grade (%) Grade (%) Difference
Fetot 65.0 65.4 0.41 0.6%
3
Fetot (IDW ) 64.8 65.4 0.59 0.9%
SIO2 4.2 4.1 -0.05 -1.1%
Hematite
AL2O3 0.9 1.0 0.09 9.2%
Low-Phos
P 0.05 0.06 0.01 15.9%
Mn 0.26 0.17 -0.09 -54.5%
LOI 1.0 0.7 -0.22 -29.1%
Fetot 65.3 65.2 -0.14 -0.2%
3
Fetot (IDW ) 65.4 65.2 -0.19 -0.3%
SIO2 1.1 1.1 -0.01 -0.7%
Hematite
AL2O3 1.6 1.7 0.07 4.1%
High-Phos
P 0.75 0.78 0.02 3.1%
Mn 0.02 0.02 0.00 8.7%
LOI 1.9 2.1 0.18 8.8%
Fetot 31.7 34.0 2.25 6.6%
3
Fetot (IDW ) 31.6 34.0 2.39 7.0%
SIO2 51.6 48.4 -3.15 -6.5%
Itabirite
AL2O3 1.1 1.2 0.11 9.1%
Low-Mang
P 0.04 0.05 0.01 26.2%
Mn 0.2 0.2 0.03 16.4%
LOI 0.8 0.8 0.02 2.3%
Fetot 31.7 31.7 -0.01 0.0%
3
Fetot (IDW ) 31.2 31.7 0.49 1.5%
SIO2 45.2 45.4 0.13 0.3%
Itabirite
AL2O3 1.8 1.9 0.04 2.3%
High-Mang
P 0.08 0.08 0.00 4.4%
Mn 3.3 3.2 -0.13 -4.1%
LOI 2.2 2.1 0.41 0.6%
143 / 783
Figure 3.61 shows the comparative histograms of block model and composite grades for each
estimation domain, for both Ordinary Kriging and IDW3 Fe grades. The histograms show that the
block model grades in general show a de-skewing of the composite data, which is expected of the
interpolation methodology. The Ordinary Kriging and IDW3 estimated Fe grade distributions are
similar and demonstrate an acceptable level of smoothing by Ordinary Kriging, where over-estimation
of low grade volumes and under-estimation of high-grade volumes is as expected.
144 / 783
Figure 3.61 – Histograms of block (estmod) and composite (dhest) grades for Fe (OK) and Fe (IDW3) for each Domain/Zone


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Visu
ual Validation
n
SRK UK K visually va alidated the models thro ough comparrison on 2D plan and seection views s and 3D
views. T
The estimate ed block mod del grades a re locally sim
milar to the composite
c grrades. Figure
e 3.62 to
Figure 3
3.65 illustrate
e the correlattion between
n block and composite
c Fe
e, Mn and P ggrades.
Figure 3
3.62 – Section illustratting visual v
validation of
o block mo
odel and co
omposite sa
ample Fe
grade (S
Section 8411000)
BAMIN – P
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Figure 3
validation of
o block mo
odel and co
omposite sa
ample Fe
grade (S
Section 8410600)
Figure 3
validation of
o block model and com
mposite sam
mple Mn
grade (S
Section 8411200)
BAMIN – P
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3.65 – Secttion illustratting visual validation of

Figure 3 o block mo
odel and co
omposite sa
ample P
grade (S
Section 8411800)
dation (Swatth) Plots

Valid
As part of the validation proces ss, the estimmated block model grade es were alsoo compared with the
composite grades within
w defined
d sectional crriteria. The results
r were displayed onn graphs to check
c for
visual discrepanciess between grrades along the defined coordinate lines. The eexpected outcome of
the Ordinary Kriging g estimation process is to observe a relative sm moothing of block mode el grades
around the composite values. Validation
V (sswath) plots were constructed for e ach of the modelled
m
domainss, and were calculated forf sections cut in the X, X Y and Z directions.
d Noorthing (Y) validation
v
wn in Figure 3.66.
plots forr Fe are show
Due to the large search s ellips

soids, the ssmoothing efffect is especially notabble on the Northing
validatio
on plot, in the e direction with
w the longe y. Globally, the block moodel average grade is
est continuity
relativelyy similar to th
hat of the declustered inpput data, indicating that no
n biases havve been intro
oduced.
BAMIN – P
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149 / 783
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Figure 3
3.66 – North
hing validation plots forr Fe (%) for each
e Zone
Valid
dation Concllusions
The model was validated using four separa ate techniquees, namely statistical
s vaalidation of block
b and
composite grades, visual
v validattion of blockk and compo osite grades,, validation pplots, and coomparing
the Ordinary Kriging g estimates too IDW estimmates. In gen neral, all dom
mains show aacceptable validation
v
results, w
with the blocck model refle
ecting the inpput data on both
b local annd global scaales.
SRK UK K considers the estimatio on of the mo odelled domains to be ro

obust and thhe results ha
ave been
verified tto an accepttable degree of confidencce.
3.8.9 Resource Classifica

ation
A combiination of facctors were used to class ify the block model. These include ggeological complexity,
quantity and quality of the data, including QA
AQC, results of the geosttatistical anallyses, and th
he quality
of the block model estimates, as indicated byy the model validation.
v
The dep posit is a larg

ge continuous body of ita
abirite grading g to a massive hematite unit in the upper part
of the deeposit. There e are no kno
own large sccale structurees (faults, shears, etc.) w
within the dep
posit and
the strikke and dip of the bedd ding is relativvely consisttent through the length of the depo osit. The
domainss used for estimation
e weere based o on the geoloogical model wireframes created in Leapfrog
BAMIN – P
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150 / 783
Geo. The domain of the hematite unit show average thickness of 42 m and, extends over 2.6 km
along strike; the principle itabirite unit, which is up to 100 m in thickness, and extends for the total
strike length of the deposit, and the high-Mn itabirite and high-P hematite units, which are laterally
discontinuous and generally thin (<20 m).
The assay data used for the grade interpolation has been subjected to an extensive QAQC
programme, which is considered to be industry best practice, as discussed in Section 3.7. A density
sampling and analysis programme has also been undertaken. SRK UK considers both the assay and
density data to be of sufficient quality for use in a MRE, however, notes that further density
measurements are recommended.
Grade has been estimated using Ordinary Kriging, using robust variograms for the two primary
domains, and re-scaled variograms for the two smaller domains. The variography allowed the
determination of reasonable search distances to be tested using Quantitative Kriging Neighbourhood
Analysis. The resultant block model estimates were validated using statistical checks, visual checks
and sectional validation slices. The block model is considered to reflect the input data on both local
and global scales.
The deposit has been classified as containing Measured, Indicated and Inferred Mineral Resources,
in accordance with the JORC Code 2012. Measured and Indicated Mineral Resources were defined in
blocks which are informed by drillholes within the first search ellipsoid and which have a slope of
regression of greater than 0.5. These areas were defined using classification wireframes which were
used to code the block model. The distinction between Measured and Indicated Mineral Resources is
mainly based on the drillhole spacing; in areas where there has been limited infill drilling, the
mineralisation is classified as Indicated. The Measured Mineral Resource generally extends to a
depth of 300 m below surface, with the Indicated Mineral Resource extending a further 200 to 300 m
below the classified Measured Resources and further where drilling was conducted in 2015. All
remaining blocks within the mineralised domains were classified as Inferred Mineral Resources.
Two areas have currently been left unclassified:
 Drilling in the southern area shows that the itabirite unit is open along strike, therefore
classification has been extended to one drilling gate spacing along strike from the last
drilling gate, but left unclassified past this point. Further drilling along strike will allow for the
mineralisation to be closed along-strike.
 Block model at depth in the north of the deposit inside licence 870166/1984. If this licence is
approved, then the blocks in this area, which would likely be classified as Inferred Mineral
Resources may be reported.
The block model coloured by classification category is shown in Figure 3.67.
151 / 783
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Figure 3
3.67 – Block
k model colloured by M
Mineral Reso
ource classification cattegory and drillhole
databasse (black)
3.8.10 Reasonab
ble Prospe
ects for Eve
entual Economic Extrraction
In orderr for the mod

delled tonnag
ge and grad e estimates to be reportted as a Minneral Resourrce, SRK
UK has undertaken n a series off tests to en asonable proospects for eventual
nsure that there are rea
economic extraction, as defined by the JORC C Code.
The terrm ‘reasonab ble prospeccts for even ntual econom mic extractio on’ implies a judgemen nt (albeit
preliminaary) by the Competent Person in rrespect of the technicall and econoomic factors likely to
influencee the prospeect of econommic extractio
on, including the approxim mate mining parameters. In other
words, a Mineral Re esource is no
ot an inventoory of all mineralisation drilled or saampled, rega ardless of
cut-off g
grade, likely mining
m dimennsions locatioon or continu ealistic invenntory of mineralisation
uity. It is a re
which, uunder assum med and justiifiable techn ical and ecoonomic conditions, mightt, in whole or o in part,
become economically extractable e.
SRK UK K has unde ertaken a pit optimisatio on exercise to determine the deptth to which h Mineral
Resourcces can be defined. Pit optimisation
o ssoftware (such as NPV Scheduler
S orr Whittle) req
quires the
provision
n of reasona
able processsing and min ning cost parameters in addition to aappropriate pit slope
angles, processing recoveries
r an
nd selling pri ce.
The para
ameters useed were the most
m ate paramete
up-to-da ers provided by BAMIN, and are pres sented in
Appendiix 3.1 – Min
neral Resourrce Estimate e. They are the same as those thatt have been used to
generate
e an Ore Reeserve. Two separate mi neral processsing streams are requireed for the high-grade
hematite
e and processsing plant fe
eed.
BAMIN – P
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152 / 783
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The onlyy difference to

t the Ore Reserve pit op ptimisation parameters
p is
s the selling price, which is based
on a 3 30% mark up u on the Ore Reservve price (10 06 USc/dmtu u), which reesults in a price of
138 UScc/dmtu. SRK K UK consideers this to bee a reasonab stic, price to apply. This price
ble, if optimis p has
been chhecked again nst the 3 yea
ar trailing ave
erage, and iss only slightlyy higher in ccomparison. The only
other diffference to the
t Ore Resserve pit opttimisation an nalysis is tha at material cclassified as
s Inferred
Mineral Resources, in addition to
t Measured d and Indicatted material, is included in the econo omic test
here.
The resu
ultant open pit
p shell used
d by SRK UK
K to report the
e Mineral Re
esource is shhown in Figurre 3.68.
Figure 3
3.68 – Open pit shell us
sed to report esource (purple)
rt Mineral Re
3.8.11 Mineral Resource

R S
Statement
The Minneral Resourcce statementt for the PdF F Deposit as at 31 Decemmber 2015 haas been estim mated by
SRK UK K and is classsified in acco
ordance withh the terms and
a definitions as includeed in the JOR RC Code.
The Minneral Resourrce statemen nt amounts tto 931 Mt grrading at 39.9% Fe, 39.77% SiO2, 1.1% Al2O3,
0.05% PP, 0.30% Mn and 0.9% LOI. L hown in Tablle 3.22 by cllassification category
The stattement is sh
and Tabble 3.23 by classification
c category an
nd lithotype. The JORC Code
C Table 1 has been prepared
and is presented in Appendix
A 3.1
1 – Mineral R
Resource Esttimate.
SRK UK
K notes the fo
ollowing:
 This Minerral Resource statement h

has been con
nstrained using an open ppit shell base
ed on the
BAMIN – P
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153 / 783
economic, processing and mining parameters available to SRK UK at the end of 2015. All
material within the pit in the model as undiluted tonnage and grade has been reported, with
no mining recoveries or cut-off grades applied (other than for wireframe modelling).
 The Mineral Resource statement has been derived from those mineral rights licence areas
that are attributable to BAMIN as at 31 December 2015, namely 870830/2004,
870283/2005, 811466/1973, 292/1958, and 5247/1958. The report does not include the
portion lying within the boundary of licence 870166/1984, which has not yet been secured
by BAMIN (equating to approximately 50 Mt of material).
 The material defined as “hematite” reflects all blocks from within the modelled hematite
domains. This includes compact, semi-compact and friable hematite (the high-phosphorous
estimation domain falls within the compact hematite material).
 The material defined as “itabirite” includes all blocks from within the modelled itabirite
domains. This includes compact, semi-compact, friable and manganese-rich itabirite.
 The Mineral Resource statement is reported below a topographic surface, dated 3
December 2015.
 Density values used were from dry bulk density measurements from diamond drill core. The
tonnages quoted are therefore considered as dry tonnages (no moisture content taken into
account).
 Tonnages are reported in metric units and grades in percent. Tonnages are rounded to the
nearest thousand tonnes and grades are rounded to one or two decimal places as
appropriate. Rounding as required by reporting guidelines may result in apparent summation
differences between tonnes, grade and contained metal content.
Table 3.22 – PdF Mineral Resource statement, 31 December 2015

Tonnage Fe SiO2 Al2O3 P Mn LOI
Mineral Resource Category Material
(Mt) (%) (%) (%) (%) (%) (%)
Hematite 78 65.4 4.0 1.1 0.11 0.14 0.8
Measured Itabirite 220 33.6 48.7 1.2 0.05 0.41 0.8
Subtotal 298 41.9 37.1 1.2 0.07 0.34 0.8
Hematite 113 65.5 4.0 0.8 0.05 0.33 0.7
Indicated Itabirite 299 31.2 52.1 1.1 0.03 0.32 0.8
Subtotal 412 40.6 38.9 1.0 0.04 0.32 0.8
Hematite 191 65.5 4.0 0.9 0.07 0.26 0.7
Measured and Indicated Itabirite 519 32.2 50.7 1.1 0.04 0.36 0.8
Total 710 41.2 38.1 1.1 0.05 0.33 0.8
Hematite 39 63.0 4.3 1.0 0.07 0.28 2.3
Inferred Itabirite 182 30.2 53.6 1.0 0.03 0.17 0.9
Subtotal 221 36.0 44.9 1.0 0.04 0.19 1.1
Hematite 230 65.1 4.0 0.9 0.07 0.26 1.0
Total M, I, & I Itabirite 701 31.7 51.4 1.1 0.04 0.31 0.8
Total 931 39.9 39.7 1.1 0.05 0.30 0.9
154 / 783
Table 3.23 – PdF Mineral Resource statement by lithotype

Category Material Lithotype
(Mt) % % % % % %
Friable 58 65.4 4.3 1.0 0.06 0.1 0.6
Semi-Compact 10 65.4 3.5 1.1 0.19 0.2 1.0
Hematite
Compact 9 65.7 2.1 1.5 0.35 0.1 1.4
Sub-total 78 65.4 4.0 1.1 0.11 0.1 0.8
Friable 78 38.0 43.3 1.2 0.07 0.1 0.8
Measured
Semi-Compact 63 32.0 51.3 1.2 0.0 0.2 0.7
Itabirite Compact 65 30.5 53.4 1.2 0.0 0.2 0.7
High Manganese 15 31.5 45.8 1.9 0.1 3.3 2.1
Sub-total 220 33.6 48.7 1.2 0.05 0.4 0.8
Measured Subtotal 298 41.9 37.1 1.2 0.07 0.3 0.8
Friable 97 65.5 4.0 0.8 0.04 0.3 0.7
Semi-Compact 9 65.6 4.1 0.9 0.05 0.2 0.7
Hematite
Compact 8 65.7 3.7 0.8 0.06 0.2 0.9
Sub-total 113 65.5 4.0 0.8 0.05 0.3 0.7
Friable 62 34.2 48.6 1.1 0.04 0.1 0.8
Indicated
Semi-Compact 71 31.3 52.1 1.1 0.0 0.2 0.8
High Manganese 11 29.3 46.7 1.9 0.1 4.8 2.4
Sub-total 299 31.2 52.1 1.1 0.03 0.3 0.8
Indicated Subtotal 412 40.6 38.9 1.0 0.04 0.3 0.8
Friable 155 65.5 4.1 0.9 0.05 0.3 0.7
Semi-Compact 19 65.5 3.7 1.0 0.13 0.2 0.8
Hematite
Compact 17 65.7 2.9 1.2 0.22 0.1 1.2
Sub-total 191 65.5 4.0 0.9 0.07 0.3 0.7
Measured and Friable 140 36.3 45.7 1.2 0.05 0.1 0.8
Indicated Semi-Compact 134 31.6 51.7 1.1 0.03 0.2 0.7
High Manganese 26 30.6 46.2 1.9 0.07 3.9 2.2
Sub-total 519 32.2 50.7 1.1 0.04 0.4 0.8
Meas+Ind Subtotal 710 41.2 38.1 1.1 0.05 0.3 0.8
Friable 34 63.2 4.4 1.0 0.07 0.3 2.1
Semi-Compact 0.4 66.4 2.8 0.9 0.07 0.2 0.9
Hematite
Compact 4 61.8 3.3 0.9 0.08 0.4 3.7
Sub-total 39 63.0 4.3 1.0 0.07 0.3 2.3
Friable 4 33.2 48.9 1.1 0.03 0.1 1.1
Inferred
Semi-Compact 35 31.1 51.5 1.1 0.03 0.2 1.3
High Manganese 0.3 26.5 56.1 1.2 0.05 1.9 1.3
Sub-total 182 30.2 53.6 1.0 0.03 0.2 0.9
Inferred Subtotal 221 36.0 44.9 1.0 0.04 0.2 1.1
Friable 190 65.1 4.2 0.9 0.05 0.3 0.9
Semi-Compact 19 65.5 3.7 1.0 0.13 0.2 0.8
Hematite
Compact 21 64.9 3.0 1.1 0.19 0.2 1.7
Sub-total 230 65.1 4.0 0.9 0.07 0.3 1.0
Total M, I, & I Friable 144 36.2 45.8 1.1 0.05 0.1 0.8
Mineral
Resource Semi-Compact 169 31.5 51.7 1.1 0.03 0.2 0.9
High Manganese 27 30.5 46.3 1.9 0.07 3.9 2.2
Sub-total 701 31.7 51.4 1.1 0.04 0.31 0.8
All M, I, & I Total 931 39.9 39.7 1.1 0.05 0.30 0.9
155 / 783
AL RESOUR
RCES
3.8.11
1.1 Gra
ade-Tonnage
e Curves
The Min neral Resourrce statemen nt presentedd in Table 4.26

4 is sensitive to the sselection of a cut-off
grade. A breakdown n of the tonnage and g grade for all classified blocks, hemaatite blocks only and
itabirite blocks only are represennted graphiccally as grade
e-tonnage cu urves in Figuure 3.69, Fig
gure 3.70
and Figu ure 3.71, respectively.
Figure 3
3.69 – Fe gra
ade-tonnage
e curve for a
all classified
d blocks witthin pit
Figure 3
3.70 – Fe gra
ade-tonnage
e curve for a
all classified
d hematite blocks
b withiin pit
BAMIN – P
PdF Project BFS
S, August 2016
156 / 783
AL RESOUR
RCES
Figure 3
3.71 – Fe gra
ade-tonnage
e curve for a
all classified
d itabirite bllocks within
n pit
3.9 CONC
CLUSIO
ONS
The Min
neral Resourcce statementt for the PdFF Deposit, as s at 31 Decem
mber 2015, hhas been rep
ported by
SRK UKK in accordan
nce with the terms
t and deefinitions of the
t JORC Co ode.
The upddated Mineraal Resource statement fo or the PdF Deposit,

D as presented in Table 3.24, amounts
Mt grading at 39.9% Fe, 39.7%
to 931 M 3 SiO2, 1.1% Al2O3, 0.05% P, 0.3 30% Mn andd 0.9% LOI. Globally,
the block model average grade is relatively ssimilar to tha ustered inpu t data, indica
at of the declu ating that
no biase
es have beenn introduced..
ummarised Mineral Res

Table 3..24 – PdF Su source state
ement, 31 December 20015
Mineral R
Resource Categ
gory
(Mt) (%) (%) (%
%) (%) (%) (%)
Measured
d and Indicated
d
Hematite 191 65.5 4.0 0.9
0 0.077 0.3 0.7
Itabirite 519 32.2 50.7 1.1 0.044 0.4 0.8
Total 710 41.2 38.1 1.1 0.055 0.33 0.8
Inferred
Hematite 39 63.0 4.3 1.0 0.077 0.3 2.3
Itabirite 182 30.2 53.6 1.0 0.033 0.2 0.9
Total 221 36.0 44.9 1.0 0.044 0.2 1.1
Note: the ffull Mineral Ressource statemen
nt is presented iin Table 3.22and Table 3.23
Extensivve work hass been unde ertaken since e 2006. SR RK UK has foundf the exxploration programs,
assaying g, quality con
ntrol and datta interpretattion to be off a high stand
dard. The 20015 Model iss suitable
e of mine pla n presented in this BFS.
for and fforms the basis of the life
BAMIN – P
PdF Project BFS
S, August 2016
157 / 783

2.3 Chapter 3 - Mineral - Resources

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2.3 Chapter 3 - Mineral - Resources

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Chapterr 3 – MINERA

3.2 MINERAL RIG

The CSF exhibits tw wo large areas of crysta lline baseme

The Saoo Francisco Basin is the most elonga

outh-east of the State of Bahia, lithollogies include rocks from

These litthologies we ed by extensiive detrital ro

3.3.1 Local Geology and Mapping Program

3.3.2 Deposit Geology

A 1:5,000 scale geologic map is shown in Figure 3.2.

BAMIN – PdF Project BFS, August 2016

Ferruginous laterite/canga and/or eluvium-colluvium deposits of hematite and itabirite have

BAMIN – PdF Project BFS, August 2016

3.3 – Cross--section TR--10.900, reprresenting th

The ironn mineralogyy is predominnantly hemattite/ specularrite; with mag

The Fe content of the itabirite averages

The perccentage distrribution of the lithotypes in the PdF Mineral

Detrital fferruginous laterite

Planar sstructures (ssuch as bedding, foliatio

eing printed on the plane of the folia

The line asured at 44 locations in

3.4.1 Topographic Surveyy

Fieldworrk began on November 17, 2005, th

BAMIN – PdF Project BFS, August 2016

This data aided regional mapping and later detailed mapping.

BAMIN – PdF Project BFS, August 2016

Figure 3.8 – Reg gional geolo ogical map

3.4.3 Opening and Profiling of Trenches

The outcomes included:

3.4.4 Detailed Geological Mapping

BAMIN – PdF Project BFS, August 2016

seen in Figure 3.2.

The ironn formation outcrops

Table 3.1 – BAMIN drilling campaign data from 2006 to 2015

Sub-Total 126 22,075.0 3,811

Sub-Total 109 18,024.5 3,724

Sub-Total 8 3,082.6 101

Sub-Total 21 3,423.5 353

Total 374 61,555.1 10,009

BAMIN – PdF Project BFS, August 2016

Table 3.2 – Average recovery rates of drilling campaigns

Diamond core SRT 45 89

Diamond core SRT 100 96

Geotechnical (core) SGT 3 96

Diamond core SRT 26 64

Geotechnical (core) SGT 38 92

Reverse circulation SCR 31 90

Diamond core SRT 3 44

Diamond core SRT 6 94

Large diameter SLD 7 -

Diamond core SRT 47 89

Diamond core SRT 11 94

3.5.1 Drilling Database

BAMIN – PdF Project BFS, August 2016

The drilllhole hardco opy filing sys

0 m in 2013, thus enablinng high confiidence in

Whenevver possible during the ro otary exploraation drilling campaign, drillholes

3.5.2.1 2006 Campaign

3.5.2.2 2007 Campaign

3.5.2.3 2008 Campaign

BAMIN – PdF Project BFS, August 2016

3.5.2.4 2009 Campaign

3.5.2.5 2010 Campaign