Amended Technical Report on the São Francisco Mine, Brazil

Scott Wilson Mining
AURA MINERAL INC.
AMENDED AND RESTATED TECHNICAL REPORT ON THE SO FRANCISCO MINE, MATO GROSSO STATE, BRAZIL
NI 43-101 Report Authors: Chester M. Moore, P.Eng. Normand L. Lecuyer, P.Eng.
May 20, 2009 Readdressed June 17, 2009 Amended July 27, 2009
SCOTT WILSON ROSCOE POSTLE ASSOCIATES INC.
SCOTT WILSON RPA
www.scottwilson.com
TABLE OF CONTENTS
PAGE 1 SUMMARY.................................................................................................................. 1-1 Executive Summary ................................................................................................... 1-1 Economic Analysis .................................................................................................... 1-7 Technical Summary ................................................................................................. 1-12 2 INTRODUCTION ........................................................................................................ 2-1 3 RELIANCE ON OTHER EXPERTS ........................................................................... 3-1 4 PROPERTY DESCRIPTION AND LOCATION ........................................................ 4-1 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY........................................................................................................... 5-1 6 HISTORY ..................................................................................................................... 6-1 7 GEOLOGICAL SETTING ........................................................................................... 7-1 Regional Geology ...................................................................................................... 7-1 Local Geology............................................................................................................ 7-3 8 DEPOSIT TYPES......................................................................................................... 8-1 9 MINERALIZATION .................................................................................................... 9-1 10 EXPLORATION....................................................................................................... 10-1 11 DRILLING................................................................................................................ 11-1 12 SAMPLING METHOD AND APPROACH ............................................................ 12-1 13 SAMPLE PREPARATION, ANALYSES AND SECURITY ................................. 13-1 Sample Security ....................................................................................................... 13-5 14 DATA VERIFICATION .......................................................................................... 14-1 15 ADJACENT PROPERTIES ..................................................................................... 15-1 16 MINERAL PROCESSING AND METALLURGICAL TESTING......................... 16-1 Metallurgical Testing ............................................................................................... 16-5 Plant Production....................................................................................................... 16-5 17 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES.................... 17-1 Mineral Resources ................................................................................................... 17-1 Geological Interpretation ......................................................................................... 17-4 Assay Composites.................................................................................................... 17-5 Grade Capping ......................................................................................................... 17-5 Mineral Reserves ................................................................................................... 17-21 18 OTHER RELEVANT DATA AND INFORMATION ............................................ 18-1
Aura Minerals Inc. So Francisco Mine, Technical Report NI 43-101 Dated May 20, 2009; readdressed June 17, 2009, amended July 27, 2009
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19 ADDITIONAL REQUIREMENTS.......................................................................... 19-1 Mining Operations ................................................................................................... 19-1 Markets .................................................................................................................. 19-12 Contracts ................................................................................................................ 19-12 Environmental Considerations............................................................................... 19-13 Taxes ...................................................................................................................... 19-14 Capital and Operating Cost Estimates ................................................................... 19-14 Manpower .............................................................................................................. 19-17 Economic Analysis ................................................................................................ 19-18 20 INTERPRETATION AND CONCLUSIONS.......................................................... 20-1 Exploration............................................................................................................... 20-1 Geology and Mineral Resources.............................................................................. 20-1 Mineral Reserves and Life of Mine Plan ................................................................. 20-2 Mineral Processing................................................................................................... 20-3 Capital and Operating Costs .................................................................................... 20-3 Economic Analysis .................................................................................................. 20-4 21 RECOMMENDATIONS.......................................................................................... 21-1 22 REFERENCES ......................................................................................................... 22-1 23 DATE AND SIGNATURE PAGE ........................................................................... 23-1 24 CERTIFICATE OF QUALIFIED PERSON ............................................................ 24-1 25 APPENDIX 1............................................................................................................ 25-1
LIST OF TABLES
PAGE Table 1-1 Base Case Pre-Tax Cash Flow Summary...................................................... 1-9 Table 1-2 Sensitivity Analyses .................................................................................... 1-11 Table 1-3 Mineral Resources (December 31, 2008).................................................... 1-15 Table 1-4 Probable Mineral Reserves (December 31, 2008)....................................... 1-16 Table 1-5 Capital Expenditures ................................................................................... 1-19 Table 1-6 Operating Costs ........................................................................................... 1-20 Table 10-1 Exploration Summary................................................................................ 10-1 Table 11-1 Exploration Intersections 2008.................................................................. 11-1 Table 16-1 2008 Plant Production ............................................................................... 16-6 Table 17-1 Indicated Mineral Resource Estimate (December 31, 2008)..................... 17-2 Table 17-2 Inferred Mineral Resource Estimate (December 31, 2008)....................... 17-3 Table 17-3 Summary of Assay Records ...................................................................... 17-7 Table 17-4 Summary of Assay Composites................................................................. 17-8 Table 17-5 Variography Summary ............................................................................ 17-12
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Table 17-6 Mineral Resource Classification Parameters........................................... 17-16 Table 17-7 Mineral Resources (December 31, 2008) .............................................. 17-19 Table 17-8 Comparison of Mineral Resource Estimates ........................................... 17-20 Table 17-9 Mineral Resources (in Addition to Mineral Reserves)............................ 17-21 Table 17-10 Probable Mineral Reserves (December 31, 2008)................................. 17-22 Table 19-1 Previous Production to December 2008 .................................................... 19-3 Table 19-2 Base Case Life of Mine Plan ..................................................................... 19-7 Table 19-3 Mine Equipment ...................................................................................... 19-11 Table 19-4 2008 Contractor Haulage Cost ................................................................ 19-12 Table 19-5 Sales Contract Power Rates..................................................................... 19-13 Table 19-6 Capital Expenditures ............................................................................... 19-15 Table 19-7 2009 Operating Cost Breakdown ............................................................ 19-16 Table 19-8 Operating Costs ....................................................................................... 19-17 Table 19-9 Manpower................................................................................................ 19-18 Table 19-10 Base Case Pre-Tax Cash Flow SumMary ............................................. 19-21 Table 19-11 Sensitivity Analyses .............................................................................. 19-23
LIST OF FIGURES
PAGE Figure 1-1 Sensitivity Analysis.................................................................................... 1-10 Figure 4-1 Location Map ............................................................................................... 4-2 Figure 4-2 Mining Concessions and Exploration Claims .............................................. 4-3 Figure 7-1 Regional Geology......................................................................................... 7-2 Figure 11-1 2008 Drill Hole Locations........................................................................ 11-4 Figure 11-2 Cross-Section 550S .................................................................................. 11-5 Figure 13-1 Sample Preparation Flow Sheet Grade Control Samples...................... 13-4 Figure 16-1 General Flow Sheet .................................................................................. 16-4 Figure 17-1 Histograms of Samples HGZ, LGZ, and Saprolite Zones .................... 17-9 Figure 17-2 Indicator Selection HGZ, LGZ, and Saprolite Zones ......................... 17-11 Figure 17-3 Block Model Grades on Cross Section 550 S ........................................ 17-14 Figure 17-4 Grade Distribution.................................................................................. 17-15 Figure 17-5 Resource Classification.......................................................................... 17-18 Figure 17-6 Mineral Resource and Reserve Pits........................................................ 17-23 Figure 17-7 Production Reconciliation...................................................................... 17-25 Figure 17-8 GLO Reconciliation ............................................................................... 17-26 Figure 19-1 Final Pit Design........................................................................................ 19-2 Figure 19-2 Historic Ore Production ........................................................................... 19-3 Figure 19-3 Plan View of the Open Pit........................................................................ 19-5 Figure 19-4 Longitudinal Section Pit and Surface Profiles ...................................... 19-9 Figure 19-5 Sensitivity Analysis................................................................................ 19-22
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LIST OF APPENDIX FIGURES & TABLES

PAGE Table 25-1 Exploration and Mining Claims and Permits ........................................... 25-1
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This amended and restated technical report has been issued to correct an addition error in Table 17-1 (carried through to Tables 1-3, 17-7 and 17-8) in the technical report dated May 20, 2009, and readdressed June 17, 2009 and entitled Technical Report on the So Francisco Mine, Mato Grosso State, Brazil prepared for Aura Minerals Inc. in accordance with National Instrument 43-101, a copy of which was filed on SEDAR by Aura Minerals Inc. on July 23, 2009. The sum of the GLO and DLO at US$900 gold per ounce amounts to 45,150,000 tonnes, instead of the 41,150,000 tonnes previously stated.
1 SUMMARY
EXECUTIVE SUMMARY
Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) was retained by William Wulftange, Corporate Director, Technical Compliance, of Yamana Gold Inc. (Yamana), to carry out an audit of the Mineral Reserves and Mineral Resources and to prepare an independent Technical Report on the So Francisco Mine (So Francisco, or the Project) of Serra da Borda Minerao e Metalurgia S.A. (SBMM), located in Mato Grosso State in Brazil. The purpose of this independent Technical Report is to provide support information for the disclosure of Mineral Reserves and Mineral Resources at the property. This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects.
This Technical Report has been readdressed to Aura Minerals Inc. (Aura Minerals) following a binding letter agreement dated June 9, 2009, between Aura Minerals and Yamana whereby Aura Minerals will acquire So Francisco from Yamana subject to appropriate consents and completion of a minimum financing by Aura Minerals.
Aura Minerals is a Canadian-based company focused on the acquisition, exploration, development, and operation of mining properties in North and South America. Along with the So Francisco operation, Aura Minerals is in the process of acquiring from Yamana two other producing gold mines, San Andrs in Honduras and So Vicente in
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Brazil. The Company holds 100% of the Aranzazu Project, a past producing coppergold-silver mine in Mexico which Aura Minerals plans to re-start in 2010, and 100% of the Serrote da Laje copper-gold-iron project, located in Alagoas State, Brazil, currently at the feasibility and permitting stage. The Company also controls several early stage gold and base metals properties in Northern Brazil. Aura Minerals shares trade on the Toronto Stock Exchange.
Currently, the major assets and facilities associated with So Francisco are: An open pit mine. From 2006 to the end of 2008, So Francisco treated some 25.3 million tonnes of material at an average grade of 0.53 g/t Au. Currently, the mine produces approximately 600,000 tonnes of ore per month made up of approximately 375,000 tonnes of run-of-mine dump leach ore and 225,000 tonnes of higher-grade crushed ore. A crushing plant, a gravity recovery circuit, heap leach pads with carbon recovery system which produces gold dor, and a hydrogen peroxide cyanide destruction circuit. Mine and plant infrastructure including office buildings, shops, and equipment. On-site accommodations, recreation facilities, and cafeteria for the workforce. A controlled solution discharge system including Pregnant, Intermediate, and Barren ponds and a Security dam for where excess solutions, generally during the rainy season, are collected and neutralized by hydrogen peroxide prior to final discharge.
Scott Wilson RPA has had no prior involvement with the operations described in this report.
CONCLUSIONS
EXPLORATION
Although potential for discovery of additional gold ounces remains at depth below the deposit, no exploration is planned at So Francisco in 2009.
GEOLOGY AND MINERAL RESOURCES
The So Francisco deposit is a shear hosted and structurally controlled lode gold deposit which appears to be epigenetic and composed of one centimetre to five centimetres wide, sericitic quartz veins containing free gold. It occurs in a hydrothermal
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alteration zone within the basal Fortuna Formation which is composed of fine to coarse grained meta-arenites, with locally reddish metapelites and occasionally oligomictic metaconglomerates. The gold occurs as free gold and frequently as coarse nuggets measuring several millimetres in diameter with the quartz, as laminations along the fracture planes, and within limonite boxwork after pyrite and arsenopyrite. The ore is divided into two types - GLO (Gravity Leach Ore) and DLO (Dump Leach Ore) depending on gold content and processing method.
The 2008 So Francisco Mineral Resources estimated by Yamana using a long term $900 gold price total 41.2 million tonnes of Indicated Mineral Resources at an average grade of approximately 0.69 g/t Au inclusive of the Mineral Resources which have been converted to Mineral Reserves. Using a long term $900 gold price, the deposits are estimated to contain some 751,000 tonnes of Inferred Mineral Resources at an average grade of approximately 0.8 g/t Au. The Inferred Resources are in addition to the reported Mineral Reserves. With the exception of not using a minimum width which is not critical, these resource estimates, in Scott Wilson RPAs opinion, are prepared in accordance with CIM definitions and are NI 43-101 compliant.
An inverse distance squared estimate was independently completed on the $900 resource pit using verified grade shells. The results were compared with the Yamana indicator kriged totals. As predicted by Yamana, it is apparent that direct interpolation does not produce satisfactory results. When reconciled against production, the Yamana estimate is a more accurate estimate than the inverse distance squared estimate, containing fewer tonnes and ounces of gold and appearing to restrict the spread of gold from the scattered high grade values in the deposit.
MINERAL RESERVES AND LIFE OF MINE PLAN
The 2008 So Francisco Mineral Reserves reported by Yamana total 31.9 million tonnes of Probable Mineral Reserves at an average grade of 0.71 g/t Au.
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Scott Wilson RPA notes that the reserves are in accordance with the CIM definitions and are considered NI 43-101 compliant. The Mineral Reserves have been estimated using a cut-off grade of 0.45 g/t Au for GLO and 0.15 g/t Au for DLO.
The reported Mineral Reserve estimate is reasonable for the remaining Life of Mine (LOM) Plan.
From 2009 to 2013, it is planned to mine approximately 7.3 million tonnes per year at average grades ranging from 0.27 g/t Au to 1.26 g/t Au. In 2013, production drops to approximately 4.3 million tonnes per year due to ore depletion. In Scott Wilson RPAs opinion, the Mine Call Factor (MCF) currently employed at the mine is not within an acceptable range, and should be improved in order to support the assumptions used for Mineral Reserve evaluation and mine planning purposes. A new block model and more accurate pit sampling will allow a better comparison of long term model (mineral reserves) and the short term model (block model based on pit samples). Complete sampling of all crushed material will also improve the estimate of gold in the material sent to the heaps. Both of these measures will enable better
reconciliation of the Mineral Reserve estimate and the actual gold production.
However, any conclusions regarding the amount of gold contained in the mine production compared to the reserve estimate must take into account that the mine production is derived from calculations of the amount of gold and recovery in the heaps. This may not be a reliable estimate since the grade of the portion of the crushed material dumped on the heap and the actual gold recovery in the heap are not determined by sampling.
MINERAL PROCESSING
Plant adjusted production for 2008 totalled 7,430,903 tonnes grading 0.459 g/t Au resulting in the recovery of 75,937 ounces of gold for an overall calculated recovery of 69.2%. The monthly processed tonnage remained fairly constant at an average of
670,000 tonnes per month from January to August and dropped to approximately 520,000 tonnes per month for the remainder of the year. This occurred during the transition
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period during the switch to contractor haulage from owner operated trucks. Head grade varied between 0.39 g/t Au and 0.57 g/t Au depending on source of feed from the mine. The overall feed grade for 2008 was 0.459 g/t Au.
CAPITAL AND OPERATING COSTS
Yamana provided Scott Wilson RPA with capital cost for the LOM, and operating cost estimates for 2009 to 2013.
Major capital items include sustaining development, equipment replacement, plant expansion, building costs, and closure. Scott Wilson RPA reviewed the total capital cost estimate, which amounts to US$24.5 million, and finds it to be appropriate.
Budget operating costs were reviewed, and used as the basis for projecting costs for the LOM. Based on the comparison of budget estimates with actual costs from 2008, the operating cost estimates were found to be appropriate, but additional operating costs will be incurred for removal of additional waste. The average operating cost over the LOM, including mining, processing and G&A, is estimated to be $8.57 per tonne leached but will increase to $9.14 per tonne leached when the additional waste is accounted for.
RECOMMENDATIONS Scott Wilson RPA concurs with capital expenditures of $24.5 million estimated by Yamana for the period 2008-2013. This estimate consists of:
Machinery and equipment costs IT and communications Furniture and office equipment Building costs Technical studies Reclamation and closure costs
No exploration drilling is planned at So Francisco in 2009.
Other Scott Wilson RPA recommendations include:

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Complete analysis of duplicate core samples from diamond drill holes. Generally, drill core duplicates are introduced for less than one in 100 samples and they should be carefully selected to represent different ore types, alternation styles, and rock competency. Complete analysis of coarse crush duplicates, core duplicates, and pulp duplicates and consider the results prior to completion of the resource estimation database. This information will allow the assessment of sample preparation, sample size, and accuracy of the primary laboratory. Replace the current grade control drills with blasthole chip sampling and logging as suggested by Smee and Associates Consulting Ltd. (Smee) in its internal report for Yamana in 2008. Due to problems with the grade control sampling, fine material was lost at the top of the holes and from the stack on the drill, and some holes returned very little sample. The blastholes are drilled on a 3.5 m x 4.0 m grid and would provide much denser and therefore superior grade and geology information for grade control requirements. Carry out an initial study to compare the accuracy of analyzing the complete pile of blasthole cuttings versus 15 kg and one kilogram sample splits. Smee recommended that pie sampling boxes be used to sample the resulting piles of drill cuttings. This methodology is expected to produce 15 kg samples, which would be split to one kilogram size in order to improve the sample preparation time in the laboratory. Scott Wilson RPA concurs with the Smee recommendation, but recommends an initial sample size study. Enclose the core compound in a security fence and restrict access to appropriate employees. Purchase DHLogger QA/QC package to allow automatic updates and verification of the incoming assay information. Install a belt sampling system in the crushing plant in order to determine the grade of crushed material sent to the gravity circuit and directly to leach piles. Investigate a capping strategy for gold values in the block model since reconciliation of the High Alteration Zone (HGZ) model with mine production shows the model is predicting higher grades than are achieved in practice. Use samples from at least two drill holes for a Measured Resource classification and reduce the search volume for the Measured Resource category to 10 m x 20 m x 5 m. Include pit mapping and grade control sampling results into future resource estimates in order to increase confidence in the grade estimates and resource classification for material immediately below the current pit floor. Page 1-6
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Complete an initial desktop review of pit slopes at the earliest time, to assess potential savings by reducing the stripping required. Examine the use of larger excavators and trucks which may prove attractive as haul distances increase. Investigate an increase in the production drilling pattern size in waste (presently 5.5 m x 4.5 m) and the resulting fragmentation limits to permit more effective haulage to the waste dumps. The use of larger trucks may also prove attractive as haul distances increase, in an effort to maintain or reduce haulage costs. Use most recently forecast long term LOM costs in future reserve calculations instead of the current yearly costs. Review the mine plan to make the necessary adjustments based on a revised pit plan and production schedule and adjust the LOM cash flow to reflect the effects of the tonnes and grades of material in the revised mine plan.
ECONOMIC ANALYSIS
A pre-tax Cash Flow Projection has been provided by Yamana from the LOM production schedule and capital and operating cost estimates, and is summarized in Table 1-1. Scott Wilson RPA generated a cash flow projection incorporating the additional waste removal required for the LOM. Scott Wilson RPA recommends that Yamana adjust the LOM cash flow to reflect the cost of the anticipated additional waste removal. A summary of the key criteria is provided below.
ECONOMIC CRITERIA
REVENUE
The base case is mining approximately 75,000 tonnes per day mining (ore + waste) from the open pit (23.3 million tonnes per year). The requirement to move additional waste tonnage will increase the daily rates to approximately 23,300 tonnes for the ore and 58,500 tonnes for the waste for a total of 81,800 tonnes per day. Global metallurgical recovery averaging 76%. o GLO+Gravity recovery of 81%. o DLO recovery of 58%.
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COSTS
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Royalty of 1.0% of metal sales to the government and 0.5% to the land owner. Weighted average metal price: US$754 per ounce gold. This is the three year trailing average price as of April 2, 2009. Revenue is recognized at the time of production.
Mine life: 4.4 years. Life of Mine production plan as summarized in Table 19-1. Mine life capital totals US$24.5 million. The base case average operating cost over the mine life is US$8.57 per tonne (GLO+DLO) leached. The average operating cost over the LOM period will increase by $0.55 per tonne once the additional waste removal is added into the cash flow model.
CASH FLOW ANALYSIS Using the data provided by Yamana, the base case undiscounted pre-tax cash flow is $115 million. With the addition of 10.7 million tonnes of waste, and considering the Project on a stand-alone basis, the undiscounted pre-tax cash flow totals $97 million over the mine life.
The total base case cash cost is $482 per ounce of gold. The mine life capital unit cost is $55 per ounce, for a total production cost of $537 per ounce of gold. The total cash cost including the additional waste is $515 per ounce of gold. The mine life capital unit cost is $55 per ounce, for a resulting total production cost of $570 per ounce of gold.
Average annual gold production during operation is 127,000 ounces per year.
The NPV at a 7.5% discount rate is $100 million or $85 million after including the additional waste.
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Aura Minerals Inc. So Francisco Mine
Year 1 2009 Mining Ore Gold Grade Waste Total Material (Ore + Waste) Stripping Ratio 000 t g/t waste tpd 000 t 000 t (GLO & DLO combined) (GLO carrying all the waste) 7,678 0.74 50.12 15,687 23,364 2.0 4.4 Year 2 2010 6,960 0.78 50.61 15,840 22,800 2.3 4.4 Year 3 2011 6,960 0.78 50.61 15,840 22,800 2.3 4.4
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TABLE 1-1 BASE CASE PRE-TAX CASH FLOW SUMMARY

Year 4 2012 5,993 0.68 55.85 17,480 23,473 2.9 7.0 Year 5 2013 4,291 0.46 38.48 4,521 8,812 1.1 5.7 Total / Average 31,882 0.71 50.65 69,368 101,249 2.2 4.9
Process Tonnes Leached Gold Grade
000 t g/t GLO 000 t g/t DLO 000 t g/t 000 ozs
7,678 0.74 3,600 1.26 4,078 0.27 181.6 73.3% 78.4% 58.3% 74.5%
6,960 0.78 3,600 1.26 3,360 0.27 175.3 73.9% 80.7% 58.3% 77.0%
6,960 0.78 3,600 1.26 3,360 0.27 175.3 73.9% 80.9% 58.3% 77.1%
5,993 0.68 2,500 1.26 3,493 0.27 131.9 72.7% 84.4% 58.3% 78.3%
4,291 0.46 797 1.26 3,494 0.27 62.9 67.9% 89.2% 58.3% 74.2%
31,882 0.71 14,097 1.26 17,785 0.27 727 73% 81% 58% 76%
Total Contained Gold Recovery
% GLO+Gravity % DLO % %
Global Recovery Payable Gold
Gravity Circuit 000 ozs GLO 000 ozs DLO 000 ozs Total Payable Gold Revenue Au Price Gross Revenue Royalties Net Revenue Operating Costs Mining 000 US$ 000 US$ 000 US$ 000 ozs
9.0 105.5 20.8 135.2
23.8 94.1 17.1 135.0
24.5 93.6 17.1 135.1
32.5 53.0 17.8 103.3
17.1 11.7 17.8 46.6
107 358 91 555
754 101,971 1,530 100,441
754 101,778 1,527 100,251
754 101,894 1,528 100,366
754 77,909 1,169 76,740
754 35,172 528 34,644
754 418,723 6,281 412,442
1.5%
Processing G&A Total Operating Cost Unit Cash Costs
US$/t moved US$/t leached 000 US$ US$/t leached 000 US$ US$/t leached 000 US$ 000 US$ US$/t leached US$/oz
1.43 4.35 33,411 1.68 12,931 1.13 8,676 55,017 7.17 407
1.66 5.44 37,848 2.00 13,891 1.27 8,839 60,578 8.70 449
1.77 5.80 40,356 2.14 14,899 1.37 9,535 64,790 9.31 479
1.85 7.25 43,425 1.96 11,761 1.37 8,210 63,397 10.58 614
1.91 3.92 16,831 1.55 6,654 1.37 5,879 29,363 6.84 629
1.70 5.39 171,871 1.89 60,136 1.29 41,139 273,146 8.57 482
Operating Cashflow Operating Margin Unit Operating Margin
000 US$ US$/t leached US$/oz
45,424 5.92 360
39,673 5.70 357
35,575 5.11 321
13,343 2.23 188
5,281 1.23 179
139,296 4.37 311
Capital Costs Total Capital Cost Unit Capital Costs
2,788 0.36 22
3,929 0.56 35
4,056 0.58 37
2,836 0.47 40
10,922 2.55 370
24,531 0.77 55
Cashflow Net Pre-Tax Cashflow Cumulative Pre-Tax Cashflow Economics Pre-Tax NPV discounted at
000 US$ 000 US$
42,636 42,636
35,744 78,380
31,519 109,899
10,507 120,406
(5,641) 114,765
114,765
2.5% 5.0% 7.5% 10.0% 12.5%
MUS$ MUS$ MUS$ MUS$ MUS$
$109 $104 $100 $96 $92
Aura Minerals Inc. So Francisco Mine, Technical Report NI 43-101 Dated May 20, 2009; readdressed June 17, 2009; amended July 27, 2009
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SENSITIVITY ANALYSIS
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Project risks can be identified in both economic and non-economic terms. Key economic risks were examined by running cash flow sensitivities: Gold price Head Grade Recovery Operating costs (Total Cash Cost) Capital costs
NPV sensitivity over the base case has been calculated for -20% to +20% variations. The sensitivities are shown in Figure 1-1 and Table 1-2.
FIGURE 1-1 SENSITIVITY ANALYSIS
$180
$160
$140
$120
$100
MUS$
$80 $60 $40 $20 $0 20%
AuPrice HeadGradeGLO
10%
Recovery GLO HeadGradeDLO
Base Case
Recovery Gravity
+10%
Recovery DLO CapitalCost
+20%
Operating Cost
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TABLE 1-2 SENSITIVITY ANALYSES
Parameter Variables Gold Price GLO Head Grade GLO Recovery DLO Head Grade DLO Recovery Gravity Recovery Total Cash Cost Capital Cost
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Units $/oz g/t 000 ozs g/t 000 ozs 000 ozs $/oz $/oz
-20% 603 1.01 286 0.22 73 85 386 44
-10% 679 1.13 322 0.24 82 96 434 49
Base 754 1.26 358 0.27 91 107 482 55
+10% 829 1.39 394 0.30 100 118 531 60
+20% 905 1.51 429 0.33 109 128 579 66
NPV Gold Price GLO Head Grade GLO Recovery DLO Head Grade DLO Recovery Gravity Recovery Total Cash Cost Capital Cost
Units Million $ Million $ Million $ Million $ Million $ Million $ Million $ Million $
-20% 31 45 55 89 89 97 145 104
-10% 66 73 77 94 94 98 122 102
Base 100 100 100 100 100 100 100 100
+10% 134 127 122 105 105 101 78 98
+20% 168 155 145 111 111 103 55 96
As indicated by the sensitivity chart and table, the project is most sensitive to the gold price, head grade, and operating costs, followed by the GLO ore recovery. Therefore all efforts to accurately determine the head grade and to help reduce the operating costs would be necessary in order to optimize the economics of the So Francisco mine operation.
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TECHNICAL SUMMARY
PROPERTY DESCRIPTION, LOCATION AND TENURE The So Francisco property is located close to the Bolivian border in the western portion of the State of Mato Grosso in west central Brazil (1450W latitude and 5937S longitude). It is approximately 560 km west of Cuiab, the state capital city. The property consists of two contiguous mining permits covering some 16,368.34 ha that were granted in 1982 by the Departamento Nacional de Produo Mineral (DNPM). The DNPM process numbers for the permits are 860938/1982 and 860937/1982. The
permitting process for the Project has been completed and all the relevant licences for the operation of the So Francisco Mine are in place. There are no apparent environmental liabilities or non-compliance issues for the property.
ACCESS AND SITE INFRASTRUCTURE The So Francisco Mine is readily accessible from Cuiab by highways BR-070/174 or by chartered flights from Cuiab to a 1.25 km paved airstrip at So Vicente, some 50km by road from So Francisco, or a gravel runway at So Francisco. Cuiab is serviced by several daily scheduled air flights from several Brazilian cities. The town of Pontes e Lacerda with a population of some 40,000 inhabitants is the closest full service community where modern education, medical, shopping, and banking facilities are available.
A power line has been constructed to connect the mine to the national grid and water is readily available from local streams and groundwater.
HISTORY Gold was first discovered in the area in the 1700s and mining at So Francisco began the use of African slaves. The district reportedly produced and shipped some 60 to 70 tonnes of gold to Portugal between 1720 and 1830. Artisanal miners, garimpeiros, began mining in the area in the mid-1970s, and Santa Elina Gold Corporation (Santa Elina) began acquiring mineral concessions in 1977. In 1983, Santa Elina commenced a
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placer operation at So Vicente, followed by a flotation and gravity concentration operation from 1995 to 1997. A total of some 186,810 ounces of gold were reportedly produced by these two operations.
Santa Elina and Echo Bay Mines Ltd. carried out additional exploration of the area that included detailed drilling, followed by mineral resource/reserve estimates, and associated pre-feasibility studies in 1996 and 1997. The So Vicente operation was shut down in 1997 due to high operating costs.
In 2002, Santa Elina re-examined the studies based on reduced costs due to currency devaluation. In 2004, a shaft and three trenches were excavated to obtain bulk samples for metallurgical testing, including large column tests and pilot-plant sized gravity concentration tests. Operations by Yamana started in 2006. Total production for the So Francisco Mine by Yamana to the end of 2008 is approximately 262,000 ounces of gold recovered from production of 25,259,000 tonnes of ore grading an average of 0.53 g/t Au.
GEOLOGY AND MINERALIZATION The geological setting for the So Francisco Project is the Aguape Mobile and Mafic Arc Belt. This major crustal scale shear zone separates the Archean Amazon Craton from the Proterozoic Paragua Craton. The belt extends for more than 600 km in a northnorthwest direction and is characterized by a prominent mountain range composed of a 1,200 m thick sequence of Proterozoic clastic sediments known as the Aguapei Group which hosts the gold mineralization.
The So Francisco deposit is a shear hosted and structurally controlled lode gold deposit which appears to be epigenetic and composed of one centimetre to five centimetres wide, sericitic quartz veins containing free gold. It occurs in a hydrothermal alteration zone within the basal Fortuna Formation which is composed of fine to coarse grained meta-arenites, with locally reddish metapelites and occasionally oligomictic metaconglomerates. The gold occurs as free gold and frequently as coarse nuggets measuring several millimetres in diameter with the quartz, as laminations along the
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fracture planes, and within limonite boxwork after pyrite and arsenopyrite. The ore is divided into two types - GLO and DLO - depending on gold content and processing method.
MINERAL RESOURCES AND MINERAL RESERVES For this report, Scott Wilson RPA has reviewed the Mineral Resource and Mineral Reserve estimates of the So Francisco Mine, as reported by Yamana as of December 31, 2008. Scott Wilson RPA carried out a number of checks to verify the various procedures and numerical calculations used in the estimates. This included detailed tracing of the methodology of estimating tonnage and grade of resource and reserve blocks. With few exceptions, Scott Wilson RPA found that values and compilations of gold grades were accurately recorded and calculated as provided in block models and on cross-sections. Scott Wilson RPA, however, notes that, although not material, a minimum thickness was not applied to the mineralized structure in the estimation of Mineral Resources.
As part of this audit, Scott Wilson RPA carried out an independent estimate of the deposit to allow for comparison of the SBMM/Yamana estimates with the Scott Wilson RPA estimates, based on the surface data and wireframes provided. It is Scott Wilson RPAs opinion that, except for the classification of the resources, the Yamana estimate is a more conservative estimate containing fewer tonnes and ounces of gold. The Yamana methodology appears to restrict the spread of gold from the scattered high grade values in the deposit.
Table 1-3 contains the Mineral Resource estimates for the So Francisco Mine as of December 31, 2008.
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TABLE 1-3 MINERAL RESOURCES (DECEMBER 31, 2008)

Gold Price (US$/oz) 800 Classification Indicated Inferred Indicated Inferred Indicated Inferred Indicated Inferred Tonnes 41,172,000 410,000 45,150,000 751,000 53,074,000 1,880,000 65,255,000 24,900,000 Grade (g/t Au) 0.72 0.8 0.69 0.8 0.66 0.7 0.61 0.7 Gold (oz) 948,000 11,000 1,007,000 19,000 1,127,000 37,000 1,276,000 580,000
900
1,000
1,200
Notes: 1. Totals may not add correctly due to rounding. 2. CIM definitions were followed for Mineral Resources. 3. Mineral Resources were estimated using a GLO cut-off grade of 0.45 g/t Au and a DLO cut-off grade of 0.15 g/t Au. 4. Mineral Resources using the $900 gold price were estimated based on a long term total recovery of 58% for DLO and 81% for GLO. Mineral Resources are based on a unit mining cost of $1.70/t, a GLO processing cost of $2.75/t, a DLO processing cost of $1.22/t, and a unit G&A cost of $1.29/t. 5. No minimum mining width was used. 6. No cutting of high assay values was used. 7. Indicated Mineral Resources are inclusive of resources used to estimate Mineral Reserves. 8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Yamana compiled the LOM Plan schedule using Indicated Resources (Table 1-3). The process uses various software programs including Whittle 4D and a scheduling package, to determine and optimize the material converted to Mineral Reserves within an open pit. Detailed mine plans, gold price, ore types, mining and metallurgical recoveries, and cost information are considered during this process.
Mining factors such as dilution and recovery are used to produce diluted tonnes and grades and the economic value of each potential mining area is calculated using a forecast long-term gold price of US$700 per ounce. These economic values are weighed against forecast costs and metallurgical recoveries for each potential mining area and the resulting economically viable mine areas are totalled to produce the Mineral Reserves.
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Table 1-4 contains the Mineral Reserves for the So Francisco Mine as of December 31, 2008.
TABLE 1-4 PROBABLE MINERAL RESERVES (DECEMBER 31, 2008)

Ore Type GLO DLO Total Mineral Reserves Tonnes 14,097,000 17,785,000 31,882,000 Grade (g/t Au) 1.26 0.27 0.71 Gold (oz) 572,000 156,000 727,000
Notes: 1. Totals may not add correctly due to rounding. 2. CIM definitions were followed for Mineral Reserves. 3. Mineral Reserves are estimated at a GLO cut-off grade of 0.45 g/t Au and a DLO cut-off grade of 0.15 g/t Au. 4. Mineral Reserves are estimated using an average long-term gold price of US$700 per ounce and total recovery of 58% for DLO and 81% for GLO. 5. Mineral Resources are based on a unit mining cost of $1.70/t, a GLO processing cost of $2.75/t, a DLO processing cost of $1.22/t, and a unit G&A cost of $1.29/t. 6. A selective mining unit of 10 m x10 m x10 m was used. 7. Bulk density is 2.60 t/m3.
MINING OPERATIONS Mining at the So Francisco property is by the open pit method. The pit is accessed via a standard access road or ramp 15 m wide at a -8% grade which provides access to the various benches. The mine produced approximately 54,000 tonnes per day during 2008 which was made up of 8,000 tonnes per day of GLO, 12,400 tonnes per day of DLO, and 33,500 tonnes of waste. The open pit operations work two shifts per day at 10 hours per shift, with a six day work week, for 313 days per year, and the crusher circuit operates approximately 16 hours per day, seven days per week. The mine operation is designed to send approximately a steady feed of GLO, on a daily basis, to the gravity circuit (the highest grade material) while the run-of-mine DLO material goes directly to the leach pad together with the higher grade crushed DLO. The ore is hauled by 30 tonne haul trucks provided by a contractor (Fagundes Engenharia e Minerao Ltda).
Production drilling is carried out with 5.5 inch diameter holes and patterns for waste and ore of 5.5 m x 4.5 m and 3.5 m x 4.5 m, respectively. Standard bench height is 10 m, with one metre of sub-grade drilling for floor control. The bottom seven metres of the
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blastholes are loaded with emulsion type explosives, and a three metre stemmed collar is left at the top of the hole. The overall average stripping ratio is 2.2:1 waste to ore. Ore and waste haulage is currently carried out by a contractor (Fagundes Engenharia e Minerao Ltda.) using 30-tonne trucks.
Mining over the five year mine life is planned to produce some 555,300 ounces of gold from 14.1 million tonnes of GLO and 17.7 million tonnes of DLO. In total, some 69.4 million tonnes of waste will be removed for an average stripping ratio of 2.2:1 in the base case. Daily production will average approximately 23,300 tonnes of ore and 50,700 tonnes of waste over the base case LOM period.
MINERAL PROCESSING The So Francisco mineral processing system is made up of a gravity concentration circuit combined with a multi-lift, heap leach operation. The higher grade ore, or GLO, has a cut-off grade of 0.45 g/t Au, and the marginal, or DLO, ranges in grade between 0.15 g/t Au and 0.45 g/t Au. A portion of the GLO (above 0.6 g/t Au) is processed by crushing, gravity concentration followed by heap leaching of the tailings product from the circuit. Ore grading between 0.45 g/t Au and 0.6 g/t Au is crushed prior to leaching. Marginal ore is processed by run-of-mine (ROM) heap leaching.
Crushing includes a three-stage open-circuit system, with an additional fourth stage closed-circuit, fine-crush system for the higher grade ore. Approximately 2.7 million tonnes of GLO and 4.5 million tonnes of DLO were processed in 2008. Approximately 2.1 million tonnes of the GLO was processed through a gravity concentrating circuit with the discharge being sent to the heap leach.
At the heap leach area, both crushed and ROM ore are stacked using trucks and bulldozers. The leach pad is a multi-lift, single-use type pad. The basic components of the leach pad include a compacted earth foundation, a compacted soil sub-base, a 1.5 mm thick geomembrane liner, a cushion layer of material on top of the geomembrane, and a series of perforated plastic drainpipes, which are placed on top of the geomembrane,
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under the cushion layer during stacking, to collect leach solutions. Following stacking of the crushed and ROM ore, both ore types are irrigated with leach solution and the resulting gold-bearing solutions are collected in a pregnant solution pond prior to further processing for recovery of gold.
A carbon Adsorption/Desorption/Recovery (ADR) facility is used for gold recovery. The ADR facility includes a train of five, cascade-type, open-top up-flow carbon adsorption columns, a carbon desorption system, a carbon acid wash circuit, a precious metals recovery circuit that utilizes electrowinning, and a complete smelting system for gold production. Gravity plant concentrates and the loaded cathode material from the carbon recovery plant are combined and smelted to produce a dor product.
ENVIRONMENTAL CONSIDERATIONS The environmental licence for the So Francisco Mine operation is valid until November 2009. Licences are posted on the government website, www.sema.mt.gov.br. There are apparently no environmental liabilities or non-compliance issues for the property.
The current mine budget includes approximately $12 million for reclamation and closure and about $10 million of this amount is scheduled for the last year of the mine life.
CAPITAL AND OPERATING COST ESTIMATES Capital costs over the mine life are estimated to be US$24.5 million (Table 1-5). Major capital items include sustaining development, equipment replacement, plant expansion, building cost, and closure.
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TABLE 1-5 CAPITAL EXPENDITURES
Area Mine Development Mineral Rights Machinery and Equipment Cost Trucks and Vehicles IT & Communication Furniture and Office Equipment Building Cost Other Land Acquisition Technical Studies Reclamation and Closure Total Capital
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Total ($ 000) 8,446 154 51 3,163 921 11,796 24,531
The average operating cost over the mine life, including mining, processing and G&A, was estimated by Yamana to be $8.57 per tonne leached (Table 1-6) but will increase by approximately US$0.55 per tonne when the additional waste is accounted for. An updated mine plan and production schedule is required to address this issue.
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TABLE 1-6 OPERATING COSTS
Area Waste (tonnes leached) GLO (tonnes mined/leached) DLO (tonnes mined/leached) Total tonnes leached Mine All Material ($/t moved) GLO + Waste ($/GLO t leached) DLO ($/DLO t leached) Mine Average ($/Total tonnes leached) Plant GLO ($/GLO t leached) DLO ($/DLO t leached) Plant Average ($/Total tonnes leached) G&A ($/Total tonnes leached) Total Operating Cost ($/Total tonnes leached)
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Mine Life Average/Total 69,368 14,097 17,785 31,882
1.70 10.05 1.70 5.39
2.79 1.22 1.89 1.29 8.57
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2 INTRODUCTION
Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) was retained by William Wulftange, Corporate Director, Technical Compliance, of Yamana Gold Inc. (Yamana), to carry out an audit of the Mineral Reserves and Mineral Resources and to prepare an independent Technical Report on the So Francisco Mine (So Francisco) of Serra da Borda Minerao e Metalurgia S.A. (SBMM), located in Mato Grosso State in Brazil. The purpose of this independent Technical Report is to provide support
information for the disclosure of Mineral Reserves and Mineral Resources at the property. This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects.
This Technical Report has been readdressed to Aura Minerals Inc. (Aura Minerals) following a binding letter agreement dated June 9, 2009, between Aura Minerals and Yamana whereby Aura Minerals will acquire So Francisco from Yamana.
Aura Minerals is a Canadian-based company focused on the acquisition, exploration, development, and operation of mining properties in North and South America. Along with the So Francisco operation, Aura Minerals is in the process of acquiring from Yamana two other producing gold mines, San Andrs in Honduras and So Vicente in Brazil. The Company holds 100% of the Aranzazu Project, a past producing coppergold-silver mine in Mexico which Aura Minerals plans to re-start in 2010, and 100% of the Serrote da Laje copper-gold-iron project, located in Alagoas State, Brazil, currently at the feasibility and permitting stage. The Company also controls several early stage gold and base metals properties in Northern Brazil. Aura Minerals shares trade on the Toronto Stock Exchange.
Currently, the major assets and facilities associated with So Francisco are: An open pit mine. From 2006 to the end of 2008, So Francisco treated some 25.3 million tonnes of material at an average grade of 0.53 g/t Au. Currently, the mine produces approximately 600,000 tonnes of ore per month made up of
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approximately 375,000 tonnes of run-of-mine dump leach ore and 225,000 tonnes of higher-grade crushed ore. A crushing plant, a gravity recovery circuit, heap leach pads with carbon recovery system which produces gold dor and a hydrogen peroxide cyanide destruction circuit. Mine and plant infrastructure including office buildings, shops, and equipment. On-site accommodations, recreation facilities, and cafeteria for the workforce. A controlled solution discharge system including Pregnant, Intermediate, and Barren ponds and a Security dam for where excess solutions, generally during the rainy season, are collected and neutralized by hydrogen peroxide prior to final discharge.
Scott Wilson RPA has had no prior involvement with the operations described in this report.
SOURCES OF INFORMATION The Qualified Persons for this report are Messrs. Normand L. Lecuyer, P. Eng., Principal Mining Engineer with Scott Wilson RPA, and Chester M. Moore, P. Eng., Principal Geologist with Scott Wilson RPA. In preparation of this report, Lecuyer and Moore reviewed technical documents and reports on So Francisco supplied by SBMM and Yamana. The key technical documents reviewed by Scott Wilson RPA for this report are So Francisco Mine Serra da Borda Minerao e Metalurgia SBMM NI 43-101 Technical Report plus on-site technical presentations from So Francisco personnel.
Messrs. Lecuyer and Moore visited the operations on December 8 to 10, 2008, and reviewed technical information such as previous technical reports, legal status of mine holdings, assay results, drill sections and level plans, mine and plant production, Life of Mine Plan, environmental, manpower, and health and safety aspects at the current operations. While at the site, and in subsequent communications, Messrs. Lecuyer and Moore held discussions with technical personnel knowledgeable about the So Francisco operations including:
Mr. William H. Wulftange, Corporate Director, Technical Compliance, with Yamana. Mr. Alessandro Henrique Medeiros Silva, Corporate Manager, Mineral Reserves with Yamana. Page 2-2
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Mr. Paulo Roberto Bergmann Moreira, General Manager of So Francisco Mine with Yamana. Mr. Tetsuo Oishe, Geology and Planning Coordinator with SBMM. Mr. Luiz E. C. Pignatari, Mine Engineer with SBMM. Mr. Alexandre de Souza, Geologist with SBMM. Mr. Marcos Dias Alvim, Mine Geologist with SBMM. Mr. Paulo Ferlucio, Mine Engineer with SBMM. Mr. Kleber Silva Goncalves, Mine Engineer with SBMM. Ms. Viviane de Melo Borges, Process Engineer with SBMM. Ms. Poliana Cardoso Brando, Laboratory Coordinator at So Francisco with Yamana.
Chester Moore is responsible for all sections of the Technical Report, except Section 19 and parts of sections 17, 20, and 21 not covered by Normand Lecuyer. Normand Lecuyer is responsible for Section 19 and parts of sections 17, 20, and 21 of the Technical Report not covered by Chester Moore.
The documentation reviewed, and other sources of information, are listed at the end of this report in Section 22 References.
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LIST OF ABBREVIATIONS
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Units of measurement used in this report conform to the SI (metric) system. All currency in this report is US dollars (US$) unless otherwise noted.
C F g A a bbl Btu C$ cal cfm cm cm2 d dia. dmt dwt ft ft/s ft2 ft3 g G Gal g/L g/t gpm gr/ft3 gr/m3 hr ha hp in in2 J k kcal kg km km/h km2 micron degree Celsius degree Fahrenheit microgram ampere annum barrels British thermal units Canadian dollars calorie cubic feet per minute centimetre square centimetre day diameter dry metric tonne dead-weight ton foot foot per second square foot cubic foot gram giga (billion) Imperial gallon gram per litre gram per tonne Imperial gallons per minute grain per cubic foot grain per cubic metre hour hectare horsepower inch square inch joule kilo (thousand) kilocalorie kilogram kilometre kilometre per hour square kilometre kPa kVA kW kWh L L/s m M m2 m3 min MASL mm mph MVA MW MWh m3/h opt, oz/st oz oz/dmt ppm psia psig RL s st stpa stpd t tpa tpd US$ USg USgpm V W wmt yd3 yr kilopascal kilovolt-amperes kilowatt kilowatt-hour litre litres per second metre mega (million) square metre cubic metre minute metres above sea level millimetre miles per hour megavolt-amperes megawatt megawatt-hour cubic metres per hour ounce per short ton Troy ounce (31.1035g) ounce per dry metric tonne part per million pound per square inch absolute pound per square inch gauge relative elevation second short ton short ton per year short ton per day metric tonne metric tonne per year metric tonne per day United States dollar United States gallon US gallon per minute volt watt wet metric tonne cubic yard year
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3 RELIANCE ON OTHER EXPERTS

This report has been prepared by Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) for Aura Minerals Inc. (Aura Minerals). The information, conclusions, opinions, and estimates contained herein are based on: Information available to Scott Wilson RPA at the time of preparation of this report; Assumptions, conditions, and qualifications as set forth in this report; and Data, reports, and other information supplied by Yamana and other third party sources.
For the purpose of this report, Scott Wilson RPA has relied on property information provided in a title opinion issued by Aura Minerals counsel in Brazil. Scott Wilson RPA has not researched property title or mineral rights for the So Francisco Mine and expresses no opinion as to the ownership status of the property.
Scott Wilson RPA has relied on Yamana for guidance on applicable taxes, royalties, and other government levies or interests, applicable to revenue or income from the So Francisco Mine.
Except for the purposes legislated under provincial securities laws, any use of this report by any third party is at that partys sole risk.
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4 PROPERTY DESCRIPTION AND LOCATION

The So Francisco property is located close to the Bolivian border in the western portion of the State of Mato Grosso in west central Brazil (Figure 4-1). It is
approximately 560 km west of Cuiab, the state capital. Coordinates for the Project are 1450W latitude and 5937S longitude.
The So Francisco property consists of two contiguous mining permits and two adjacent exploration claim applications covering some 36,308.34 ha. The two mining permits were granted in 1982 by the Departamento Nacional de Produo Mineral (DNPM) and the DNPM process numbers for the permits are 860938/1982 and 860937/1982. The mining permit has been approved for 860938/1982 and the permit for 860937/1982 is being processed. All these areas are shown in Figures 4-2. The
permitting process for the Project has been completed and all the relevant licences for the operation of the So Francisco Mine are in place. A process to consolidate all the required operational licences into one Principal Licence is currently underway.
A list of the mining permits and exploration claims in the Sao Francisco property as of November 2008 is included in Appendix 1. The exploration claims are renewable on a three year basis and have annual fees of approximately $0.90/ha.
The environmental licence for the So Francisco Mine operation is valid until November 2009. Licences are posted on the government website, www.sema.mt.gov.br. There are no apparent environmental liabilities or non-compliance issues for the property.
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60W
55W
North Atlantic Ocean
N
Pacific Ocean
BRAZIL
BRAZIL
10S
72W 60 48
South Atlantic Ocean
South America
North Atlantic Ocean
36W
Amazonas
Par
Acre Rondnia
Mato Grosso
Tocantins 12S
4-2
15S
0
Gois
Brasilia
SO FRANCISCO MINE
Mato Grosso do Sul
So Paulo
Rio de Janeiro
24S
500 Kilometres
1000
South Atlantic Ocean
Figure 4-1
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Aura Minerals Inc.

0 100 200 Metres 300 400
Mato Grosso State, Brazil
So Francisco Mine Location Map
June 2009
Source: Yamana Gold Inc., 2009.
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210,000 E
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So Francisco Mine
860937/82
8,355,700 N
866609/94 867146/93
860938/82
10
Kilometres
Figure 4-2
Aura Minerals Inc.

Legend:
Mining Concession Applied for Mining Concession Applied for Exploration Concession Other Concession June 2009 Source: Yamana Gold Inc., 2009.
So Francisco Mine
Mining Concessions and Exploration Claims

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The So Francisco Mine is readily accessible from Cuiab by highways BR-070/174 or by chartered flights from Cuiab to a 1.25 km paved airstrip at So Vicente located some 50km to the North of So Francisco and connected by gravel road, or a gravel runway at So Francisco. Cuiab is serviced by several daily scheduled air flights from several major Brazilian cities.
The climate at the project site is tropical wet-and-dry (Aw in Kppen Classification), typical of the central part of Brazil, with hot, rainy summers and dry winters. The annual average temperature is 24C, with maximum and minimum absolute temperatures of 40C and 0C, respectively. through to March. The summer rainy period starts in December and continues The total annual
The dry season is from May to September.
precipitation ranges from 1,300 mm to 2,400 mm, with an annual average of 1,700 mm. The mine operates year round in this climate.
The So Francisco Project is located within the municipality of Vila Bela da Santissima Trindade. A total of four communities are close-by the Project. They are Vila Bela da Santissima Trindade, Nova Lacerda, Conquista dOeste and Pontes e Lacerda. The town of Pontes e Lacerda with a population of some 40,000 inhabitants is the closest full service community where modern education, medical, shopping and banking facilities are available.
A power line connects the mine to the national grid and water is readily available from local streams and groundwater.
The physiography of the mine area is characterized by the Serra da Borda mountain range part of the Aguapei Mobile Belt and Mafic Arc that follows the Brazil-Bolivia border. In the vicinity of the Project, the range forms a prominent ridge some 800 m in
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elevation that strikes approximately N30W and is some 20 km wide. The ridge stands out from the plains (at approximately 200 m elevation) with a gentle slope on the western side towards Bolivia and a vertical, to near vertical, cliff-like escarpment on the east side. The cliff-like escarpment extends for more than 200 km along the mountain range/Aguapei Mobile Belt.
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6 HISTORY
Gold was first discovered in the area in the 1700s and mining at So Francisco began with the use of African slaves. The district reportedly produced and shipped some 60 to 70 tonnes of gold to Portugal between 1720 and 1830. A portion of the So Francisco concession area has been set aside as a national archaeological site.
Garimpeiros began mining in the area in the mid-1970s and Santa Elina Gold Corporation (Santa Elina) began acquiring mineral concessions in 1977. In 1983, Santa Elina commenced a placer operation at So Vicente, followed by a flotation and gravity concentration operation from 1995 to 1997. A total of some 186,810 ounces of gold were reportedly produced by these two operations. The So Vicente operation was shut down in 1997 due to high operating costs.
In 2002, Santa Elina re-examined prefeasibility studies completed in 1996 and 1997 based on reduced costs due to currency devaluation. In 2003, Watts, Griffis, and McOuat Limited conducted a review of the property and produced a Preliminary Feasibility Study. In 2004, a shaft and three trenches were excavated to obtain bulk samples for metallurgical testing, including large column tests and pilot-plant sized gravity concentration tests.
From 2006 to 2008, SBMM has produced 25,259,265 tonnes grading an average of 0.53 g/t Au and has recovered 262,081 oz of gold.
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7 GEOLOGICAL SETTING
REGIONAL GEOLOGY
The regional geological setting for the So Francisco Project and the numerous gold occurrences that comprise the Santa Elina gold belt is the Aguape Mobile and Mafic Arc Belt. This major crustal scale shear zone separates the Archean Amazon Craton from the Proterozoic Paragua Craton. The belt extends for more than 600 km in a northnorthwest direction and is characterized by a prominent mountain range composed of a 1,200 m thick sequence of Proterozoic clastic sediments known as the Aguapei Group, which hosts the gold mineralization. The Aguape Group is a sequence of texturally and mineralogically super-mature sediments that unconformably overlie the central part of the Amazon Craton. The sediments consist of predominantly meta-arenites with lesser
amounts of metapelites and even less common lenses of meta-conglomerate. Southward along the belt, the lower part of the Aguape Group contains inter-bedded volcanic units, basic sills and dykes (Figure 7-1).
Structurally, the Aguape Group has been subjected to northwest-southeast compressional forces that folded the eastern edge into broad, to tightly folded, anticlinalsynclinal sequences paralleling the axis of the mobile belt. Faulting, fracturing and shearing have also developed parallel to and across this fold axis.
The known bedrock gold occurrences in Mato Grosso State are separated into two districts: the So Vicente/Borda district, the northern district, and the Pontes e Lacerda district, the southern district (south from So Francisco).
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Legend:
Older Units Younger Units Granitoids Mafic/Ultramafic Igneous Rocks Mobilised Sunsas/Aguapei Group Vibosi Group Cratonic Sunsas Group Faults Shear Zone
Figure 7-1

150 200 250
Source: Yamana Gold Inc, 2009.
0
June 2009
50
100
Regional Geology
7-2
Kilometres
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LOCAL GEOLOGY
The So Francisco deposit occurs in the Fortuna Formation (the basal unit of the Aguapei Group) which is composed of fine to coarse grained meta-arenites, with locally reddish metapelites and occasionally oligomictic metaconglomerates. The
metaconglomerates are composed of quartz pebbles and quartz grains set in a siliceousarenaceous matrix. Preliminary sedimentary structures such as cross-bedding, graded bedding and ripple marks are commonly observed.
Compressional forces from the northeast and southwest resulted in folding, faulting, shearing, and fracturing of the rocks and produced a series of broad anticlines and synclines, which are traceable over several kilometres.
The hydrothermal alteration zone (HAZ) that contains the mineralization is a relatively regular, steeply dipping tabular body which has yet to be defined by drilling at depth. Observed alteration in the HAZ consists of silicification with occasional sericite and chlorite alteration.
The So Francisco geological model defines three main zones: 1) a saprolite zone; 2) a higher grade zone that encloses the core of the deposit starting below the saprolite and continuing down dip; and 3) the overall HAZ where erratic and mostly lower grade mineralization exists (although there are significant areas with higher grades). The
richest mineralization, occurring within the HAZ, is fairly continuous along the northwestern strike, plunges at a low angle towards the northwest, and dips about 65o to the northeast.
It has been verified that it is possible to visually identify the main high-grade zone of the deposit. This zone is distinct and marked by the combination of quartz veins and pyrite (either fresh or oxidized/leached). An increase in the volume concentration of these elements is directly associated with a concentration of nuggets and consequent
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increase in gold grade. The orange-to-red colour acquired by the host rock in the areas of larger sulphide concentration is another distinctive factor of higher grades.
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8 DEPOSIT TYPES
So Francisco is a shear hosted and structurally controlled lode gold deposit which appears to be epigenetic and composed of narrow, one centimetre to five centimetre wide, sericitic quartz veins containing free gold. The veins and vein systems/stockworks are both parallel to and crosscut the bedding planes and appear to be separate or multiple, but closely related, mineralizing events.
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9 MINERALIZATION
Gold mineralization at So Francisco occurs in epigenetic, quartz-filled shear zones generally along the foliation that is oriented parallel to the axis of the anticlinal-synclinal folds and in later, flat to shallow dipping quartz veins and in-filled shear zones that cut the primary bedding of the host rocks. The gold always occurs as free gold, frequently as coarse nuggets measuring several millimetres in diameter with the quartz, as laminations along the fracture planes, and within limonite boxwork after pyrite and arsenopyrite. Pyrite and arsenopyrite commonly occur at depth and form the gangue minerals in the unweathered sulphide horizons. A significant nugget effect is present.
The highest elevation of the mineralization is 800 MASL and the lowest is 450 MASL. The deposit is 1,800 m long, 150 m wide, and 350 m deep (still open at depth).
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10 EXPLORATION
Modern day exploration at So Francisco has occurred periodically from 1990 through to the present. Exploration activities up to the end 2007 are summarized by Mello and Petter (2008) and are listed in Table 10-1.
TABLE 10-1 EXPLORATION SUMMARY

Year
1990 1993 - 1995 1996 1997 1997 - 1998 2003 - 2004
Company
Santa Elina Santa Elina Santa Elina/ Echo Bay Santa Elina/ Echo Bay Santa Elina/ Echo Bay Yamana
Work Done
Diamond Drilling Diamond Drilling Diamond Drilling Diamond/RC Drilling Metallurgical Testing Diamond Drilling Bulk Sampling/Pilot Plant Pre-feasibility Study
Metres
1,102.35 30,239.63 6,649.26 12,199.10
Objective
Exploration Infill Drilling Infill, Exploration, Metallurgical Drilling Infill Drilling Heap Leach Viability
15,029.90
Targeted Infill Drilling Establish Grade and Continuity Establish Mineral Reserves
2005 2006 2007 2008 Total
Yamana Yamana Yamana Yamana
Diamond Drilling Diamond Drilling Diamond Drilling Diamond Drilling Drilling
10,232.40 4,620.25 7,684.10 2,823.25 90,580.24
Infill/Upgrade Drilling Define Zone Extensions Infill/Deep Exploration Infill/Deep Exploration
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11 DRILLING
Systematic testing of the gold bearing zone was started by Santa Elina in 1990 and continues to the present by SBMM. To the end of December 2008, some 90,580 m of drilling has been completed. This includes 2,823.25 m in nine drill holes which was completed in 2008. The 2008 drilling was infill drilling targeted at deeper extensions of higher grade mineralization at the southeast and northwest end of the orebody (Figure 111). Selected intersections from the 2008 drilling are listed in Table 11-1.
TABLE 11-1 EXPLORATION INTERSECTIONS 2008

Drill Hole SF-504
including
From (m) 144.00 162.00

164.00
To (m) 146.00 178.00

166.00
Length (m) 2.00 16.00

2.00
g/t Au 1.62 1.06

2.32
Sector Main Main
172.00
174.00
2.00
4.49
SF-505
including
206.00 122.00 138.00

150.00
210.00 124.00 154.00

152.00
4.00 2.00 16.00

2.00
0.73 1.23 1.12

7.59
Main Main Main Main SW Main Main Main SW SW SW Main SW SW SW Main SW
176.00 240.00
including 240.00
186.00 250.00
242.00
10.00 10.00
2.00
0.48 1.33
5.96
SF-506 SF-507
SF-508
including including including
151.85 170.00 158.00 210.00 240.00 276.00 88.00

112.00
154.00 174.00 162.00 214.00 246.00 278.00 144.00

132.00
2.15 4.00 4.00 4.00 6.00 2.00 56.00

20.00
0.56 0.74 0.34 0.75 0.54 0.68 0.33

0.60
256.00
260.00
262.00
262.00
6.00
2.00
0.93
1.83
324.00
324.00
330.00
326.00
6.00
2.00
1.08
2.28
SF-509
364.00 130.00 308.00
368.00 140.00 310.00
4.00 10.00 2.00
0.90 0.92 5.18
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Drill Hole SF-510
including including including
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To (m) 100.00 134.00
134.00
From (m) 94.00 124.00

132.00
Length (m) 6.00 10.00

2.00
g/t Au 0.44 13.67

64.60
Sector Main Main SW SW SW SW SW Main SW SW SW
186.00
186.00
224.00
200.00
38.00
14.00
0.30
0.53
240.00
240.00
274.00
254.00
34.00
14.00
0.66
1.25
294.00 330.00
including including 330.00
296.00 336.00
332.00
2.00 6.00
2.00
0.65 0.38
0.92
346.00
346.00
350.00
348.00
4.00
2.00
2.28
4.26
SF-511
including
including
42.00
46.00
50.00
48.00
8.00
2.00
0.50
1.03
186.00
188.00
190.00
190.00
4.00
2.00
10.15
19.91
SF-512
including including
220.00
226.00
232.00
228.00
12.00
2.00
0.68
1.83
298.00
300.00
302.00
302.00
4.00
2.00
0.72
1.04
Notes: 1. Gold values are uncut. 2. Above values are core lengths and are not reported as a true thickness of mineralization.
Cross-section 550S (Figure 11-2) illustrates the relative positions of the Main and SW zones as intersected by drill hole SF-510.
The procedures used during the diamond drilling programs are as follows: The collar locations of all drill holes are surveyed and marked by SBMM crews. A Reflex Maxibor II survey instrument is used to provide control information on the directional deviation (both azimuth and inclination) at three metre intervals of each hole. The drill program is completed using HQ (63.5 mm diameter) core as mandated by the need to obtain large drill samples that more fairly represent the actual in situ gold grades. Lithologic logging is done on drill core and geotechnical observations are made by company geologists. All information is recorded on handwritten logs depicting all downhole data including assay values. This includes: Page 11-2
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o o o o o o o o o o o
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Marking lithologic contacts; Descriptive geology; Recording of mineralization, e.g., sulphide content, quartz veins, visible gold; Intensity of various alteration types, e.g., sericite, hematite, kaolin; Structural features, such as foliation, fracture and brecciated zones; Core angles; Core diameter; Core recovery; Downhole inclination; Rock quality designation (RQD) measurements; Maintaining a photographic record of the core with a digital camera.
Scott Wilson RPA is of the opinion that the logging and recording procedures are comparable to industry standards.
The drill contractor used on the property was Rede Engenharia e Sondagens Ltda.
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214500
8357500
215000
8357000
215500
8356500
216000 8356000
216000
214000
215500
213500
8357500
11-4
100
200
300
400
500 Metres 214000 8356000 214500 8355500
213500
Legend:
Lithology Laterite Metasandstone Metaconglomerate Drill Holes Metasandstone Conglomerate Metapelite So Francisco Drill Holes - until 2007 Drill Holes - 2008 Hydrothermal Alteration Strong Alteration Weak Alteration
Figure 11-1
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2008 Drill Hole Locations

June 2009 Source: Yamana Gold Inc., 2009.
SCOTT WILSON RPA

SW
800m
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NE
SF-212 SF-214 SF-310
SF-209 SF-207 SF-317 SF-510
800m
700m 6.0m@31g/t Au (94-100) 38m@0.3g/t Au (186-224) Incl. 14.0m@0.53g/t Au (186-200) 600m 34m@0.66g/t Au (240-274) Incl. 14.0m@1.25g/t Au (200-254) 2m@0.65g/t Au (294-296) 6m@0.38g/t Au (330-336) 4m@2.28g/t Au (346-350) 10.0m@13.67g/t Au (124-134) Incl. 2.0m@64.6g/t Au (132-134)
700m
600m
500m
500m
400m
400m
300m
300m
Legend:
Lithology Saprolite Metasandstone (undifferentiated) Metaconglomerate Metasandstone interbedded with Metapelite Feldspatic Metasandstone (silicified) Mineralization Strong Hydrothermal Alteration Weak Hydrothermal Alteration Quartz Vein Hydrothermal Fresh/Oxidized Pyrite Alteration Sericite Assemblage: Hematite Kaolin Geological Contact
SF-490
Diamond Drill Hole
RESERVE PIT
RESOURCE PIT (2008)
Figure 11-2
Aura Minerals Inc.

0 50 100 Metres 150 200
So Francisco Mine
Cross Section 550S

June 2009 Source: Yamana Gold Inc, 2009.
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12 SAMPLING METHOD AND APPROACH

Concerns about the known nugget effect in the deposit have resulted in various sampling and sample preparation protocols since exploration began in the 1990s. Santa Elina drilled HX (76.2 mm diameter) and NQ (47.6 mm diameter) holes in order to obtain samples of sufficient size. Both core sizes were sampled in two metre lengths, but only half the HX core was sent for analysis while the whole NQ core was submitted. SBMM continued this methodology, but in 2007 retained one-quarter of the NQ core as an archive. Currently, diamond drilling is carried out using HQ rods, and the core (63.5 mm diameter) is sawn in half for assaying.
Some reverse circulation (RC) drilling has been carried out both by Santa Elina and SBMM. In this case, two metre samples were collected using a cyclone at the drill rig and a splitting device under the cyclone. A portion of the sample was dried and sent for analysis and a portion was retained on site.
The current methodology of sampling drill core and the open pit benches by SBMM are described below. DIAMOND DRILL CORE 1. Core is placed in labelled boxes at the drill site and the boxes are transported to the logging facility. 2. Sampling/assay intervals are generally two metres in length but can be shorter to respect geological boundaries. 3. Sample numbers are assigned to the intervals. In-house and certified standards and locally collected blank samples are inserted into the sample stream. No duplicate drill samples are sent for analysis. 4. Core is photographed by digital camera. 5. Core samples are cut in half, with one half sent for assay and the other half stored on site. The core samples are placed in bags and then in 36 L plastic containers to be shipped to the SGS Geosol Laboratrios Ltda. (SGS) in Belo Horizonte.
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The amount of core recovered from each logged interval is recorded in the drill logs. No overall core recovery statistics were reviewed, but from the inspection of a number of drill logs and visual inspection of split core from several drill holes, it is estimated that there is better than 95% overall core recovery. In Scott Wilson RPAs opinion, the sampled core should provide an adequate reflection of the overall mineralization in the mining operation but will not provide good local values due to small sample size.
GRADE CONTROL SAMPLING Smee (2008) reports that several generations of drilling patterns and drills have been used to attempt to obtain a representative sample over a 10 m bench height. Initial drilling used a blasthole drill, with the entire sample being taken to the laboratory for processing. This produced a huge sample that could not be handled adequately by the laboratory in a timely fashion. The present sampling is done with a Maxi-drill (small diameter) spaced on a 5 m x 10 m grid (ore) and 5 m x 20 m grid (waste) in the pit.
1. A drill grid (5 m x 10 m or 5 m x 20 m) is laid out on the mine bench. 2. A Maxi-drill, which is a small RC drill with cyclone collector, drills a 10 m hole, with the first metre drilled discarded for fear of contamination from the previous sample, disturbance of surface of the bench being drilled, and loss of material inside the hole as no casing is used for these holes. In the event the Maxi-drill is not available, a converted construction hammer drill is used. 3. The entire sample is collected in two metre intervals in plastic bags mounted on the bottom of the cyclone.
4.
The samples are sent to the laboratory for the Knelson gravity concentration processing protocol.
The number of samples can be a problem as the drill can produce more samples than the laboratory can process efficiently and produce useful analytical data. Currently, the lab can only process ten to fifteen 15 kg samples per day through the gravity concentration line.
Scott Wilson RPA is of the opinion that the sampling methodologies for the diamond drill core at So Francisco conform to industry standards but recommends that duplicate
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core samples be also analysed. Generally, drill core duplicates are introduced for less than one in 100 samples and they should be carefully selected to represent different ore types, alternation styles, and rock competency. Although there is a general reluctance to submit the second half of the core which has been retained for reference, the purpose of analyzing the second half of the drill core is to compare the result with that of the primary sample. This comparison will provide an understanding of variability introduced by selecting one half of the drill core versus the other. The study of drill core duplicates will monitor whether the current sample size is effective and that alternative drilling or sampling techniques are required, such as larger diameter drill core.
Scott Wilson RPA observed problems with the grade control sampling in that fine material was lost at the top of the holes and from the stack on the drill. As well, due to broken ground beneath the bench, some holes returned very little sample. SBMM
commented that only samples of 50% to 100% of the expected weight were analyzed. Smee (2008) also comments on loss of fines and further recommends that blasthole chip sampling and logging replace the current grade control drills. The blastholes are drilled on a 3.5 m x 4 m grid and would provide much denser and therefore superior grade and geology information for grade control requirements. The Smee report recommends that an industry standard skirt be fitted around the drill stem and that pie sampling boxes be used to sample the resulting piles of drill cuttings. This methodology is expected to produce 15 kg samples which would be split to one kilogram size in order to improve the sample preparation time in the laboratory.
Scott Wilson RPA concurs with the Smee recommendations, but recommends that an initial study to compare the accuracy of analyzing the complete sample versus the 15 kg and one kilogram sample splits.
It is noted that blasting and mining proceeds very soon after a series of blastholes are completed on a bench. Sampling of the blastholes may provide a better result for grade control, but the assay information may not be available in time to guide the selective removal of the ore and waste. In this case, it may be required to only sample a portion
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(e.g., every second hole) of the blastholes or to increase the capacity of the sample preparation facilities in the mine laboratory.
Aura Minerals plans to fully review all sampling systems and protocol once it assumes control of the operation.
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13 SAMPLE PREPARATION, ANALYSES AND SECURITY

DIAMOND DRILL CORE SBMM uses SGS (ISO 9001:2000) in Belo Horizonte for sample preparation and assaying of exploration and delineation drill core from So Francisco Mine. Core
samples were delivered to the laboratory in sealed batches by truck to Cuiab and then sent by air to Belo Horizonte. Certified standards and blanks were used for quality control purposes. Core duplicates, coarse reject samples, or duplicate pulp samples were not submitted.
A corporate report on the 2008 exploration drill program showed that 40 certified standard samples and 40 blanks were submitted with exploration drill samples from the So Francisco area in 2008 at a rate of one standard and one blank for every 30 samples submitted. During 2008, a total of 11 sample batches were submitted to the laboratory.
To account for coarse gold in samples from areas with high hydrothermal alteration, a screen fire assay is used. A fire assay is completed on samples from areas with low to medium alteration. The details of the procedures used by SGS for So Franciscos surface exploration sample preparation and assaying are as follows:
1. A submittal form is filled out by a So Francisco geologist or technician and delivered with the samples to SGS. 2. Samples are sorted, logged in, opened, and dried at 110C as required. 3. The entire samples are crushed in a jaw crusher to better than 95% passing 10 mesh. Crushers are cleaned with compressed air between every sample and with quartz sand every 40 samples. Granulometric checks are done every 20 samples. 4. Fire Assay 4.1. A 1,000 g crushed subsample is taken by a riffle split. The split is pulverized using a steel ring mill to better than 95% passing 150 mesh. Granulometric checks were done every 20 samples. Pulverizers were
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4.2.
cleaned with compressed air between every sample and with quartz sand every 40th sample. Standard fire assay (FA) methods using 50 g pulp samples are used to determine total gold content.
OR Screen Fire Assay 4.3 Each sample weighing approximately 6 kg is pulverized to 150 mesh and then sifted with a 100 mesh plastic sieve. The coarse fraction generally weighs between 30 g and 50 g. In this case, the coarse fraction is analyzed in total and the fine fraction is assayed in triplicate after homogenization. Standard fire assay (FA) methods are used to determine total gold content.
4.4
5. The sample, fluxes, lead oxide litharge, and silver are mixed and fired at 1,050 so that the precious metals report to the molten lead metal phase. The samples are removed from the furnace and poured into molds. The slag is then removed from the cooled lead button and the button is placed in a cupel and fired at 950 to oxidize all the lead and render a precious metal bead. 6. The beads are weighed and digested in nitric and hydrochloric acid to take the precious metals into solution. The sample solutions are analyzed by ICP-ES. For metallic assays, the coarse fraction is assayed in total and an aliquot of the fine fraction is analyzed. The gold concentration of the entire sample is determined by weighted average. Scott Wilson RPA is of the opinion that the sample preparation and assay procedures used for the exploration and delineation drill core samples are in keeping with industry standards and can be used in the estimation of mineral resources and mineral reserves. However, it is strongly recommended that coarse crush duplicates, core duplicates, and pulp duplicates be analyzed and the results considered prior to completion of the resource estimation database. This information will allow the assessment of sample preparation, sample size, and accuracy of the primary laboratory.
GRADE CONTROL SAMPLING The following procedure (Figure 13-1) is used by SBMM for grade control sample preparation and assaying:
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1. Samples are sorted, logged in, opened, and dried if necessary. 2. The entire hole sample is bagged in separate bags, and each bag is screened to 2 mm, with the undersize placed in the original plastic bag and the oversize collected into a separate plastic bag. The oversize is crushed to -2 mm, then combined with the undersize and weighed. 3. The sample bags are then processed through a large Knelson concentrator, with the lights flowing into a discharge where they are sampled randomly as the samples are being processed, and the heavies washed to a single bag once the processing is completed. The split of lights are filtered and sub-sampled and the heavies are further concentrated in a small Knelson that produces a concentrate of the large gold particles in the sample. 4. The concentrate is assayed in its entirety, and the fines from the second Knelson are pulverized and assayed in triplicate. 5. The light portion from the large Knelson is dried, weighed, divided in a rotary divider, pulverized in an LM-2 machine, sub-sampled again and assayed in duplicate. This process produces at least six assays per sample, which are then combined to produce a final grade for a single hole.
Scott Wilson RPA is of the opinion that the sample preparation and assay procedures used for the grade control samples produce adequate results but are too slow to be of practical use to the mining operation. Either the lab will have to be expanded to handle more samples or an alternative sample technique, such as suggested by Smee (2008), will have to be put in place.
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Sample
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Figure 13-1
Aura Minerals Inc.

Screen

Crusher
So Francisco Mine
Sample Preparation Flow Sheet Grade Control Samples
Dry
Weight
Knelson 10
Reject
Concentrate
Split
Screen
Screen
Knelson 3
Filter Press
Concentrate
Filter Press
Dry
Weight Dry Dry Split
Weight
Weight
Fire Assay
Split
Pulp
Gravimetric Finish
Pulp
Fire Assay AA Finish
Weight
Fire Assay AA Finish
Final Result
June 2009
Source: Yamana Gold Inc, 2009.
13-4
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SAMPLE SECURITY
Samples were handled only by SBMM and Yamana authorized personnel. Samples from the mining operation are delivered by the mine geologist or technician directly to the mine laboratory each day upon completion of the underground sampling. All drill core from underground drill holes is taken directly to a drill logging and sampling area within the secured and guarded mine property by authorized mine or exploration personnel. The mineralized core intervals are photographed, logged, and sampled; and the samples are delivered directly to SGS in Belo Horizonte.
Each sample is assigned a unique sample number that allows it to be traced through the sampling and analytical procedures and for validation against the original sample site. The second half of the split core is stored on-site as a control sample, available for review and re-sampling if required. Based on our review and discussions with Yamana
personnel, Scott Wilson RPA is of the opinion that sample security procedures at So Francisco are in keeping with industry standards. However, it is noted that the core logging and storage area on the mine property is in a central location and is accessible to all passing employees and visitors. It is recommended that the core compound be
enclosed in a security fence and that access is restricted to appropriate employees.
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14 DATA VERIFICATION
So Franciscos drill samples were submitted to SGS in Belo Horizonte for sample preparation and assaying. Assay certificates are electronically transmitted to the mine. Upon passing quality assurance and quality control (QA/QC) protocols, the results were downloaded into the database.
Part of the resource database and the nine 2008 drill log files were reviewed by Scott Wilson RPA for accuracy of assay transcription from the assay certificates. No
significant errors were noted. As well, a report detailing the results of the assay standards and blanks for the 2008 drill core was reviewed. Four standard materials with gold grades ranging from 0.41 g/t Au to 5.99 g/t Au were purchased from Geostats Pty Ltd. Blank material was collected locally from barren quartz veins. So Francisco procedures appear to identify assay failures when blanks and/or standards fail to pass set criteria. The failure threshold for standard materials is set at two standard deviations, which meets industry practice. In the case of the first threshold, at two standard deviations plus 10%, the laboratory is notified of the variance. If the variance exceeds three standard
deviations, the entire sample batch is reanalyzed. The failure threshold for blanks is set at 25 ppb, which corresponds to five times the assay detection limit for gold. Although SGS was notified of variances exceeding the lower threshold on two standard samples and the 25 ppb threshold on two blank samples in 2008, it was not necessary to reanalyze any samples.
Scott Wilson RPA requested drill logs, collar and downhole surveys, as well as assay certificates for nine of the drill holes drilled in 2008. All standard data were found to be correctly entered onto the drill logs. One missing set of collar coordinates was noted. Examination of split core in the core shed confirmed that lithologies and sample depths were accurately recorded in the drill logs.
Based on our data review and discussions with So Francisco personnel, Scott Wilson RPA is of the opinion that data entry and verification procedures of exploration data at
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the SBMM are in keeping with industry standards. It is noted that So Francisco geology department plans to acquire DHLogger in order to streamline the core logging process and reduce potential transcription errors. Scott Wilson RPA recommends that the
DHLogger QA/QC package be also purchased to allow automatic updates and verification of the incoming assay information.
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15 ADJACENT PROPERTIES
There is nothing to report in this section.
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16 MINERAL PROCESSING AND METALLURGICAL TESTING

The So Francisco mineral processing system is made up of a gravity concentration circuit combined with a multi-lift, heap leach operation. The General Process Flow Sheet is included as Figure 16-1. The higher grade ore, or Gravity Leach Ore (GLO), has a cutoff grade of 0.45 g/t Au and the marginal, or Dump Leach Ore (DLO), ranges in grade between 0.15 g/t Au and 0.45 g/t Au. A portion of the GLO (above 0.6 g/t Au) is processed by crushing, gravity concentration, and heap leaching of the discharge product. Ore grading between 0.45 g/t Au and 0.6 g/t Au is crushed prior to heap leaching. Marginal ore is normally processed by run-of-mine (ROM) heap leaching.
Crushing includes a three-stage open-circuit system, with an additional fourth stage closed-circuit, fine-crush system for the higher grade ore. Approximately 2.7 million tonnes of GLO and 4.5 million tonnes of DLO were processed in 2008. Approximately 2.1 million tonnes of the GLO was processed through a gravity concentrating circuit with the discharge being sent to the heap leach. Scott Wilson RPA recommends that a belt sampling system be installed in the crushing plant in order to determine the grade of crushed material sent to the gravity circuit and leach piles.
Average grade ROM ore is fed through a fixed grizzly and then into a jaw crusher via a vibrating grizzly feeder. The jaw crusher undersize material is sent to the tertiary crushing stage and oversize material is sent to a secondary cone crusher in open circuit. Crushed ore exiting the cone crusher is combined with the secondary undersize product and sent to tertiary scalping screens ahead of tertiary crushing. Oversize material from the tertiary screens goes to two tertiary cone crushers in open circuit. Crushed ore exiting the tertiary cone crushers is recombined with the tertiary screen undersize product and sent to the Wet Screen. The undersize from the Wet Screen is pumped to the main gravity circuit. Wet Screen oversize is combined with the gravity circuit tailings, dosed with lime for neutralization purposes, and is then sent to the truck load-out bin for transport to the leach piles.
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Higher grade ROM ore is stockpiled separately and batch processed through the main three-stage crushing plant. The tertiary screens and crushers are equipped with a
reversible belt that allows the three-stage crushed high grade ore to be diverted to a stockpile. The ore from this stockpile feeds a vertical shaft impact (VSI) quaternary crushing circuit. The -3 mm product from this circuit is slurried and pumped to a small high grade gravity circuit similar to the main gravity circuit. The tailings from the high grade gravity circuit are recombined with the main gravity plant tailings and main crusher +6 mm fraction prior to the lime addition step.
The final crushed ore product from the tertiary crushing stage is conveyed to the Wet Screen and screened at 6 mm. Screen oversize bypasses the gravity circuit and is recombined with gravity plant tailings for heap leaching. Screen undersize is pumped to dewatering cyclones where the underflow feeds a bank of Pan-American jigs. concentrate is sent to a Knelson concentrator. Jig
Jig tailings are combined with the
dewatering cone overflow, and sent to two spiral classifiers for dewatering. Dewatered classifier underflows are discharged to a conveyor belt for recombination with the Wet Screen oversize before being sent to heap leaching.
The Knelson concentrator tailings feed a rougher shaking table and rougher table tailings are discharged to the slimes dam. Concentrate produced from the rougher table is fed to a second cleaner shaking table to produce a concentrate and tailings for return to heap leaching via the spiral classifiers. Accumulated coarse gold concentrate from the Knelson concentrator is batch processed on the cleaner table to produce a final, directsmelting gold concentrate. classifiers. The table tailings are sent to heap leach via the spiral
Dewatered spiral classifier underflows discharge to the Wet Screen oversize material conveyor belt. Lime is added to this belt and the gravity tailings, lime, and Wet Screen oversize are mixed through several conveyor transfer points prior to discharge to the truck load-out bin. Samples for head grade determination are taken automatically using a belt sampler prior to entering the truck load-out bin.
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Diverted high-grade ore stockpiled after the tertiary crushing stage is conveyed to a vibrating scalping screen feeding a vertical shaft impact (VSI) crusher in closed circuit. Screen oversize feeds the VSI crusher. Screen undersize is re-pulped and pumped to the high-grade gravity circuit. The high-grade gravity circuit operates in a fashion similar to the gravity plant described above, but in a smaller scale plant.
At the heap leach area, both crushed and ROM ore are stacked using trucks and bulldozers. The leach pad is a multi-lift, single-use type pad. The basic components of the leach pad include a compacted earth foundation, a compacted soil sub-base, a 1.5-mm thick geomembrane liner, a cushion layer of material on top of the geomembrane, and a series of perforated plastic drainpipes, which are placed on top of the geomembrane, under the cushion layer during stacking, to collect leach solutions. Following stacking of the crushed and low-grade ROM ore, both ore types are irrigated with leach solution and the resulting gold-bearing solutions are collected in a lined pregnant solution pond prior to further processing for recovery of gold.
A carbon Adsorption/Desorption/Recovery (ADR) facility is used for gold recovery. The ADR facility includes a train of five, cascade-type, open-top up-flow carbon adsorption columns, a carbon desorption system, a carbon acid wash circuit, a precious metals recovery circuit that utilizes electrowinning, and a complete smelting system for dor bar production.
Gravity plant concentrates and the loaded cathode material from the carbon recovery plant are combined and smelted to produce a dor product.
Lined collection ponds and a solution detoxification circuit are included to handle the large amounts of seasonal rainfall. Excess solution is detoxified and then either
discharged, or used in the gravity circuit as make-up solution.
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ROM
Lime
Grizzly Screen Cone Crusher Jaw Crusher

Gravity Concentration Knelson Concentrators
DOR
Circular Jig Screen

Cone Crusher
Screen
Cone Dewatering
Pan American Jig Pan American Jig
16-4
Fine Crusher VSI
Wet Screen Wet Screen
Pan American Jig
Spiral Classifier
Concentrate (to smelter)
Tailings Dam
(to leaching)
(to leaching)
Figure 16-1
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Aura Minerals Inc.

So Francisco Mine
General Flow Sheet

June 2009 Source: Yamana Gold Inc., 2009.
SCOTT WILSON RPA
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METALLURGICAL TESTING
Although metallurgical testing is ongoing, no recent testing has been completed since the testwork reported in the Technical Report by Mello and Petter (2008).
PLANT PRODUCTION
670,000 tonnes per month from January to August and dropped to approximately 520,000 tonnes per month for the remainder of the year. This occurred during the transition period during the switch to contractor haulage from owner operated trucks. Head grade varied between 0.39 g/t Au and 0.57 g/t Au depending on source of feed from the mine. The overall feed grade for 2008 was 0.459 g/t Au.
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TABLE 16-1 2008 PLANT PRODUCTION

Production Tonnes 622,841 612,554 663,980 619,522 646,342 661,114 775,377 735,783 517,536 601,589 473,913 500,352 7,430,903 Grade (g/t Au) 0.450 0.446 0.421 0.403 0.390 0.449 0.522 0.464 0.413 0.448 0.573 0.495 0.459 Gravity 27 29 21 22 23 32 28 28 24 22 27 30 26 Recovery (%) Heap 69 51 87 74 73 32 36 46 102 135 102 97 72 Total 71 55 88 76 75 42 44 53 101 100 78 76 70
Month January February March April May June July August September October November December Total
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17 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

MINERAL RESOURCES
SUMMARY For this report, Scott Wilson RPA has reviewed the Mineral Resource and Mineral Reserve estimates of the So Francisco Mine as reported by Yamana as of December 31, 2008. Scott Wilson RPA carried out a number of checks to verify the various procedures and numerical calculations used in the estimates. This included detailed tracing of the methodology of estimating tonnage and grade of resource and reserve blocks. With few exceptions, Scott Wilson RPA found that values and compilations of gold grades were accurately recorded and calculated as provided in block models and on cross-sections. Scott Wilson RPA, however, notes that although not critical, a minimum thickness was not applied to the mineralized structure in the estimation of Mineral Resources.
As part of this audit, Scott Wilson RPA carried out an independent estimate of the deposit to allow for comparison of the SBMM/Yamana estimates with the Scott Wilson RPA estimates, based on the data and wireframes provided.
The So Francisco deposit is a shear hosted and structurally controlled lode gold deposit which appears to be epigenetic and composed of one centimetre to five centimetre wide, sericitic quartz veins containing free gold. It occurs in a hydrothermal alteration zone within the basal Fortuna Formation which is composed of fine to coarse grained meta-arenites, with locally reddish metapelites and occasionally oligomictic metaconglomerates. The gold occurs as free gold and frequently as coarse nuggets measuring several millimetres in diameter with the quartz, as laminations along the fracture planes, and within limonite boxwork after pyrite and arsenopyrite. The ore is divided into two types (GLO and DLO) depending on gold content and processing method.
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The 2008 So Francisco Mineral Resources estimated by Yamana using a long term $900 gold price, total 41.2 million tonnes of Indicated Mineral Resources at an average grade of approximately 0.69 g/t Au inclusive of the Mineral Resources which have been converted to Mineral Reserves (Tables 17-1). Also using a long term $900 gold price, the deposit is estimated to contain some 751,000 tonnes of Inferred Mineral Resources at an average grade of approximately 0.8 g/t Au (Table 17-2).
Scott Wilson RPA concurs that the resources listed in Tables 17-1 and 17-2 are in accordance with the Mineral Resource/Reserve Classification as recommended by the CIM Committee on Mineral Resources/Reserves.
TABLE 17-1 INDICATED MINERAL RESOURCE ESTIMATE (DECEMBER 31, 2008)

Gold price (US$/oz) 800 Total 900 Total 1,000 Total 1,200 GLO DLO GLO DLO GLO DLO Zone GLO DLO Tonnes 17,570,000 23,602,000 41,172,000 18,742,000 26,408,000 45,150,000 21,056,000 32,018,000 53,074,000 23,529,000 41,727,000 65,255,000 Grade (g/t Au) 1.32 0.27 0.72 1.30 0.27 0.69 1.26 0.27 0.66 1.22 0.26 0.61 Gold (oz) 744,000 204,000 948,000 780,000 226,000 1,007,000 854,000 273,000 1,127,000 923,000 353,000 1,276,000
Total Notes: 1. Totals may not add correctly due to rounding. 2. CIM definitions were followed for Mineral Resources. 3. Mineral Resources were estimated using a GLO cut-off grade of 0.45 g/t Au and a DLO cut-off grade of 0.15 g/t Au. 4. Mineral Resources using the $900 gold price were estimated based on a long term total recovery of 58% for DLO and 81% for GLO. Mineral Resources are based on a unit mining cost of $1.70/t, a GLO processing cost of $2.75/t, a DLO processing cost of $1.22/t, and a unit G&A cost of $1.29/t. 5. No minimum mining width was used. 6. No cutting of high assay values was used. 7. Indicated Mineral Resources are inclusive of resources used to estimate Mineral Reserves. 8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Aura Minerals Inc. So Francisco Mine, Technical Report NI 43-101 Dated May 20, 2009; readdressed June 17, 2009, amended July 27, 2009
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TABLE 17-2 INFERRED MINERAL RESOURCE ESTIMATE (DECEMBER 31, 2008)

Gold Price (US$/oz) 800 Total 900 Total 1,000 Total 1,200 GLO DLO GLO DLO GLO DLO Zone GLO DLO Tonnes 160,000 250,000 410,000 311,000 440,000 751,000 733,000 1,147,000 1,880,000 7,300,000 17,600,000 24,900,000 Grade (g/t Au) 1.7 0.3 0.8 1.5 0.3 0.8 1.2 0.3 0.7 1.9 0.3 0.7 Gold (oz) 9,000 2,000 11,000 15,000 3,000 19,000 27,000 10,000 37,000 440,000 140,000 580,000
Total Notes: 1. Totals may not add correctly due to rounding. 2. CIM definitions were followed for Mineral Resources. 3. Mineral Resources were estimated using a GLO cut-off grade of 0.45 g/t Au and a DLO cut-off grade of 0.15 g/t Au. 4. Mineral Resources using the $900 gold price were estimated based on a long term total recovery of 58% for DLO and 81% for GLO. Mineral Resources are based on a unit mining cost of $1.70/t, a GLO processing cost of $2.75/t, a DLO processing cost of $1.22/t, and a unit G&A cost of $1.29/t. 5. No minimum mining width was used. 6. Cutting of high assay values was not used. 7. Inferred Mineral Resources do not include resources used to estimate Mineral Reserves. 8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
INTRODUCTION The methodology used by SBMM and Yamana staff on recently updated resource estimates includes: Statistical analysis and variography of gold values in the assay database. Construction of a block model using Vulcan software. Grade interpolation using Multiple Indicator Kriging.
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RESOURCE DATABASE AND VALIDATION
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Scott Wilson RPA received header, survey, assay, composite data, and solids for the So Francisco deposit from Yamana. The database comprised 507 drill holes with 90,595.69 m of drilling for an average drill hole length of 178.69 m. The database comprised 45,260 assay records totalling 90,578.44 m of assays for an average interval length of 2.00 m.
A total of 497 drill holes with 89,493.59 m of drilling from the database intersected the solids in the Yamana block models. The average length of intersecting drill holes was 180.07 m. The intersecting drill holes contained 44,709 assays of which 32,682 assays intersected the grade shells. The average assay interval was 2.0 m in the intersecting drill holes and also 2.0 m within the deposit solids.
All drill core, survey, geological and assay information used for the resource and reserve estimates is verified and approved by SBMM geological staff and maintained as an on-site database. A variety of validation queries and routines were run in Gemcom to help identify data entry errors. The database was found to be in good shape and no significant problems were noted. Scott Wilson RPA also verified a number of data records with original assay certificates and drill logs. No significant discrepancies were identified.
GEOLOGICAL INTERPRETATION
Based on alteration and mineralization characteristics, the following estimation units were defined: HGZ (High Alteration Zone): the volume containing significant hydrothermal alteration and usually associated with higher gold grades. LGZ (Low Alteration Zone): the surrounding volume that contains the HGZ and corresponds to weaker hydrothermal alteration and lower gold grades. Saprolite: the weathered material near the surface of the deposit. This unit is virtually mined out.
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Drill hole data, plotted on detailed cross-sections at approximately 25 m intervals including all assay data, provide the basis for the geological interpretation and estimation of average grades of resource blocks.
SBMM/Yamana developed 3D solids using Vulcan software from the mineralized outlines on the cross-sections. The wireframe models are created using 3D polylines that are snapped to the drill hole intervals. Polylines are created on cross-sections and are then joined together using tie lines, and the wireframes solids are validated. SBMM/Yamana constructed block models in Vulcan using the sub-block option to accurately reflect the 3D shape of the deposit. Scott Wilson RPA has reviewed the solids and agrees that the solids accurately represent the mineralized outlines.
ASSAY COMPOSITES
Drill holes were selected from a property-wide database and copied into files of samples that intersected the block model. The gold assays were composited into 2.0 m lengths for each domain. This length is much smaller than the 10 m x 10 m x 10 m model blocks. A total of 98.8% of the sample lengths was equal to or less than 2.0 m. Few composites shorter than one metre were produced. These were eliminated from the database.
GRADE CAPPING
Grade distributions for gold can be positively skewed and occasional outliers to the distributions could potentially affect the accuracy of the resource estimate. Yamana statistically examined the gold assay database for the presence of local high-grade outliers. Gold composites were also examined. Results were very similar to those of the assay analysis because most of the assay intervals are the same two-metre length as the composites. Gold composites within the block model showed a mean of 0.356 g/t Au, a median value of 0.05 g/t Au, with a minimum value of 0.00 g/t Au and a maximum value of 311.11 g/t Au.
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Yamana decided that grade capping was not appropriate for the resource estimation exercise. Previous resource reports (e.g., Mello and Petter, 2008) have stated that the reason is that high grade results are not considered a sampling error, but an event of low probability. Since they are part of the population they need to be taken into account when evaluating the deposit. Pitard (2004) recommended that any value, regardless of the value, should be used in the evaluation, since the gold distribution at So Francisco follows the Poisson distribution.
Yamana further asserted that any direct interpolation method can produce biased results, with very high block grades in the vicinity of a high grade sample. Multiple Indicator Kriging deals with this effect, because the probability of high grade is divided with the other probabilities, smoothing the grade distribution.
In Scott Wilson RPAs opinion, this treatment of the high-grade portion of the grade distributions is not common practice in the industry which mainly relies on grade capping or volume restrictions to limit the amount of influence of high grade values. In order to judge the effect of a normal grade capping strategy, Scott Wilson RPA ran an independent estimate with capping levels of 60 g/t Au for HGZ, 11.5 g/t Au for LGZ, and 6.0 g/t Au for Saprolite, which were developed from the cumulative probability plots for each unit. The comparison of the models with and without capped assays showed an 11% reduction in ounces in the GLO material and 5% in the DLO material, indicating metal at risk. Scott Wilson RPA recommends that a capping strategy be investigated and compared to the indicator kriging methodology, since reconciliation of the HGZ model with mine production shows the 2008 model is predicting higher grades than are achieved in practice.
ASSAY STATISTICS The statistical analyses that were carried out by SBMM/Yamana on the database included: Histograms with basic statistics.
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Log-probability plots. Variography
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Scott Wilson RPA tagged those assays to be included in the resource estimation. A total 32,682 assays were identified within the area to be estimated. Basic statistics for uncut gold assays on a zone basis are given in Table 17-3.
TABLE 17-3 SUMMARY OF ASSAY RECORDS

Zone HGZ (n=9,952) Mean Standard Deviation Coefficient of Variation Maximum LGZ (n=20,889) Mean Standard Deviation Coefficient of Variation Maximum Saprolite (n=1,841) Mean Standard Deviation Coefficient of Variation Maximum 0.843 4.818 5.711 311.11 0.121 0.704 5.795 42.27 0.442 1.306 2.953 36.70 Grade (g/t Au)
Table 17-4 shows the basic statistics for the uncut assay composites within the zone grade shells.
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TABLE 17-4 SUMMARY OF ASSAY COMPOSITES

Zone HGZ (n=9,956) Mean Standard Deviation Coefficient of Variation Maximum LGZ (n=21,019) Mean Standard Deviation Coefficient of Variation Maximum Saprolite (n=1,980) Mean Standard Deviation Coefficient of Variation Maximum 0.843 4.815 5.715 311.11 0.121 0.700 5.803 42.27 0.409 1.260 3.083 36.70 Au (g/t)
Yamana histograms for the HGZ, LGZ, and Saprolite zones are shown in Figure 17-1.
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High Grade Samples
.250
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.200
Frequency
.150
Number of Data: 10369 mean: .8769 std. dev.: 5.4368 coef. of var: 6.1997 maximim: 311.1100 upper quartile: .5600 median: .2400 lower quartile: .0800 minimum: .0000 weights used
.100
~6% of the Population >=2g/t

.050
.000 0.00 0.50 1.00 1.50 2.00
AU
Low Grade Samples

.600
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.400
Number of Data: 21863 mean: .1343 std. dev.: .7713 coef. of var: 57420 maximim: 42.2700 upper quartile: .1000 median: .0200 lower quartile: .0100 minimum: .0000 weights used
.300
.200
.100
~2% of the Population >=1g/t

.000 0.00 0.20 0.40 0.60 0.80 1.00
AU
Saprolite Grade Samples

.300
.200
Frequency
Number of Data: 1980 mean: .4017 std. dev.: 1.1080 coef. of var: 2.7586 maximim: 36.7000 upper quartile: .3700 median: .1400 lower quartile: .0300 minimum: .0000 weights used
.100
~9.5% of the Population >=1g/t
.000 0.00 0.20 0.40 0.60 0.80 1.00
AU
Figure 17-1
Aura Minerals Inc.

So Francisco Mine
Histograms of Samples HGZ, LGZ, and Saprolite Zones

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Scott Wilson RPA reviewed the results of the geostatistical analyses and notes that the analyses have been carried out and interpreted in a reasonable fashion, consistent with common industry practice. The software used to perform the analyses (GSLIB) is
commonly used and accepted throughout the mining industry.
BULK DENSITY Systematic drill core measurement programs have been completed at So Francisco Mine. Almost 1,500 pieces of drill core has been wax coated and bulk densities
determined from 54 drill holes spread over 25 drill sections. SBMM and Yamana chose appropriate bulk density values of 2.60 for HGZ, LGZ, and waste. A value of 2.46 was assigned to the Saprolite unit. Scott Wilson RPA agrees with the methodology for the collection and calculation of the bulk density measurements.
INTERPOLATION PARAMETERS AND BLOCK MODELS Gold grades were interpolated into blocks using Multiple Indicator Kriging, and appropriate parameters for each model unit. This technique has been successfully applied at So Francisco in past years. Indicators were chosen as shown in Figure 17-2. The results of the indicator variography are summarized in Table 17-5. The interpolation was done using an elliptical octant search in three passes in order to populate the individual solids with resource gold grades. A minimum of three and a maximum of 12 composites were required for interpolation, with no maximum number of composites for any drill hole or minimum number of drill holes. A minimum of two octants with a minimum of two composites and a maximum of six composites per octant were also required. The parameters for the block model were as follows: Block size: 10.0 m (E-W) x 10.0 m (N-S) x 10.0 m (vertical) Sub-blocks: 2.50 m x 2.50 m x 0.01 m. Bulk density: 2.60 g/cc (HGZ, LGZ), 2.46 (Saprolite). Primary search radii: (X, Y, Z) 20 m x 40 m x 10 m Secondary search radii: (X, Y, Z) 60 m x 120 m x 30 m Tertiary search radii: (X, Y, Z) 80 m x 160 m x 40 m
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99.99 99.9 99.8 99 98
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Au HGZ
0.4g/t
Cumulative Probability
95 90 80 70 60 50 40 30 20 10 5 2 1 .2 .1 .01 0.10
Indicator = 1
Indicator = 0
0.10
1.0
10.0
100.0
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AU
99.99 99.9 99.8 99 98
Au LGZ
0.1g/t
95 90 80 70 60 50 40 30 20 10 5 2 1 .2 .1 .01 .010 0.10 1.0
Indicator = 1
Indicator = 0
10.0
100.0
AU
99.99 99.9 99.8 99 98
Au Saprolite
0.2g/t 0.2g/t
95 90 80 70 60 50 40 30 20 10 5 2 1 .2 .1 .01 .010
Indicator = 1
Indicator = 0
0.10
1.0
10.0
100.0
AU
Figure 17-2
Aura Minerals Inc.

So Francisco Mine
Indicator Selection HGZ, LGZ, and Saprolite Zones

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TABLE 17-5 VARIOGRAPHY SUMMARY

Model
C0 - Nugget C1 1 Structure C2 2 Structure C3 3 Structure R1 1 Range X R2 2 Range X R3 3 Range X R1 1 Range Y R2 2 Range Y R3 3 Range Y A1 1 Range Z A2 2 Range Z A3 3 Range Z
rd nd st rd nd st rd nd st rd nd st
HGZ
Indicator 0.600 0.300 0.080 0.020 10 50 60 10 80 120 4 20 50 High Grade 0.520 0.400 0.050 0.030 10 20 30 10 30 60 5 20 25 Low Grade 0.430 0.300 0.200 0.070 10 100 140 10 120 500 10 40 60 Indicator 0.500 0.300 0.100 0.100 10 50 60 20 80 120 7 25 50
LGZ
High Grade 0.420 0.400 0.150 0.030 10 15 20 40 50 60 5 8 10 Low Grade 0.440 0.400 0.100 0.060 10 80 160 10 120 500 18 50 60 0.500 0.300 0.100 0.100 10 50 60 20 80 120 7 25 50
Saprolite
Indicator High Grade 0.420 0.400 0.150 0.030 10 15 20 40 50 60 5 8 10 Low Grade 0.440 0.400 0.100 0.060 10 80 160 10 120 500 18 50 60
Indicator Au 0.4 g/t
The variograms indicate very high nugget effect and short ranges as would be expected with a coarse gold deposit like So Francisco.
Cross and longitudinal sectional views of the deposit grades are shown in Figures 173 and 17-4.
Scott Wilson RPA notes that the second and final search volumes are based on a distance equating to three and four times the variogram range for each deposit. This large value could interpolate grades in blocks a significant distance from the drill holes unless limited by the constraining wireframe. In this case, the HGZ and LGZ model boundaries effectively limited the interpolation to reasonable distances based on geological interpretation. As well, much of the more distant tonnage is classified as Inferred
Resources during the classification process.
In Scott Wilson RPAs opinion, the search parameters used for the grade interpolation are acceptable but not consistent with common industry practice which would limit final search distances to one and a half or two times the range.
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recommends that in future models, the search distances are limited to 1.5 to 2 times the range.
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600 800
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1000
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End of 2008 Surface
700 Elev
$700 Design Pit
High Grade
$900 Pit Shell
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Low Grade
500 Elev
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400 Elev
Au g/t
0.00 0.15 0.45 0.15 0.45 1000.00
300 Elev
Figure 17-3
600 800
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So Francisco Mine
0
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40
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Metres
Block Model Grades on Cross Section 550S
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0 Elev
Au g/t
-250 Elev 0.00 0.15 0.45 0.15 0.45 1000.00 -250 Elev
Figure 17-4
3000
500
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Grade Distribution
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CLASSIFICATION OF THE MINERAL RESOURCES
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The resource blocks are classified by Yamana solely based on search volumes resulting from the variography of the HGZ, as shown in Table 17-6.
TABLE 17-6 MINERAL RESOURCE CLASSIFICATION PARAMETERS

Resource Category Measured Indicated Inferred Search Volume (m) 20 x 40 x 10 60 x 120 x 30 80 x 160 x 40 Percent of Variance 95 100 380
No minimum number of samples, drill holes, or octants is specified. All categories required geological continuity (the same domain) over the search distance.
Scott Wilson RPA recommends that samples from at least two drill holes are required for a Measured Resource classification and that the search volume for the Measured category is reduced to 10 m x 20 m x 5 m. Although this search volume is much smaller than that used by Yamana, the dimensions still represent ranges at approximately 90% of the variance of the HGZ zone. Normally, the range for the Measured Resource category is selected at 50% to 70% of the variance.
Based on a trial estimation by Scott Wilson RPA, this recommendation for smaller search dimensions and additional sampled drill holes will essentially eliminate the Measured Resource category at So Francisco. This finding is backed up by
reconciliation of monthly production, which shows significant grade variability, plus a Yamana conditional simulation study which returned grade variability exceeding 28% on a semi-annual basis. Current industry recommendations require 15% variance, nine times out of ten, on tonnages, grade, and metal content over three month periods. So Francisco variances currently exceed this standard.
Scott Wilson RPA has downgraded all resources currently classified in the Measured Resource category by Yamana, to the Indicated Resource category (Figure 17-5).
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However, this downgrading of the Measured Resources to Indicated Resources will not affect the economic viability of the operation, which is evaluated on the total of the Measured and Indicated Resources combined. The new classification will reflect the increased grade risk that appears to be showing up during mining.
Scott Wilson RPA recommends that pit mapping and grade control sampling results are included into future resource estimates in order to increase confidence in the grade estimates and resource classification for material immediately below the current pit floor. This close-spaced information will decrease grade risk and allow more reliable resource estimation, and potentially allow some material to be classified as a Measured Resource.
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1500 Elev
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500 Elev
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250 Elev
$900 Pit Shell

0 Elev
$700 Design Pit

0 Elev
Resource Class
Indicated Inferred
Figure 17-5
3000
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17-18
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Aura Minerals Inc.

Mato Grosso State, Mexico
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MINERAL RESOURCE SUMMARY
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Table 17-7 contains the Mineral Resources for the So Francisco Mine as of December 31, 2008.
TABLE 17-7 MINERAL RESOURCES (DECEMBER 31, 2008)

Gold Price (US$/oz) 800 Classification Indicated Inferred Indicated Inferred Indicated Inferred Indicated Inferred Tonnes 41,172,000 410,000 45,150,000 751,000 53,074,000 1,880,000 65,255,000 24,900,000 Grade (g/t Au) 0.72 0.8 0.69 0.8 0.66 0.7 0.61 0.7 Gold (oz) 948,000 11,000 1,007,000 19,000 1,127,000 37,000 1,276,000 580,000
900
1,000
1,200
Notes: 1. Totals may not add correctly due to rounding. 2. CIM definitions were followed for Mineral Resources. 3. Mineral Resources were estimated using a GLO cut-off grade of 0.45 g/t Au and a DLO cut-off grade of 0.15 g/t Au. 4. Mineral Resources using the $900 gold price were estimated based on a long term total recovery of 58% for DLO and 81% for GLO. Mineral Resources are based on a unit mining cost of $1.70/t, a GLO processing cost of $2.75/t, a DLO processing cost of $1.22/t, and a unit G&A cost of $1.29/t. 5. No minimum mining width was used. 6. No cutting of high assay values was used. 7. Indicated Mineral Resources are inclusive of resources used to estimate Mineral Reserves. 8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Scott Wilson RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant issues that would materially affect the Mineral Resource estimate. Scott Wilson RPA is also not aware of any mining, metallurgical, infrastructure, and or relevant factors that would materially affect the Mineral Resource estimate.
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MINERAL RESOURCE VALIDATION Validation of the block models by Yamana included:
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On-screen displays of plans and sections showing composite and block grades. Drift analysis calculated over slices across the strike of the deposit. For these analyses, the kriged grades were compared with the composite mean grades.
Scott Wilson RPA understands that the results of the above validation were satisfactory.
Scott Wilson RPA validated the block models for each zone. Cross-sectional plots were visually inspected to check the position of the solids and to compare the composite data on the drill holes to the block grades. No significant errors were noted. An inverse distance squared (ID2) estimate was independently completed on the $900 resource pit using verified grade shells. The results were compared with the Yamana indicator kriged totals (Table 17-8). As predicted by Yamana, it is apparent that direct interpolation does not produce satisfactory results. When reconciled against production, the Yamana estimate is a more accurate estimate than the inverse distance squared estimate containing fewer tonnes and ounces of gold and it appears to restrict the spread of gold from the scattered high grade values in the deposit.
TABLE 17-8 COMPARISON OF MINERAL RESOURCE ESTIMATES

Indicated Resources Tonnes 45,150,000 46,285,000 g/t Au 0.69 0.95 Gold (oz) 1,007,000 1,414,000 Inferred Resources Tonnes 751,000 106,000 g/t Au 0.8 0.4 Gold (oz) 19,000 1,400
Estimate Yamana Scott Wilson RPA
Note: Mineral Resources are estimated at a 0.15 g/t Au DLO cut-off grade and 0.45 g/t Au GLO cut-off grade.
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MINERAL RESERVES
Yamana compiled the LOM Plan schedule using Indicated Resources (Table 17-7). The process uses various software programs including Whittle 4D and a scheduling package, to determine and optimize the material converted to Mineral Reserves within an open pit. Detailed mine plans, gold price, ore types, mining and metallurgical recoveries, and cost information is considered during this process. The economic value of each potential mining block was calculated using a forecast long-term gold price of US$700/oz. These values were weighed against forecast costs and metallurgical
recoveries for each potential mining block and the resulting economically viable mine areas totalled to produce the Mineral Reserves.
The Mineral Resources not used in the reserve estimation process are compiled and reported by Yamana as Mineral Resources in addition to Mineral Reserves (Table 17-9).
TABLE 17-9 MINERAL RESOURCES (IN ADDITION TO MINERAL RESERVES)

Indicated Resources Tonnes 4,645,000 8,622,000 13,268,000 g/t Au 1.40 0.26 0.66 Gold (oz) 209,000 71,000 279,000 Inferred Resources Tonnes 290,000 420,000 720,000 g/t Au 1.5 0.3 0.8 Gold (oz) 14,000 3,000 18,000
Ore Type GLO DLO Total
Notes: 1. Totals may not add correctly due to rounding. 2. CIM definitions were followed for Mineral Resources. 3. Mineral Resources were estimated using a GLO cut-off grade of 0.45 g/t Au and a DLO cut-off grade of 0.15 g/t Au. 4. Mineral Resources using the $900 gold price were estimated based on a long term total recovery of 58% for DLO and 81% for GLO. Mineral Resources are based on a unit mining cost of $1.70/t, a GLO processing cost of $2.75/t, a DLO processing cost of $1.22/t, and a unit G&A cost of $1.29/t. 5. No minimum mining width was used. 6. No cutting of high assay values was used. 7. Indicated Mineral Resources are exclusive of resources used to estimate Mineral Reserves. 8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 9. Does not contain any Inferred Resources remaining within the pit (~30,000 t.) Aura Minerals Inc. So Francisco Mine, Technical Report NI 43-101 Dated May 20, 2009; readdressed June 17, 2009, amended July 27, 2009
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Figure 17-6 shows the US$900/oz Au Whittle resource pit shell (dark blue) with the final US$700/oz Au final reserve pit (cyan). The final reserve pit fits acceptably into the constraints of the resource pit shell. The final pit contains a small amount of Inferred Resources (30,000 tonnes at 0.8 g/t Au) which were treated as waste for the reserve determination.
The 2008 So Francisco Mineral Reserves reported by Yamana total some 31.9 million tonnes of Probable Mineral Reserves at an average grade of 0.71 g/t Au.
Scott Wilson RPA notes that the reserves listed in Table 17-10 are in accordance with the Mineral Resource/Reserve Classification as recommended by the CIM Committee on Mineral Resources/Reserves and are NI 43-101 compliant.
TABLE 17-10 PROBABLE MINERAL RESERVES (DECEMBER 31, 2008)

Ore Type GLO DLO Total Mineral Reserves Tonnes 14,097,000 17,785,000 31,882,000 Grade (g/t Au) 1.26 0.27 0.71 Gold (oz) 572,000 156,000 727,000
Notes: 1. Totals may not add correctly due to rounding. 2. CIM definitions were followed for Mineral Reserves. 3. Mineral Reserves are estimated at a GLO cut-off grade of 0.45 g/t Au and a DLO cut-off grade of 0.15 g/t Au. 4. Mineral Reserves are estimated using an average long-term gold price of US$700 per ounce and total recovery of 58% for DLO and 81% for GLO. 5. Mineral Resources are based on a unit mining cost of $1.70/t, a GLO processing cost of $2.75/t, a DLO processing cost of $1.22/t, and a unit G&A cost of $1.29/t. 6. A selective mining unit of 10 m x10 m x10 m was used. 7. Bulk density is 2.60 t/m3.
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N
$700 Reserve Pit
$900 Resource Pit
Figure 17-6
Aura Minerals Inc.

So Francisco Mine
Mineral Resource and Reserve Pits

June 2009
17-23
SCOTT WILSON RPA

PRODUCTION RECONCILIATION
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So Francisco Mine employs a mine call factor (MCF) as a measure for reconciling production of gold. The MCF, which averaged 80% for 2008, is calculated to represent the variance between the block model estimate and the accounted gold production from the mine and heap leach, respectively (Figure 17-7). The MCF for the higher grade crushed ore was only 68%, indicating only 68% of the expected gold was recovered.
Figure 17-8 shows the performance of the GLO over the past two years. While the tonnage of GLO has matched expectations from the block model and short term model, the recovered grade is consistently lower.
In Scott Wilson RPAs opinion, the MCF is not within an acceptable range, and should be improved in order to support the assumptions used for Mineral Reserve evaluation and mine planning purposes. At the end of 2008, the block model appeared to overestimate the amount of gold in the deposit, the sampling of benches in the pit was inadequate, part of the material sent to the heaps from the crusher was not sampled, and it is possible that an unknown amount of gold remains unleached in the heaps. Scott Wilson RPA recommends improvements to the pit sampling and crushed material sampling. More accurate pit sampling will allow a better comparison of long term model (mineral reserves) and the short term model (block model based on pit samples). Complete sampling of all crushed material will also improve the estimate of gold in the material sent to the heaps. Both of these measures as well as a new block model will enable better reconciliation of the Mineral Reserve estimate and the actual gold production.
However, any conclusions regarding the amount of gold contained in the mine production compared to the reserve estimate must take into account that the mine production is derived from calculations of the amount of gold and recovery in the heaps. This may not be a reliable estimate since the grade of part of the crushed material dumped on the heap and the actual gold recovery in the heap are not determined by sampling.
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Reconciliation January 1 - November 30, 2008

200,000
180,000 160,000
140,000
Au (oz)
120,000
100,000 80,000
60,000 40,000
20,000
77%
0
108%
68%
80%
Waste
DLO
Block Model
GLO (Jig/Crush Ore)

Actual
Total
Figure 17-7
Aura Minerals Inc.

So Francisco Mine
Production Reconciliation
June 2009
17-25
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550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000
GLO tonnes Block Model
GLO tonnes Actual
GLO tonnes Short Term Model
Tonnes
November
December
November November
June
January
January
June
July
July
September
2007
2008
2.00 1.80 1.60 1.40
GLO grade Block Model
GLO grade Actual
GLO grade Short Term Model
g/t Au
1.20 1.00 0.80 0.60
November
0.40
June
January
January
June
July
July
September
October
September
September
October
December
2007
2008
Figure 17-8
Aura Minerals Inc.

Mato Grosso State, Brazil January 1, 2007 - November 30, 2008
June 2009
So Francisco Mine
GLO Reconciliation
17-26
December
March
March
April
April
August
February
February
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SCOTT WILSON RPA
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18 OTHER RELEVANT DATA AND INFORMATION

No additional information or explanation is necessary to make this Technical Report understandable and not misleading.
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19 ADDITIONAL REQUIREMENTS
MINING OPERATIONS
MINING METHOD Mining at the So Francisco property is by the open pit method. The pit is accessed via a standard access road or ramp 15 m wide at a -8% grade which provides access to the various benches. The mine produced approximately 54,000 tonnes per day during 2008 which was made up of 8,000 tonnes per day of GLO, 12,400 tonnes per day of DLO, and 33,500 tonnes of waste. The open pit operations work two shifts per day at 10 hours per shift, with a six day work week, for 313 days per year, and the crusher circuit operates approximately 16 hours per day, seven days per week. The mine operation is designed to send approximately a steady feed of GLO, on a daily basis, to the gravity circuit (the highest grade material) while the run-of-mine DLO material goes directly to the leach pad together with the higher grade crushed DLO. The ore is hauled by 30 tonne haul trucks provided by a contractor (Fagundes Engenharia e Minerao Ltda).
Test holes for grade control purposes are three inches in diameter and are drilled on a 5 m x 10 m pattern in the HGZ and 5 m x 20 m elsewhere. Recovery, gold grade, and percentage of coarse material are recorded. Production drilling is carried out with 5.5 inch diameter holes and patterns for waste and ore of 5.5 m x 4.5 m and 3.5 m x 4.5 m, respectively. Standard bench height is 10 m, with one metre of sub-grade drilling for floor control. The bottom seven metres of the blastholes are loaded with emulsion type explosives and a three metre stemmed collar is left at the top of the hole.
The overall average stripping ratio is approximately 2:1 waste to ore. Ore and waste haulage is currently carried out by a contractor. A plan view of the designed open pit is shown in Figure 19-1.
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215,000 E
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Figure 19-1
Aura Minerals Inc.

So Francisco Mine Final Pit Design
357,000 N
357,000 N
356,000 N
356,000 N
100
200
300
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500
215,000 E
Metres
June 2009
Source: Independent Mining Consultants Inc, 2009.
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PREVIOUS ORE PRODUCTION
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Operations by Yamana started in 2006. Total production for the So Francisco Mine since mining commenced in 2006 is shown in Table 19-1.
TABLE 19-1 PREVIOUS PRODUCTION TO DECEMBER 2008

Year 2006 2007 2008 Total Tonnes 10,359,263 7,469,099 7,430,903 25,259,265 Grade (g/t Au) 0.58 0.54 0.53 0.53 Ounces Gold 81,381 104,763 75,937 262,081
In Figure 19-2, ramp up in Ore production from 2006 is shown, illustrating the consistency in monthly production from 2007 to December 2008.
FIGURE 19-2 HISTORIC ORE PRODUCTION

1,200,000
1,000,000
800,000
Production(Ore)Tonnes
600,000
400,000
200,000
April
April
April
July
July
September
September
July
September
February
February
December
December
February
November
November
2006
2007
2008
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January
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January
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SCOTT WILSON RPA

MINE DESIGN
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The So Francisco open pit design was completed by Independent Mining Consultants, Inc. (IMC) in support of a Feasibility Study completed by Kappes, Cassidy and Associates (KCA) of Reno, Nevada. The IMC work was completed in 2004 and included development of the mine plan and mine production schedule, including the design of waste rock storage areas, the mine equipment and labour requirements, and estimates for the capital and mine operating costs. The mine plan was developed to process about 4 million tonnes of crush/jig/leach ore (GLO) per year with a peak total material rate of 25 million tonnes per year. The ROM ore (DLO) was designed to be sent directly to the leach pad at a variable rate between 2.2 million and 3.9 million tonnes per year. The final pit design was based on a floating cone at a gold price of US$350/oz. The final pit design is shown in Figure 19-1.
Mining at So Francisco has progressed in a manner that closely follows the design established in the Feasibility stage. IMC designed a set of four mining phases for the So Francisco pit, and the pit as of December 31, 2008 is shown in Figure 19-3. Phase 1 was designed to provide about two years of crush/jig/leach ore in the highest grade, lowest strip ratio area of the mine. Phase 2 pushes the pit to the final wall position on the southeast side of the pit. It releases high grade material, but also has a high stripping ratio. Phase 3 would extend the pit to the northwest, midway to the final position, and Phase 4 completes the pit, extending to the final northwest wall position.
While IMC designed two waste rock storage areas, one southeast and the other northwest of the pit, the actual storage areas are in the southeast area and in the central area on the east side of the pit. The final pit will be approximately 1,800 m long in the northwest-southeast direction and 400 m wide in the northeast-southwest direction. The original planned pit bottom was at the 530 m elevation and was approximately at the 700 m elevation at the end of 2008. The total area that will be disturbed by the pit is about 65 ha.
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215,000 E
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Figure 19-3
Aura Minerals Inc.

So Francisco Mine
as of December, 2008
Plan View of the Open Pit
357,000 N
357,000 N
790 770 808 750
770
700 760
730
356,000 N
356,000 N
710 740
760
100
200
300
400
500
Metres
June 2009
215,000 E
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GEOMECHANICS, GROUND SUPPORT
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The So Francisco open pit has been producing only since 2006 and therefore mine operations are still relatively shallow. At the present time, there does not appear to be any concern with ground support. The final pit slope is presently planned at 53, which is a relatively shallow dip. While the rock has been folded and appears quite fractured, the pit walls appear stable. Scott Wilson RPA would recommend an initial desktop review of pit slopes to optimize this at the earliest time, to assess potential savings by reducing the stripping required.
LIFE OF MINE PLAN The base case Life of Mine (LOM) Plan for the So Francisco Mine is presented in Table 19-2. It includes GLO and DLO tonnes and grade reported from the designed pit provided by So Francisco based on 0.15 g/t Au DLO and 0.45 g/t Au GLO cut-off grades. For the base case, the split of GLO and DLO are the values reported through the Scott Wilson RPA query of the So Francisco pit, with the total ore tonnes and contained ounces being equivalent to the values provided by So Francisco. The waste amount of 69.4 million tonnes was provided by So Francisco and used for the base case. When Scott Wilson RPA reported tonnes and grade from the model, there was an additional 10.7 million tonnes of total material not reporting to the cash flow model. This is discussed below. For modelling purposes, the mine life average grade has been used in each year.
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TABLE 19-2 BASE CASE LIFE OF MINE PLAN

2009 Ore GLO DLO Total Ore 000 t g/t 000 t g/t 000 t g/t 000 t 000 t 3,600 1.26 4,078 0.27 7,678 0.74 15,687 23,364 2010 3,600 1.26 3,360 0.27 6,960 0.78 15,840 22,800 2011 3,600 1.26 3,360 0.27 6,960 0.78 15,840 22,800 2012 2,500 1.26 3,493 0.27 5,993 0.68 17,480 23,473 2013 797 1.26 3,494 0.27 4,291 0.46 4,521 8,812 Total 14,097 1.26 17,785 0.27 31,882 0.71 69,368 101,249
Waste Total Material
Stripping Ratio GLO&DLO combined GLO carrying all the waste
2.0 4.4
2.3 4.4
2.3 4.4
2.9 7.0
1.1 5.7
2.2 4.9
Mining over the 4.4 year LOM period would produce some 555,300 ounces of gold from 14.1 million tonnes of GLO plus 17.8 million tonnes of DLO. In total, some 69.4 million tonnes of waste will be removed for an average stripping ratio of 2.2:1 in the base case. Daily production will average approximately 23,300 tonnes of ore and 50,700 tonnes of waste over the base case LOM period.
While the IMC design produced a pit bottom at the 530 m elevation, the present design at a price of US$700/oz puts the pit bottom slightly lower at the 500 m elevation. The present pit bottom elevation is approximately 700 m elevation, which would mean mining the equivalent of about five benches per year over the LOM period of 4.4 years. This is shown in Figure 19-4, a longitudinal section showing the pit shells, current mining surface, and original surface profiles. Scott Wilson RPA has reviewed the pit design and believes that the design accurately depicts the parameters and cut-off grades envisioned.
Scott Wilson RPA examined the material movement forecast from the cashflow model and compared this with the estimated tonnage remaining within the current pit. Scott Wilson RPA notes that there are additional waste tonnes within the current pit block
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model that is not seen in the cashflow model. Scott Wilson RPA recommends that So Francisco Mine update their mine plan/production schedule, using the most current topography and most recently forecast LOM operating costs. The revised pit plan and associated production schedule should be examined to address the difference in total tonnage remaining to be moved.
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1500 Elev
1500 Elev
1500
2000
1250 Elev
1000
2500
500
1250 Elev
1000 Elev
1000 Elev
End of 2008 Surface

750 Elev
Original Surface
750 Elev
500 Elev
500 Elev
19-9
$700 Design Pit $900 Pit Shell

250 Elev 250 Elev
0 Elev
0 Elev
-250 Elev
-250 Elev
Figure 19-4
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Aura Minerals Inc.

-500 Elev -500 Elev
So Francisco Mine
100
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500
Metres
June 2009
Longitudinal Section Pit and Surface Profiles
SCOTT WILSON RPA

MATERIAL HANDLING
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Handling of the waste material from the pit was completed by a contractor utilizing 30-tonne capacity trucks, and in 2009 these will be replaced with 40-tonne trucks. At the end of 2008, the contractor was handling both the waste and ore haulage from the open pit. Scott Wilson RPA recommends examining the use of larger excavators and trucks which may prove attractive as haul distances increase. Larger units may maintain or reduce loading and haulage costs.
LOADING AND BLASTING A contractor operates an emulsion explosives plant on site, with Yamana supplying the materials. The contractor is responsible for mixing the explosives, transporting them to the bench, and loading the holes. The drilling pattern in waste is presently 5.5 m x 4.5 m. Scott Wilson RPA recommends investigating increasing the pattern size and the resulting fragmentation limits to reduce drilling and blasting costs, while still permitting effective haulage to the waste dumps.
ROAD MAINTENANCE The pit roads are maintained using two Caterpillar 140H graders. A water truck is also utilized to water the ramp and keep dust levels down, given the large number of trucks operating within the pit. Caterpillar D8 and D6 dozers are also used for spreading material on the stockpiles and any work required in the pit.
DEWATERING During the wet season, there is a need for high capacity pumping to keep the pit operational. During the Scott Wilson RPA site visit it was noted that the open pit had been down for two days due to excess water that required time to handle. Scott Wilson RPA recommends establishing the ramp access for a certain distance to the next bench elevation as each bench is developed and using it as an emergency sump, in an effort to limit the downtime caused by excess water.
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MAINTENANCE
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Maintenance is carried out by mine employees at the maintenance facilities located at the mine. The contractor is responsible for maintenance of its fleet of vehicles.
POWER Power for the operation is supplied via the national power grid that delivers power to the site at 138 kV, 60 Hz. The power cost at the end of 2008 was approximately $81/MWh, which is a combination of both the sales and distribution contracts. There are also two standby generators on site with two megawatt capacity each.
COMMUNICATIONS The site communications are provided via a microwave system that supplies telephone and Internet services for the operations and personnel.
MINE EQUIPMENT A list of the contractors mine equipment is provided in Table 19-3.
TABLE 19-3 MINE EQUIPMENT

Description Loader Loader Haul trucks Haul Trucks Pit Production Drills Bulldozers Graders Water Trucks Type Volvo EC420 Volvo EC700 Volvo 30T Volvo 40T Sandvik DP1500 Cat D6 Cat 140H Scania Number 5 2 29 10 4 3 2 2
The mining contractor, Fagundes Engenharia e Minerao Ltda, is adding some 40tonne capacity trucks to the haulage fleet to improve this phase of the operation. The Feasibility Study completed in 2004 by IMC included a haulage fleet made up of 48 Randon 430B trucks at 30-tonne capacity. During the site visit, Scott Wilson RPA noted
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that the queue lines were quite long, resulting in some lost time. The move to add larger capacity units will therefore help with this situation. As well, haulage distances will increase as the pit advances to the deeper benches. The contractor haulage rate is based on distance scale, and the rates as of the beginning of 2008 are shown in Table 19-4. The rates are adjusted on an annual basis.
TABLE 19-4 2008 CONTRACTOR HAULAGE COST

Distance (m) 0-500 501-1000 1,001-1,500 1,501-2,000 2,001-2,500 2,501-3,000 3,001-3,500 3,501-4,000 Price ($/t) 0.68 0.69 0.72 0.73 0.76 0.78 0.82 0.85 Diesel ($/t) 0.143 0.143 0.157 0.157 0.171 0.171 0.190 0.190 Total ($/t) 0.820 0.833 0.877 0.887 0.931 0.951 1.010 1.040
The average cost per tonne moved (mining and transportation) for the LOM Plan is $1.70/t.
MARKETS
The principal commodities at So Francisco are freely traded, at prices that are widely known, so that prospects for sale of any production are virtually assured. Scott Wilson RPA used an average gold price of US$754 per ounce (three year trailing average as of April 2, 2009) for the base case.
CONTRACTS
The company currently has several contracts including the haulage contract, the mine power contract, and the Collective Bargaining Agreement (CBA) with the local union. The haulage contract, based on prices for a 12 month period, is indicated in Table 19-4. The mine power contract is made up of a sales contract with Tractebel Energias
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Comercializadora Ltda. and a distribution contract with Centrais Eltricas Mato Grossenses S.A., or CEMAT, with nominal tension at 138 kV and 60 Hz. The price structure of the sales contract is shown in Table 19-5.
TABLE 19-5 SALES CONTRACT POWER RATES

Year 2006 2007 2008 2009 2010 2011 2012 Price ($/MWh) 29.1 34.4 37.2 38.9 41.2 42.2 42.7
The CBA signed with the Sindicato dos Trabalhadores nas Indstrias Extrativas de Mato Gross, or STIEMT, has a two year duration from May 1, 2008, until April 30, 2010. Shift schedules at the mine are 06:00 to 17:00 and 18:00 to 05:00 and workers average 210 hours per month. The labour rate was $246/month, with a 6% increase on May 1, 2008. Observed company/employee relations appeared to be good during the site visit in December 2008.
ENVIRONMENTAL CONSIDERATIONS
The environmental licence for the So Francisco Mine operation is valid until November 2009. Licences are posted on the government website www.sema.mt.gov.br. There are apparently no environmental liabilities or non-compliance issues for the property. There are no tailings generated as all the low grade material is sent to the heap leach pile and the leach solution is sent to the leach plant.
However, there is a historic aqueduct located on the south-southwest limit of the pit and the mine would be required to pay compensation to remove the historic feature and extend the pit to the south (for 150 m).
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The current mine budget includes approximately $12 million for reclamation and closure with $10 million of this amount is scheduled for the last year of the mine life.
TAXES
Scott Wilson RPA has relied on Yamana for guidance on applicable taxes, royalties, and other government levies or interests, applicable to revenue or income from the So Francisco Mine.
CAPITAL AND OPERATING COST ESTIMATES

Capital costs for the So Francisco Mine operation are indicated in Table 19-6. The capital cost for So Francisco averages about $4.9 million per year not including any reclamation and closure costs. This represents approximately $0.77/tonne of ore. Scott Wilson RPA has reviewed and is in agreement with the estimated capital costs.
The following is excluded from the capital cost estimate: Project financing and interest charges Owners costs Land acquisition, leases rights of way and water rights Permits, fees and process royalties Environmental impact studies Taxes Import duties and custom fees Cost of geotechnical investigation Working capital Sunk costs Pilot Plant and other testwork Exploration drilling Relocation of any facilities, if required Catering costs
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TABLE 19-6 CAPITAL EXPENDITURES

Area (US$ 000) Mine Development Mineral Rights Machinery and Equipment Cost Trucks and Vehicles IT & Communication Furniture and Office Equipment Building Cost Other Land Acquisition Technical Studies Reclamation and Closure Total Capital 2009 610 94 21 1,134 448 481 2,788 2010 2,380 30 14 815 209 481 3,929 2011 2,456 30 11 914 164 481 4,056 2012 2,000 5 300 50 481 2,836 2013 1,000 50 9,872 10,922 Total 8,446 154 51 3,163 921 11,796 24,531
The 2009 unit operating cost breakdown for the So Francisco Mine is shown in Table 19-7. The operating cost details for the LOM Plan are presented in Table 19-8.
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TABLE 19-7 2009 OPERATING COST BREAKDOWN

Area Mine (US$/t moved) Drilling Blasting Haulage/Loading/Auxiliary (Contractor) Diesel for Contractor General Mine Total Mine (US$/t moved) DLO ($/DLO t moved) GLO [including waste] ($/GLO t moved) Process ($/t leached) Stacking Leaching DLO Total ($/ DLO t leached) Crushing Gravity GLO Total ($/GLO t leached) G&A ($/t leached) DLO Total ($/ DLO t leached) GLO Total [including waste] (US$/ GLO t leached) Total [Averaged GLO, DLO] ($/t Ore leached, including waste) 0.36 0.86 1.22 0.52 0.47 2.21 1.13 3.78 11.00 4.35 0.16 0.21 0.68 0.23 0.15 1.43 1.43 7.66 Unit Costs
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TABLE 19-8 OPERATING COSTS
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Area Waste (tonnes mined) GLO (tonnes mined/leached) DLO (tonnes mined/leached) Total tonnes leached Mine All Material ($/t moved) GLO + Waste ($/GLO t leached) DLO ($/DLO t leached) Mine Average ($/Total tonnes leached) Plant GLO ($/GLO t leached) DLO ($/DLO t leached) Plant Average ($/Total tonnes leached) G&A ($/Total tonnes leached) Total Operating Cost ($/Total tonnes leached)
2009 15,687 3,600 4,078 7,678
2010 15,840 3,600 3,360 6,960
2011 15,840 3,600 3,360 6,960
2012 17,480 2,500 3,493 5,993
2013 4,521 797 3,494 4,291
Mine Life Average/Total 69,368 14,097 17,785 31,882
1.43 7.66 1.43 4.35
1.66 8.96 1.66 5.44
1.77 9.56 1.77 5.80
1.85 18.02 1.85 7.25
1.91 8.57 1.91 3.92
1.70 10.05 1.70 5.39
2.21 1.22 1.68 1.13 7.17
2.72 1.22 2.00 1.27 8.70
3.00 1.22 2.14 1.37 9.31
3.00 1.22 1.96 1.37 10.58
3.00 1.22 1.55 1.37 6.84
2.79 1.22 1.89 1.29 8.57
The operating costs provided by SBMM in Table 19-9 show an escalating cost per tonne mined and leached (due to increasing haul distances and consumables prices). SBMM used the 2009 costs for its reserve calculations. Scott Wilson RPA recommends using the most recently forecast long term LOM costs in future calculations.
MANPOWER
The manpower for the So Francisco Mine is shown in Table 19-10 below. The average manpower from January 1 to October 31, 2008, is indicated separately from the manpower as of November 2008, when the operating employees were reduced as a result of contracting out all material movement (including ore handling). Prior to November
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2008, only the waste handling (loading and haulage) was contracted out, with ore handling (loading and haulage) being done by SBMM employees.
TABLE 19-9 MANPOWER

Area Mine Plant Maintenance Administration Laboratory Security, Medical Total January to October 2008 159 73 89 49 23 11 403 November 2008 62 61 49 39 24 13 248
ECONOMIC ANALYSIS
A pre-tax Cash Flow Projection has been provided by Yamana from the LOM production schedule and capital and operating cost estimates, and is summarized in Table 19-10. Scott Wilson RPA generated a cash flow projection incorporating the additional waste removal required for the LOM. Scott Wilson RPA recommends that So Francisco adjust the LOM cash flow to reflect the cost of the anticipated additional waste removal. A summary of the key criteria is provided below.
ECONOMIC CRITERIA
REVENUE
The base case is mining approximately 75,000 tonnes per day mining (ore + waste) from the open pit (23.3 million tonnes per year). The requirement to move additional waste tonnage will increase the daily rates to approximately 23,300 tonnes for the ore and 58,500 tonnes for the waste for a total of 81,800 tonnes per day. Global metallurgical recovery averaging 76%. o GLO+Gravity recovery of 81%. o DLO recovery of 58%.
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COSTS
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Royalty of 1.0% of metal sales to the government and 0.5% to the land owner. Weighted average metal price: US$754 per ounce gold. This is the three year trailing average price as of April 2, 2009. Revenue is recognized at the time of production.
Mine life: 4.4 years. Life of Mine production plan as summarized in Table 19-2. Mine life capital totals US$24.5 million. The base case average operating cost over the mine life is US$8.57 per tonne (GLO+DLO) leached.
As stated above in the Mining Operations, Life of Mine Plan section, Scott Wilson RPA has identified an additional 10.7 million tonnes of waste that needs to be added to the base case production schedule provided by Yamana. The result is a negative effect in the mine life undiscounted NPV of $19.0 million and an increase the average operating cost of US$0.55/t.
CASH FLOW ANALYSIS Using the data provided by Yamana, the base case undiscounted pre-tax cash flow is $115 million. With the additional waste, the undiscounted pre-tax cash flow totals $97 million over the mine life.
The total base case cash cost is $482 per ounce of gold. The mine life capital unit cost is $55 per ounce, for a total production cost of $537 per ounce of gold. The total cash cost including the additional waste is $515 per ounce of gold. The mine life capital unit cost is $55 per ounce, for a resulting total production cost of $570 per ounce of gold.
Average annual gold production during operation is 127,000 ounces per year.
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The base-case NPV at a 7.5% discount rate is $100 million. With the addition of the additional waste this drops to $85 million.
SENSITIVITY ANALYSIS Project risks can be identified in both economic and non-economic terms. Key economic risks were examined by running cash flow sensitivities on the base case: Gold price Head Grade Recovery Operating costs (Total Cash Cost) Capital costs
NPV sensitivity over the base case has been calculated for -20% to +20% variations. The sensitivities are shown in Figure 19-5 and Table 19-11.
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Year 1 2009 Mining Ore Gold Grade Waste Total Material (Ore + Waste) Stripping Ratio 000 t g/t waste tpd 000 t 000 t (GLO & DLO combined) (GLO carrying all the waste) 7,678 0.74 50.12 15,687 23,364 2.0 4.4 Year 2 2010 6,960 0.78 50.61 15,840 22,800 2.3 4.4 Year 3 2011 6,960 0.78 50.61 15,840 22,800 2.3 4.4
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TABLE 19-10 BASE CASE PRE-TAX CASH FLOW SUMMARY

Year 4 2012 5,993 0.68 55.85 17,480 23,473 2.9 7.0 Year 5 2013 4,291 0.46 38.48 4,521 8,812 1.1 5.7 Total / Average 31,882 0.71 50.65 69,368 101,249 2.2 4.9
Process Tonnes Leached Gold Grade
000 t g/t GLO 000 t g/t DLO 000 t g/t 000 ozs
7,678 0.74 3,600 1.26 4,078 0.27 181.6 73.3% 78.4% 58.3% 74.5%
6,960 0.78 3,600 1.26 3,360 0.27 175.3 73.9% 80.7% 58.3% 77.0%
6,960 0.78 3,600 1.26 3,360 0.27 175.3 73.9% 80.9% 58.3% 77.1%
5,993 0.68 2,500 1.26 3,493 0.27 131.9 72.7% 84.4% 58.3% 78.3%
4,291 0.46 797 1.26 3,494 0.27 62.9 67.9% 89.2% 58.3% 74.2%
31,882 0.71 14,097 1.26 17,785 0.27 727 73% 81% 58% 76%
Total Contained Gold Recovery
% GLO+Gravity % DLO % %
Global Recovery Payable Gold
Gravity Circuit 000 ozs GLO 000 ozs DLO 000 ozs Total Payable Gold Revenue Au Price Gross Revenue Royalties Net Revenue Operating Costs Mining 000 US$ 000 US$ 000 US$ 000 ozs
9.0 105.5 20.8 135.2
23.8 94.1 17.1 135.0
24.5 93.6 17.1 135.1
32.5 53.0 17.8 103.3
17.1 11.7 17.8 46.6
107 358 91 555
754 101,971 1,530 100,441
754 101,778 1,527 100,251
754 101,894 1,528 100,366
754 77,909 1,169 76,740
754 35,172 528 34,644
754 418,723 6,281 412,442
1.5%
Processing G&A Total Operating Cost Unit Cash Costs
US$/t moved US$/t leached 000 US$ US$/t leached 000 US$ US$/t leached 000 US$ 000 US$ US$/t leached US$/oz
1.43 4.35 33,411 1.68 12,931 1.13 8,676 55,017 7.17 407
1.66 5.44 37,848 2.00 13,891 1.27 8,839 60,578 8.70 449
1.77 5.80 40,356 2.14 14,899 1.37 9,535 64,790 9.31 479
1.85 7.25 43,425 1.96 11,761 1.37 8,210 63,397 10.58 614
1.91 3.92 16,831 1.55 6,654 1.37 5,879 29,363 6.84 629
1.70 5.39 171,871 1.89 60,136 1.29 41,139 273,146 8.57 482
Operating Cashflow Operating Margin Unit Operating Margin
45,424 5.92 360
39,673 5.70 357
35,575 5.11 321
13,343 2.23 188
5,281 1.23 179
139,296 4.37 311
Capital Costs Total Capital Cost Unit Capital Costs
2,788 0.36 22
3,929 0.56 35
4,056 0.58 37
2,836 0.47 40
10,922 2.55 370
24,531 0.77 55
Cashflow Net Pre-Tax Cashflow Cumulative Pre-Tax Cashflow Economics Pre-Tax NPV discounted at
000 US$ 000 US$
42,636 42,636
35,744 78,380
31,519 109,899
10,507 120,406
(5,641) 114,765
114,765
2.5% 5.0% 7.5% 10.0% 12.5%
MUS$ MUS$ MUS$ MUS$ MUS$
$109 $104 $100 $96 $92
Aura Minerals Inc. So Francisco Mine, Technical Report NI 43-101 Dated May 20, 2009; readdressed June 17, 2009; amended July 27, 2009
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FIGURE 19-5 SENSITIVITY ANALYSIS
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$180
$160
$140
$120
$100
MUS$
$80 $60 $40 $20 $0 20%
AuPrice HeadGradeGLO
10%
Recovery GLO HeadGradeDLO
Base Case
Recovery Gravity
+10%
Recovery DLO CapitalCost
+20%
Operating Cost
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TABLE 19-11 SENSITIVITY ANALYSES

Parameter Variables Gold Price GLO Head Grade GLO Recovery DLO Head Grade DLO Recovery Gravity Recovery Total Cash Cost Capital Cost
Units $/oz g/t 000 ozs g/t 000 ozs 000 ozs $/oz $/oz
-20% 603 1.01 286 0.22 73 85 386 44
-10% 679 1.13 322 0.24 82 96 434 49
Base 754 1.26 358 0.27 91 107 482 55
+10% 829 1.39 394 0.30 100 118 531 60
+20% 905 1.51 429 0.33 109 128 579 66
NPV Gold Price GLO Head Grade GLO Recovery DLO Head Grade DLO Recovery Gravity Recovery Total Cash Cost Capital Cost
Units Million $ Million $ Million $ Million $ Million $ Million $ Million $ Million $
-20% 31 45 55 89 89 97 145 104
-10% 66 73 77 94 94 98 122 102
Base 100 100 100 100 100 100 100 100
+10% 134 127 122 105 105 101 78 98
+20% 168 155 145 111 111 103 55 96
As noted in the graph and table above, the So Francisco operation is most sensitive to the gold price and head grade, followed closely by the recovery and operating costs. Therefore in order to optimize the economics of the So Francisco mine operation the focus should be on the accurate determination of mine head grade and control and, if possible, reduction in the operating costs.
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20 INTERPRETATION AND CONCLUSIONS

EXPLORATION
Although potential for discovery of additional gold ounces remains at depth below the deposit, no exploration is planned at So Francisco in 2009.
GEOLOGY AND MINERAL RESOURCES

The So Francisco deposit is a shear hosted and structurally controlled lode gold deposit which appears to be epigenetic and composed of one centimetre to five centimetre wide, sericitic quartz veins containing free gold. It occurs in a hydrothermal alteration zone within the basal Fortuna Formation which is composed of fine to coarse grained meta-arenites, with locally reddish metapelites and occasionally oligomictic metaconglomerates. The gold occurs as free gold and frequently as coarse nuggets measuring several millimetres in diameter with the quartz, as laminations along the fracture planes, and within limonite boxwork after pyrite and arsenopyrite. The ore is divided into two types (GLO and DLO) depending on gold content and processing method.
The 2008 So Francisco Mineral Resources estimated by Yamana using a long term $900 gold price, total 41.2 million tonnes of Indicated Mineral Resources at an average grade of approximately 0.69 g/t Au inclusive of the Mineral Resources which have been converted to Mineral Reserves. Using a long term $900 gold price, the deposits are estimated to contain some 751,000 tonnes of Inferred Mineral Resources at an average grade of approximately 0.8 g/t Au. The Inferred Resources are in addition to the reported Mineral Reserves. With the exception not using a minimum width which is not critical, these resource estimates, in Scott Wilson RPAs opinion, are prepared in accordance with CIM definitions and are NI 43-101 compliant.
An inverse distance squared estimate was independently completed on the $900 resource pit using verified grade shells. The results were compared with the Yamana
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indicator kriged totals. As predicted by Yamana, it is apparent that direct interpolation does not produce satisfactory results. When reconciled against production, the Yamana estimate is a more accurate estimate than the inverse distance squared model, containing fewer tonnes and ounces of gold and it appears to restrict the spread of gold from the scattered high grade values in the deposit.
MINERAL RESERVES AND LIFE OF MINE PLAN

The 2008 So Francisco Mineral Reserves reported by Yamana total 31.9 million tonnes of Probable Mineral Reserves at an average grade of 0.71 g/t Au.
Scott Wilson RPA notes that the reserves are in accordance with the CIM definitions and are considered NI 43-101 compliant. The Mineral Reserves have been estimated using a cut-off grade of 0.45 g/t Au for GLO and 0.15 g/t Au for DLO.
The reported Mineral Reserve estimate is reasonable for the remaining LOM Plan.
From 2009 to 2013, it is planned to mine approximately 7.2 million tonnes per year at average grades ranging from 0.27 g/t Au to 1.26 g/t Au. In 2013, production drops to approximately 4.3 million tonnes per year due to ore depletion.
In Scott Wilson RPAs opinion, the Mine Call Factor (MCF) currently employed at the mine is not within an acceptable range, and should be improved in order to support the assumptions used for Mineral Reserve evaluation and mine planning purposes. A new block model and more accurate pit sampling will allow a better comparison of long term model (mineral reserves) and the short term model (block model based on pit samples). Complete sampling of all crushed material will also improve the estimate of gold in the material sent to the heaps. Both of these measures will enable better
reconciliation of the Mineral Reserve estimate and the actual gold production.
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However, any conclusions regarding the amount of gold contained in the mine production compared to the reserve estimate must take into account that the mine production is derived from calculations of the amount of gold and recovery in the heaps. This may not be a reliable estimate since the grade of the portion of the crushed material dumped on the heap and the actual gold recovery in the heap are not determined by sampling.
MINERAL PROCESSING
670,000 tonnes per month from January to August and dropped to approximately 520,000 tonnes per month for the remainder of the year. This occurred during the transition period during the switch to contractor haulage from owner operated trucks. Head grade varied between 0.39 g/t Au and 0.57 g/t Au depending on source of feed from the mine. The overall feed grade for 2008 was 0.459 g/t Au.
CAPITAL AND OPERATING COSTS

Yamana provided Scott Wilson RPA with capital cost for the LOM, and operating cost estimates for 2009 to 2013.
Major capital items include sustaining development, equipment replacement, plant expansion, building cost, and closure. Scott Wilson RPA reviewed the total capital cost estimate, which amounts to a total of US$24.5 million, and finds it to be appropriate.
Budget operating costs were reviewed, and used as the basis for projecting costs for the LOM. Based on the comparison of budget estimates with actual costs from 2008, the operating cost estimates were found to be appropriate, but additional operating costs will be incurred for removal of the additional waste. The average operating cost over the LOM, including mining, processing and G&A, is estimated to be $8.57 per tonne leached
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but will increase when the additional waste is accounted for. recommends this be addressed through a mine plan review.
www.scottwilson.com Scott Wilson RPA
ECONOMIC ANALYSIS
Using the data provided by Yamana, the base case undiscounted pre-tax cash flow is $115 million. With the addition of 10.7 million tonnes of waste, the undiscounted pre-tax cash flow totals $97 million over the mine life, averaging $22 million per year. The Base Case pre-tax Net Present Value of the Project discounted at 7.5% is $100 million, or $85 million with the inclusion of the additional tonnes of waste.
Positive results from the cash flow analysis support and confirm the material classified as Mineral Reserves.
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21 RECOMMENDATIONS
Scott Wilson RPA concurs with capital expenditures of $24.5 million estimated by Yamana for the period 2008-2013. This estimate consists of:
Machinery and equipment costs. IT and communications. Furniture and office equipment. Building costs. Technical studies. Reclamation and closure costs.
No exploration drilling is planned at So Francisco in 2009.
Other Scott Wilson RPA recommendations include:
Complete analysis of duplicate core samples from diamond drill holes. Generally, drill core duplicates are introduced for less than one in 100 samples and they should be carefully selected to represent different ore types, alternation styles and rock competency. Complete analysis of coarse crush duplicates, core duplicates, and pulp duplicates and consider the results prior to completion of the resource estimation database. This information will allow the assessment of sample preparation, sample size, and accuracy of the primary laboratory. Replace the current grade control drills with blasthole chip sampling and logging as suggested by Smee (2008). Due to problems with the grade control sampling, fine material was lost at the top of the holes and from the stack on the drill, and some holes returned very little sample. The blastholes are drilled on a 3.5 m x 4.0 m grid and would provide much denser and therefore superior grade and geology information for grade control requirements. Carry out an initial study to compare the accuracy of analyzing the complete pile of blasthole cuttings versus 15 kg and one kilogram sample splits. Smee recommended that pie sampling boxes be used to sample the resulting piles of drill cuttings. This methodology is expected to produce 15 kg samples, which would be split to one kilogram size in order to improve the sample preparation time in the laboratory. Scott Wilson RPA concurs with the Smee recommendation, but recommends an initial sample size study.
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Enclose the core compound in a security fence and restrict access to appropriate employees. Purchase DHLogger QA/QC package to allow automatic updates and verification of the incoming assay information. Install a belt sampling system in the crushing plant in order to determine the grade of crushed material sent to the gravity circuit and directly to leach piles. Investigate a capping strategy for gold values in the block model since reconciliation of the HGZ model with mine production shows the indicator kriging model is predicting higher grades than are achieved in practice. Limit search distances in future block models to 1.5 to 2 times the variogram range. Use samples from at least two drill holes for a Measured Resource classification and reduce the search volume for the Measured Resource category to 10 m x 20 m x 5 m. Include pit mapping and grade control sampling results into future resource estimates in order to increase confidence in the grade estimates and resource classification for material immediately below the current pit floor. Complete an initial desktop review of pit slopes at the earliest time, to assess potential savings by reducing the stripping required. Examine the use of larger excavators and trucks which may prove attractive as haul distances increase. Investigate an increase in the production drilling pattern size in waste (presently 5.5 m x 4.5 m) and the resulting fragmentation limits to permit more effective haulage to the waste dumps. The use of larger trucks may also prove attractive as haul distances increase, in an effort to maintain or reduce haulage costs. Use most recently forecast long term LOM costs in future reserve calculations instead of the current yearly costs. Review the mine plan to make the necessary adjustments based on a revised pit plan and production schedule and adjust the LOM cash flow to reflect the effects of the tonnes and grades of material in the revised mine plan.
The cost to implement the Scott Wilson RPA recommendations has not been included in this report since So Francisco is an operating mine and not an exploration project. If
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the recommendations are acted on to improve performance at the operation, then the cost and scheduling will be part of the normal operating budget of the mine.
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22 REFERENCES
Kappes, Cassiday & Associates, 2004, So Francisco Project Feasibility Study, Gravity/Heap Leach Gold Project, prepared for Yamana Desenvolvimento Mineral, S.A., November 2004. Mello, R., and Petter, R., 2008, So Francisco Mine, Serra da Borda Minerao e Metalurgia S.A. (SBMM), as at February 2008, NI 43-101 Technical Report by NCL Brasil for Yamana Gold Inc., February 2008, 125 pp. Pitard, F.F., 2004, Review of Sampling Systems and Sampling at the Yamana Gold Inc. Operations in Brazil, An Internal Report to Yamana Gold Inc. by Francis Pitard Sampling Consultants, March 12, 2004, 18 pp. Pitard, F.F., 2007, Review of Sampling Systems and Sampling Practices at the Yamana Gold Inc. So Francisco Operations in Brazil, An Internal Report to Yamana Gold Inc. by Francis Pitard Sampling Consultants, November 16, 2007, 12 pp. Silva, A.H., 2008, Geostatistical Simulation for Grades Uncertainty Assessment in So Francisco Mine, Understanding the Variability and the Coarse Gold Effect by a Simulation, An Internal Presentation to Yamana Gold Inc., 15 pp. Smee, B.W., 2008a, A Review of the Commercial and Mine Laboratories Used by Yamana Gold Inc., An Internal Report prepared for Yamana Gold Inc. by Smee and Associates Consulting Ltd., June 2008, 106 pp. Smee, B.W., 2008b, Results of a Grade Control Sampling Review and Mine Laboratory Audit So Francisco Mine, Mato Grosso, Brazil, An Internal Report prepared for Yamana Desenvolvimento Mineral S.A., by Smee and Associates Consulting Ltd., October 2008, 61 pp.
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23 DATE AND SIGNATURE PAGE

This report titled Amended and Restated Technical Report on the So Francisco Mine, Mato Grosso State, Brazil dated May 20, 2009, readdressed June 17, 2009, and amended July 27, 2009, was prepared and signed by the following authors:
(Signed and Sealed)
Dated at Toronto, Ontario July 27, 2009
Chester M. Moore, P. Eng. Principal Geologist
(Signed and Sealed)
Dated at Toronto, Ontario July 27, 2009
Normand L. Lecuyer, P. Eng. Principal Mining Engineer
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24 CERTIFICATE OF QUALIFIED PERSON

CHESTER M. MOORE I, Chester M. Moore as an author of this report entitled Amended and Restated Technical Report on the So Francisco Mine, Mato Grosso State, Brazil prepared for Aura Minerals Inc., dated May 20, 2009, readdressed June 17, 2009, amended July 27, 2009, do hereby certify that: 1. I am Principal Geologist with Scott Wilson Roscoe Postle Associates Inc. of Suite 501, 55 University Ave Toronto, ON, M5J 2H7. 2. I am a graduate of the University of Toronto, Toronto, Ontario in 1972 with a Bachelor of Applied Science degree in Geological Engineering. 3. I am registered as a Professional Engineer in the Province of Ontario (Reg. #32455016). I have worked as a geologist for over 35 years since my graduation. My relevant experience for the purpose of the Technical Report is: Mineral Resource and Reserve estimation, feasibility studies, due diligence, corporate review and audit on exploration projects and mining operations world wide Various advanced exploration and mine geology positions at base metal and gold mining operations in Ontario, Manitoba and Saskatchewan Director, Mineral Reserve Estimation and Reporting at the corporate offices of a former major Canadian base metal producer 4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI43-101. 5. I visited the So Francisco Mine, in Mato Grosso State, Brazil, from December 8 to 10, 2008. 6. I am responsible for all sections of the Technical Report, except section 19 and parts of Sections 1, 17, 20, and 21 not covered by Normand Lecuyer. 7. I am independent of the Issuer applying the test set out in Section 1.4 of National Instrument 43-101. 8. I have had no prior involvement with the property that is the subject of the Technical Report. 9. I have read National Instrument 43-101, and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.
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10. To the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.
Dated 27th day of July, 2009
(Signed & Sealed) Chester M. Moore, P. Eng.
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NORMAND L. LECUYER
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I, Normand L. Lecuyer, P.Eng., as an author of this report entitled Amended and Restated Technical Report on the So Francisco Mine, Mato Grosso State, Brazil prepared for Aura Minerals Inc., dated May 20, 2009, readdressed June 17, 2009, amended July 27, 2009, do hereby certify that: 1. I am Principal Mining Engineer with Scott Wilson Roscoe Postle Associates Inc. of Suite 501, 55 University Ave Toronto, ON, M5J 2H7. 2. I am a graduate of Queens University, Kingston, Canada, in 1976 with a B.Sc. (Hons.) degree in Mining Engineering. 3. I am registered as a Professional Engineer in the provinces of Ontario (Reg. #26055251) and Qubec (Reg. #34914). I have worked as a mining engineer for a total of 30 years since my graduation. My relevant experience for the purpose of the Technical Report is: Review and report as a consultant on numerous exploration and mining projects around the world for due diligence and regulatory requirements. Vice-President Operations for a number of mining companies. Mine Manager at an underground gold mine in Northern Ontario, Canada. Manager of Mining/Technical Services at a number of base-metal mines in Canada and North Africa. Vice-President Engineering at two gold operations in the Abitibi area of Quebec, Canada. 4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI43-101. 5. I visited the So Francisco Mine, in Mato Grosso State, Brazil, from December 8 to 10, 2008. 6. I am responsible for overall preparation of Section 19 and parts of sections 1, 17, 20, and 21 of the Technical Report not covered by Chester Moore. 7. I am independent of the Issuer applying the test set out in Section 1.4 of National Instrument 43-101. 8. I have had no prior involvement with the property that is the subject of the Technical Report. 9. I have read National Instrument 43-101, and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1.
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10. To the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.
Dated 27th day of July, 2009
(Signed & Sealed)
Normand L. Lecuyer, P.Eng.
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25 APPENDIX 1
TABLE 25-1 EXPLORATION AND MINING PERMITS
Aura Minerals Inc. So Francisco Mine, Brazil
Process Number 860937/1982 860938/1982 861146/1993 861609/1994 Total Status MINING PERMIT APPLIED MINING PERMIT EXPLORATION PERMIT APPLIED EXPLORATION PERMIT APPLIED Area (ha) 7,239.18 9,129.16 10,000.00 9,940.00 36,308.34
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Scott Wilson Mining

AURA MINERAL INC.

SCOTT WILSON ROSCOE POSTLE ASSOCIATES INC.

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LIST OF APPENDIX FIGURES & TABLES

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No exploration drilling is planned at So Francisco in 2009.

Other Scott Wilson RPA recommendations include:

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TABLE 1-1 BASE CASE PRE-TAX CASH FLOW SUMMARY

Process Tonnes Leached Gold Grade

Total Contained Gold Recovery

Global Recovery Payable Gold

9.0 105.5 20.8 135.2

23.8 94.1 17.1 135.0

24.5 93.6 17.1 135.1

32.5 53.0 17.8 103.3

17.1 11.7 17.8 46.6

107 358 91 555

754 101,971 1,530 100,441

754 101,778 1,527 100,251

754 101,894 1,528 100,366

754 77,909 1,169 76,740

754 35,172 528 34,644

754 418,723 6,281 412,442

Processing G&A Total Operating Cost Unit Cash Costs

Operating Cashflow Operating Margin Unit Operating Margin

000 US$ US$/t leached US$/oz

45,424 5.92 360

39,673 5.70 357

35,575 5.11 321

13,343 2.23 188

5,281 1.23 179

139,296 4.37 311

Capital Costs Total Capital Cost Unit Capital Costs

000 US$ US$/t leached US$/oz

10,922 2.55 370

000 US$ 000 US$

2.5% 5.0% 7.5% 10.0% 12.5%

MUS$ MUS$ MUS$ MUS$ MUS$

$109 $104 $100 $96 $92

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FIGURE 1-1 SENSITIVITY ANALYSIS

SCOTT WILSON RPA

-20% 603 1.01 286 0.22 73 85 386 44

-10% 679 1.13 322 0.24 82 96 434 49

Base 754 1.26 358 0.27 91 107 482 55

+10% 829 1.39 394 0.30 100 118 531 60

+20% 905 1.51 429 0.33 109 128 579 66

Units Million $ Million $ Million $ Million $ Million $ Million $ Million $ Million $

-20% 31 45 55 89 89 97 145 104

-10% 66 73 77 94 94 98 122 102