The Lily mine is a lode gold deposit along the faulted interface between the Figtree and Onverwacht groups of the Archaean Barberton greenstone belt. The Onverwacht metavolcanics are composed of talc and talc-carbonate schists derived from ultramafic precursors, while the Figtree metasediments comprise interbedded greywacke, shale and chert. The general trend is an east-west strike with asteep southerly dip. The shearing andmineralisation are parallel to the regional fabric. The gold mineralisation is structurally controlled and associated with fine grained pyrrhotite, minor arsenopyrite and chalcopyrite, and with quartz-carbonate veins.

Underground development and stoping utilise mechanised, long-hole drilling, blasting, mucking and hauling methods. Ore is hauled with mechanised equipment along specifically sized reef drives, hanging wall drives and ramps.

Lily Mine gold recovery affected by initial ‘lock up’ in new processing circuit at the Central Metallurgical Complex (“CMC”).

Production (stoping) operations at the Lily Mine commenced during the quarter and tonnage build-up continues to increase according to plan. Small scale initial production for Barbrook Stage 1 also commenced with ore from the Taylors Project, where ore is currently being sourced from a surface stockpile and treated through the CMC flotation circuit. Regional exploration programs are on-going, targeting additional mineral resources.