Falcao is situated over a structurally complex window on the eastern end of the Serra da Inaja Greenstone Belt.

The initiation of the drilling program follows detailed soil sampling, geologic mapping and an aeromagnetic and radiometric survey conducted in October last year, which confirmed a 300m to 600m wide zone at greater than 50ppb with isolated results as high as 13.5g/t gold (Au).

The objective of the current drilling program is to test the gold soil anomaly which is currently 4km long (open to the east) and varies from 200m to over 800m in width at values of +50ppb Au (partial leach, with ICP finish).

Ten drillholes between 200m and 300m depth have been spaced over a 4,700m strike extent to test the gold soil anomaly and its extension to the east.

The Falcao project is a JV between Horizonte Minerals and Anglogold which was signed in August 2010.

The JV agreement gives AngloGold the right to earn into 51% of the project by investing $4.5m over three years.

AngloGold has the option to obtain a further 19% interest, by funding a pre-feasibility study within three years of the vesting date.

Under the agreement, AngloGold was required to invest a minimum of $900,000 within the first year, a milestone that has already been achieved, and Horizonte is the operator until vesting is completed.