The Mahenge Project is hosted within a quartz–feldspar graphitic schist, part of a Neoproterozoic metasediment package, including marble and gneissic units. Two zones of graphitic schist have been mapped, named the Eastern Zone and the Western Zone. Mineralisation is believed to be the product of pre-existing carbonaceous sediments subjected to regional metamorphism induced by a north-south regional thrusting event. The graphitic schists contain between 3% and 25% Total Graphitic Carbon.

There is a high level of confidence in the geological interpretation, based upon lithological and structural logging of diamond drill core, and lithological logging of RC chips. Trenches cut orthogonal to the strike of the geology demonstrated the geometry of the deposit, and clearly showed graphitic mineralisation. Deposit scale geological mapping provide a geological framework for the interpretation. Geophysical models (VTEM) support the geological interpretation.

Drill hole intercept logging and assay results (RC and diamond core), structural interpretations from drill core and geological logs of trenches have formed the basis for the geological nterpretation. Assumptions were made on depth and strike extension of the graphitic schists, using drill hole and trench sample assays as anchor points at depth and at intervals along strike. Geological mapping also support the geological interpretation which supports the Mineral Resource estimate.

No alternative ........

Mining operations will commence in the Eastern Pit and move to the Western Pit in Year 6 through to the scheduled reserve exhaustion in Year 16. The average LOM strip ratio is expected to be 0.4:1 (waste to ore).

Mining will be undertaken via conventional drill and blast with the fleet comprising of an 80t backhoe excavator and 40t off-highway haul trucks. The BFS is based on a mining contractor scenario.

The Western Deposit consists of mining a strike length of 1,360m along the top of the ridge to a depth of 210m in the south, and the Eastern Deposit sits partially over a hill within a small valley and will be mined to a depth of 125m and the pit will have a strike extent of 350m.

Mining dilution and ore loss factors were applied based on weathering and the expected influence of blasting in these profiles. The mineralisation zones consisting of graphitic schist are up to 75m wide in the Eastern and Western zones.

Geotechnical parameters applied to the designs are based on investigations by George Orr and Associates.

Installation of hydraulic monitoring and depressurisation bores with ongoing geotechnical review will be required to ensure the long term stability of final walls. Minimum mining widths have been considered in the Western pit design.

The optimisation was undertaken using only the Measured and Indicated resource classifications. Inferred resource has been treated as waste. The Ore Reserve has bee ........

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