The Waterloo deposit is a structurally modified komatiite-hosted nickel sulphide deposit located on the western limb of a south-plunging anticlinal fold (the March syncline). The folded greenstone stratigraphy is located at the southern termination of the Perseverance Granite.

The mineralisation is hosted by a metamorphosed and serpentinised high Mg olivine cumulate ultramafic that averages 40m thick and 120m wide and approaches the surface at the northern end of the deposit. The cumulate thins down plunge to 15-20m thick to the south. The mineralised ultramafic and surrounding stratigraphy strikes NNW and, dips west at 10 55 degrees and plunges SSE at 10-30 degrees. The hangingwall stratigraphy is a thick sequence of layered mafic epiclastics and komatiites while the footwall consists of felsic sediments, mafic tuff, pyroxenite and komatiites. The main style of mineralisation is disseminated and matrix Fe-Ni-Cu sulphides that form a liner ribbonlike zone approximately 30 m wide on the lower contact of the ultramafic unit. In areas where there is less structural and metasomatic overprint the mineralisation shows a gradual increase in sulphide abundance toward the basal contact suggesting a primary magmatic origin. Some massive sulphide is present but is commonly foliated with clasts of country rock, suggesting remobilisation.

The Waterloo mineralisation extends over a strike length of approximately 850m. Overall width in plan view is typically 40 to 45m and overall vertical extent is typically 30 to 50m. The individual domains vary in true thickness, the Massive zone being only 1 to 3m, the Matrix zone 3 to 5m and the broader disseminated and weakly disseminated zones typically being 5 to 15m. The Waterloo mineralised zone plunges towards (Local Grid) south at approximately 20° and overall extends from 80m below surface to 400m below surface.

The mineralisation as outlined and with a 1% cutoff applied represents an in-situ resource. An underground mining strategy would have to be applied to convert this to a reserve; this is considered outside the scope of the current mineral resource estimate.

No metallurgical factors have been applied to the in-situ resource. As the mine has already been in production, the application of these factors is appropriate at the reserve generation stage.