Tucano Gold Intersected 48m @ 11.62 g/t Au, 60m Underneath Duckhead Pit Floor

FVM560 was one of the last holes drilled at the super high grade Duckhead mine in August 2016, 60 metres below the current open pit floor.

Duckhead mineralisation below the pit

Finding these super high grade 1-2 ounce per tonne deposits is rare and while we have 2,000 sqkm of highly prospective Guiana Shield tenements surrounding us, the first place to start looking is underneath the pit. We have included some of the old ASX releases to illustrate why Duckhead was the highest grading gold mine at the time and why we think it adds so much potential to the future of Tucano Gold.

See here for the full Beadell press release from 11 April 2014

FVM351 which intersected 31m @ 491 g/t must be up there as one of the better holes in the industry and was about 80 metres above FVM560 before it was mined in 2016. What is really important is that Duckhead is not a nuggety mine which is usually what gives flashy drill holes those exaggerated results.  

Beadell wrote: “Even though the mineralisation at Duckhead is extremely high grade, it is not a nuggety orebody and in general the extreme high grades have been consistently validated in the mining and milling reconciliations. The 14,018.6 g/t (1.4 %) gold result in FVM351 repeated at a certified off site laboratory at 17,025.6 g/t (1.7%) gold, further adding to the validity of this result. Additionally, the further 30 m of the intercept excluding the 14,018.6 g/t gold result averaged 39.9 g/t gold.”

The picture below shows you where Duckhead is situated amongst our 8 open pit mines and is a 12km truck to our world class 3.5Mtpa mill.

Mina Tucano’s 14km gold system

When gold production resumes we will prepare a 5,000 metre drill programme at Duckhead. This is long overdue and we want to follow up the excellent work carried out by Beadell.

We take our hat off to the early Beadell Resources management team. They were the risk takers amongst the different owners of Mina Tucano when they spent over $300 million building a world class 3.5Mtpa mill between 2012-19. Unfortunately their timing wasn’t great as production started in 2013 just as gold was entering a long and painful bear market. We are in an excellent position to take advantage of this new bull market in gold with all of Beadell’s amazing infrastructure.

See here for the full Beadell press release from 30 April 2013

Great Panther’s big accomplishment when they took over from Beadell was completing the 474 diamond drill hole programme at our Urucum underground Complex. Over $40m was spent by both operators defining an underground reserve of 166koz @ 4.85 g/t and Underground Resource of 748koz @ 5.17 g/t. 

This calculation was based on $1,650 gold and only tested 5% of the strike potential that runs 14km all the way back to Duckhead. The deepest hole drilled was 621 metres and the mineralisation is open at depth both north and south. Duckhead had a fraction of the holes and they were all very shallow. Watch this short video on Linkedin to give you an idea of the scale of our operation.

Investor Trip meeting Mr Davi and his team at our world class Laboratory

If you want a comparison for our C$35 million pre-money valuation of Tucano Gold –  Eike Batista sold Mina Tucano to Goldcorp for nearly $300 million in 2006 when it was still just a basic heap leach operation. Then Beadell Resources and Great Panther spent over $400 million between 2012-22 building our 3.5Mtpa mill, world class laboratory, staff accomodation for 200 and our own airport. This is the beauty of buying big assets like this very cheaply, because it gives new investors an opportunity to join at a basement valuation. 

Duckhead open pit September 2016 – Last month of mining @ 59 g/t

We think our acquisition of Mina Tucano is arguably the best in the industry since K92’s purchase of Kainantu Gold mine in 2014. We funded most of K92 when it was still private and think Mina Tucano has a lot of similarities in terms of the resource and grade potential. The one big difference is our $C35 million pre money valuation compares to their current market of $C1.9 billion.

Our 80 cent round also compares with $C15-18 just to cover the cost to build our mill and an estimated possible NPV of  $C34 a share assuming gold trades at $2,200 medium term and $1,800 long term.

See here for the full Beadell press release from 8 January 2015

Tucano Gold has a very exciting future with scope to achieve 150,000+ ounces as production ramps up and world class deposits like Duckhead are given another chance to shine in a rising gold market.

Regards,

Jeremy Gray | CEO

Jeremy.Gray@TucanoGold.com

Charles Chebry | President

Charles.Chebry@TucanoGold.com

Edward Balme | Head of IR
Edward.Balme@TucanoGold.com