Within the Kobada project area, three types of gold occurrence may be expected:

- Primary lode gold mineralization associated with quartz veins and fault zones related to one or several Eburnean deformation phases.

- Lateritic deposits resulting from the climatic weathering and alteration of primary deposits with diffusion of the gold into mushroom-shaped red oxidation zones (saprolite);

- In placer deposits, where the gold is associated with large angular fragments of quartz and intensely silicified pyritic rocks in alluvial sand and gravel horizons usually several metres in thickness. These fragments are derived from proximal lode deposits.

On the Project, placers are present and have long been worked by “orpaillage” (artisanal gold surface exploitation).

The Kobada gold deposit appears to be a quartz-carbonate veined “mesothermal” gold deposit. It is located in arenites affected by a geological structure oriented NE along the border of an intermediate intrusive that has basic components.

Gold mineralization at Kobada was coeval with the hydrothermal events that introduced the quartz veins that are common throughout the area. The N20°E structures are the only regional structures that have been identified on the property in the field, the E-W and low angle features seem to be confined to the mineralised zone in-between discrete shear zones. It has to be noted that only very scant data is available outside the Kobada mineralised area so it is not possible to be certain that the E -W structures are not regional.

Mineralization at Kobada extends for a minimum strike of 4 km. Gold mineralization is associated with narrow, irregular, high-angle quartz veins and with disseminated sulphides in the wall rock and vein selvages. Mineralization occurs as free gold, sulphides present include arsenopyrite, pyrite and very rare chalcopyrite. Visible gold is not common in the Kobada deposit. Arsenopyrite (up to 5 mm) is localized near vein selvages and also as fine-grained disseminated patches within the host rock. Pyrite was noted in finely disseminated patches within the host rocks and as euhedral crystals in the black shale, generally as trace to 3% by volume with up to 10% locally in the wall rock over centimetre scale intervals adjacent to quartz veins.

Veins have a milky white colour, are generally discordant with a thickness ranging from millimetric to sub metric. Mineralized veins were usually described as narrow, high-angle quartz veins, either cross-cutting another vein or the main fabric. This indicates more than one generation of quartz veining is present, with a later phase resulting from remobilization of gold mineralization from an earlier hydrothermal event.

The Kobada deposit will be mined by conventional open pit mining methods utilizing 40 to 50 tonne articulated dump trucks and 5m3 excavators. The saprolite is a free digging rock mass, and there is expected to be only minor use of explosives in blasting some areas of the overlying laterite cap. All mining operations have been assumed to be completed by a mining contractor.

The mine production schedule is based on delivering 1.6 Mt of ore for processing per annum. Due to the relatively small size of the equipment proposed, there is opportunity to tailor the mining program to suit the ore processing and waste stripping schedule.

The treatment plant design incorporates the following unit process operations:

- Ore scrubbing and rejection of +40mm oversize;

- Screening and crushing (-40 to +1.18mm) with recycling of product to scrubber;

- A rougher and cleaner cycloning circuit to reject fines and pre-concentrate the feed;

- A coarse gravity circuit utilising Rougher, Scavenger and Cleaner InLine Pressure Jigs (IPJ);

- A fine gravity circuit utilising two Knelson batch centrifugal concentrators;

- A gravity tails dewatering cyclone circuit – for recycling process water;

- A tails storage facility (TSF) pumping and piping system, along with a TSF reclaim water pump and piping system;

- A gravity concentrate regrind circuit, comprising a ball mill in closed circuit with a cyclone to produce an 80% passing 125 micron grind size. Leaching in cyanide solution to increase leaching residence time;

- An intensive leaching reactor train processing the cyclone overflow, utilising InLine leach reactor drums, to maximise the gold leaching rate in high oxygen environment, providing a total of 10 hours leaching;

- A post leaching thickener to increase the slurry density feeding the leach residue belt filter;

- An AuRIX resin counter-current absorption column to extract the gold from the solution and return of barren solution to the process;

- A resin stripping, electrowinning and gold smelting system to produce dorè; and

- SO2 / Oxygen cyanide destruction circuit to reduce the tailings cyanide concentration to below the International Cyanide Management Code (ICMC) requirement.