Name and Location
Urucum North underground mine project, Brazil.

Client
Beadell Resources.

Project Description
The Urucum North project forms part of the 100%-owned Tucano gold mine, in north-eastern Brazil, and is the only deposit on the Tucano mining lease that has been targeted for an underground resource.

A prefeasibility study (PFS) is based on an underground probable ore reserve of 2.97-million tonnes, grading 3.61 g/t of gold.

The project could recover about 310 000 oz of gold over a mine life of seven to eight years.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $48-million and an internal rate of return of 30%, with a payback of four years.

Value
Preproduction capital is estimated at $18.1-million.

Duration
Not stated.

Latest Developments
Beadell believes there is good potential to further expand the Urucum mineral resource close to areas of capital development contemplated by the PFS. Several of these target areas will be tested during the 2016 drilling campaign.

Future deeper drilling will be aimed at upgrading the inferred mineral resources to measured and indicated mineral resources and ultimately conversion to ore reserves, as well as continuing to explore mineralisation at depth.

The 2015 year-end resource/reserve statement for the Tucano project is expected to be released in due course.

Following this, Beadell will complete a revised life-of-mine plan for Tucano, based on optimisations that are aimed at maximising cash flow and profit, rather than gold production and throughput. The results of these optimisations will shape the openpit mine plan going forward at Tucano, which, in turn, will drive the timing of the next steps in scheduling the potential development of Urucum.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Beadell Resources, tel +61 8 9429 0800, fax +61 8 9481 3176 or email info@beadellresources.com.au.