Amazon Basin Gold Property

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This property is located south of the city of Manaus and encompasses approximately 1,370,368 hectares of 164 processos minerals (claims) in the states of Amazonas, Mato Grosso and Rondonia. It is centered between the Tapajos River on the east and the Mardeira River to the west in an area of extensive mining. There is an international airport at Manaus and highway access to the property is southbound to Humaita and then eastbound on the Transamazonia Highway using a complex system of secondary or tertiary gravel roads. The more remote portions of the property are accessible by local river transportation.

These mineral tenures have been grouped into nine projects according to their geographical location and geologic setting:

Amazonas State
These tenures -- Manicore, Aripuana and Curauai -- are located in the southeastern portion of Amazonas and comprise 35 mineral claims and encompass 338,262 hectares. The primary exploration targets are for gold with some diamond targets.

Mato Grosso State
The Madeirinha, Juruena, Matupa and Jatoba projects are located in the northern and southeaster portion of Mato Grosso and comprise 63 mineral claims comprising 512,641 hectares. The primary exploration targets are for gold except for the Jatoba project which was acquired for diamond exploration.

Rondonia State
Two projects -- the Cacoal and Theobrama projects -- are located in the east-central portion of the State. Comprised of 18 mineral claims over 49,364 hectares, the principal exploration targets are gold, diamonds, tin and copper.

Complete details on each of these Projects are available in the Technical Report posted above.

Climate & Topography

At only 6 degrees south of the Equator the climate is typically tropical with little mean yearly temperature changes. The area has two seasons, the rainy summer running from November through March and a dry winter. The prevailing vegetation is overgrown, tropical, slash and burn savannas consisting of dense jungle patches interspersed with open grassy fields.

The property is location primarily along the southern edge of the Amazon Basin and elevations range from 75 to 375 metres above sea level. The general area is one of gently rolling hills and the occasional steep valley and ravine. Most of the old growth jungle on our mineral claims was previously logged for the advancement of ranching, and logging remains a local, viable industry.


Most of the concessions, which lie within the Brazilian Shield, have been staked over Archaen to Lower Proterozoic greenstone belts as reported in the N.I. 43-101 Technical Report, which are considered to be prospective for gold. Small-scale garimpeiros (artisanal miners) are active in and around all of the concession areas. Gold production by garimpeiros in northern Mato Grosso from the end of the 1970s to 2000 is reported by the National Department of Mineral Production to have totalled 123t.

Historical Gold Production

The northern portion of the property lies within the western extension of the Tapajpos River Gold Belt, immediately west of historic gold production where gold was first documented in 1747. Gold production peaked during 1983-89 when more than 300,000 garimpeiros working alluvial deposits produced one million ounces per year. During the 1970s and 1980s the region produced between 30-40% of Brazil's total gold output. Data up to 1993 is officially estimated at 7 million ounces of gold although other estimates place it at anywhere between 22 and 30 million ounces.

Several mining companies are actively exploring the Amazonas region and developing properties, including Eldorado do Juma, Ouro Roxo (Amerix Precious Metals Corp), Crepori (Brazauro Resources Corp) and Serra Pelada (Colossus Minerals Inc.).

Armadillo's property covers known areas of garimpeiro operations which range from prospecting pits to large scale excavations and, throughout Brazil, many of these garimpeiro operations have transitioned from pits into significant deposits.

2011 Work Program

Minimal exploration has been carried out to date on the property although soil and saprolite surveys were carried by the previous owner in 2007.

In the October 2010 Technical Report prepared by David Reid and William Gilmour of Discovery Consultants, a two phase program of exploration was recommended. A Phase One program budgeted at $1,860,000 includes researching and evaluating the mineral licences controlled by Amazonia and although the emphasis is on gold exploration there is potential for base metals as well.

Armadillo Regional Manager Andre Klumb is presently in Brazil and has commenced work on a recommended exploration program which will be reviewed by Management.

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This page was created on Sun Feb 28, 2021 at 4:39:32 AM Pacific Time.