At Kipoi Central, both secondary and primary mineralisation has been identified, with the bulk of the mineralisation hosted by weathered and unweathered carbonaceous dolomitic siltstones and dolomites of the upper R4 sediments. Observations from non-oxidised core, show that mineralisation commonly occurs in moderately south dipping, cross cutting and bedding parallel veins, in the matrix of crackle and mosaic breccias and in the matrix of rubble breccias of a tectonic origin. Veins in the primary zone contain chalcopyrite, bornite and pyrite mineralisation with quartz calcite as the gangue minerals. However, these late stage veins are compositionally slightly different from the bedding-parallel disseminated or stratabound mineralisation which contain exclusively chalcopyrite.

The primary sulphide mineralisation at Kipoi Central has undergone oxidation with the copper being remobilised into joints, fractures and voids during oxidation. The main copper bearing minerals in the oxide zone are malachite with minor azurite, chalcocite, native copper and pseudomalachite (copper phosphate). Oxide mineralisation occurs partly as in situ replacement of stratabound sulphides, as coatings on bedding, cleavage and joint surfaces and as minor cavity infill mineralisation with strong enrichment of mineralisation observed near fault zones.

The Kipoi North deposit is located about 1km north of the Kipoi Central mine. Despite its proximity to Kipoi Central, the geology at Kipoi North differs significantly from other deposits (Kipoi Central, Kileba, Judeira) in the Kipoi Project area, as a result of deformation leading to the extrusion of evaporite material that facilitated large-scale fragmentation of the Mines Series rocks.

The mineralisation at Kipoi North, is predominantly secondary, stratabound and concentrated in the DStrat, RSF, and RSC units of the R2. In the DStrat, malachite occurs parallel to the thin laminated, silty dolomite layers. In the RSF, mineralisation occurs pervasively within the slaty layers of the rock, while the mineralisation in the RSC is associated with the dissolution vughs, veins and fractures that occur immediately and up to several tens of meters above the contact with the RSF. In KPN003, native copper was intersected between 99m and 110m.

The style of mineralisation at Kipoi North is typical of the predominant style of mineralisation in the Congolese Copperbelt Copper mineralisation in the DStrat, RSC and RSC is interpreted to correspond to the Lower Orebody. The extended occurrence of mineralisation at Kipoi North is attributed to the secondary re-distribution of mineralisation from a a much tighter primary source.

Kaminafitwe is located approximately 3.5km northeast of Kipoi Central and is defined by a few artisanal workings, covering an area of about 200m by 80m at the base of the northeast trending ridge.

The prospect area comprises an asymmetric, east to northeast trending anticline structure cored by interbedded stratified siltstones and calcareous siltstones. The northern limb of the fold is in contact with highly weathered silty shale intruded by several 1 to 4m wide mafic dykes. The dykes appear to form a dyke swarm, which is better developed near the contact with the siltstones. The shale unit is defined by grey reduced saprolitic clay, which becomes more oxidised and slightly ferruginous to the west. It shows a pervasive north to northeast trending and west to northwest dipping pervasive curved foliation, that is not present in the intrusive rocks. The dyke swarm extends over a width of approximately 40m. It is inferred that individual dykes may be iscontinuous however, the zone may extend beyond the area of artisanal workings.

Judeira is located approximately 4.5km northwest of Kipoi Central. The prospect area is located on a regional north-west trending topographic ridge that includes the locations of Kipoi Central and Kileba. The area is geologically mapped as undifferentiated Roan Formation undeRLying younger Mwashya Formation. The regional map suggests that the prospect area is located within the core of a northwest trending anticlinal structure or on the edge of a southwest tilted fold limb.

At Judeira, copper mineralisation is supergene being mainly malachite and appears to be located within fractured, fine laminated, vuggy, possibly stromatolitic silty carbonates in the hanging wall contact of the pyroclastic rocks. The footwall to the mineralisation appears to terminate against the highly talcose pyroclastic rock. The location of mineralisation associated with the lithological contact suggests a structural component to the mineralisation.

The area has been worked, in places, by artisanal miners whom exploited copper and cobalt oxide mineralisation by way of narrow shafts and stopes within the regolith zone.

Kileba is located approximately 7km south-east of Kipoi Central. The mineralisation is divided into a north-western and a south-eastern segment, with artisanal workings extending intermittently over a distance of about 1.1km.

At Kileba primary copper sulphide mineralisation occurs in the siltstones underlying an evaporitic unit and immediately above the pyroclastic unit. Core observations indicate that copper sulphide mineralisation occurs as disseminated stratiform/stratabound bands and layers of mineralisation overprinted by brittle ductile shear fabric and a quartz calcite-chalcopyrite filled matrix breccias. The mineralisation generally increases with the level of shearing. Minor vein-type and disseminated style of mineralisation is present in the footwall and hanging wall as minor and discrete deformation zones. At a prospect scale, mineralisation is interpreted to occur as steeply southwest dipping stratiform mineralisation, remobilised in part into a bedding parallel structurally controlled lode. The mineralised zone has an average true width of approximately 15m. From current artisanal workings, mineralisation occurs over a strike length of about 450m in a southeast direction and is open to the south, up and down dip.

Kileba South is a structurally controlled copper ore body, dipping steeply to the southwest with a strike length of 730m. The mineralisation includes copper sulphide mineralisation below the base of oxidation and copper oxide mineralisation above it. The depth of weathering is to about 120m vertical depth below surface. At depth, the sulphide mineralisation is structurally controlled and hosted by a regional northwest trending fault breccia. Above the base of oxidation, weathering of sulphides has led to lateral dispersion of secondary copper minerals, generating a supergene blanket 700m long by up to 130m wide, and 120m deep. The majority of the reported Mineral Resource resides within the oxide profile.

Detailed pit designs for the Kipoi Central open pit were completed based on new open pit optimisation studies using the revised parameters and resource model. This resulted in a two-staged development design for the open pit operations. The Kileba open pit has also been re-designed based on an updated open pit optimisation study with updated modifying factors.

With the recently completed Stage 1 mining operations having gone on for 4 years using selective open pit mining with close spaced grade control drilling, there has been a good reconciliation of ore mined with the resource model. Density determinations and quality control procedures developed have proven to provide adequate control. The reserves have been developed after consideration of the erstwhile practices.

Pit slope angles were based on geotechnical studies conducted by George, Orr and Associates, and reported in October 2012, and in conjunction with previous pit designs completed as part of the iterative planning process. In summary, for Kipoi Central, the wall design parameters comprise 10m vertical height benches, mined at face angles of 80° and 12m berms, with wider, 20m berms located at 50m vertical intervals on the final pit walls. Previous pit designs undertaken using these parameters and incorporating access ramps were used to measure overall slope angles as input into the pit optimisation studies. This resulted in overall wall angles of 30°, based on an inter-ramp slope angle of 33° with an allowance for one pass of a 25m wide access ramp on all sides of the pit.

For Kileba, the wall design parameters comprise 10m vertical height benches, mined at face angles of 80° and 10m berms, with wider, 20m berms located at 60m vertical intervals on the final pit walls.

Previous pit designs undertaken using these parameters and incorporating access ramps were used to measure overall slope angles as input into the pit optimisation studies. This resulted in overall wall angles of 35° on the north eastern wall accounting for a ramp in that wall and 40° on the eastern wall with no ramp.

Mining dilution is incorporated in the Mineral Resource model estimation hence no further mining dilution was applied. This is supported by current operations reconciliation data.

Mining recovery factors have been incorporated in the Mineral Resource model estimation hence no further mining recovery was applied. This is supported by current operations reconciliation data.

A minimum mining width of 30 m was used.

No inferred material was included in the conversion of Mineral Resource to Ore Reserves. All inferred material was treated as waste in the planning and reporting process.

The Stage 1 mining operations utilized a mining contractor, contracted laboratory and in-house expertise to manage the efficient exploitation of the orebodies. Accommodation, messing, survey, mine planning, laboratory and all necessary infrastructure has been established during the past 4 years. The existing infrastructure will be used in Stage 2 of the Project.

The Kipoi Copper Project processing plant consists of:
- Two stage crushing
- Scrubbing and Classification
- Sulphuric acid leaching of the fine ore in agitated leach tanks
- Counter Current Decantation (CCD)
- Tailings Disposal and decant return
- Sulphuric acid leaching of the coarse ore in a heap leach
- Solvent Extraction (SX) and
- Electrowinning (EW)

Leaching operations and the subsequent
production of cathode will be achieved at Phase 1 by treating HMS floats material and installing equipment required for the processes of Heap Leach, SX and EW.

In Phase 2, crushing and scrubbing equipment
will be installed so that run of mine material can be processed. The SX-EW capacity will be expanded to 50,000tpa through the addition of a second 25,000tpa SX train. A

Equipment installed at Phase 3 will be required for treatment of the fines component of the ores. Installation of the Agitated Tank Leach, CCD ........