The Project area is prospective for a number of deposit types. The Hot Maden properties are located in the Eastern Pontides metallogenic province, a tectonic belt comprising part of a volcanic island-arc system. The province extends over an area of more than 500km E-W and 50km-75km N-S and consists of a 2,000m to 3,000m thick sequence of volcanic rocks with minor intercalations and lenses of marine sediments which are divided into three stratigraphic cycles. The ratio of economically important base metal deposits changes along the general strike of the province from east (Cu>>Pn+Zn) to west (Pb+Zn>>Cu).

Gold-copper mineralisation is broadly associated within a sub-vertical, north-northeast trending fault zone (the “Hot Maden Fault Zone”), with mineralisation occurring in andesitic breccias and dacitic tuffaceous sediments as quartz-sulphide (pyrite-chalcopyrite) +/- hematite/jasperoid breccias and locally massive sulphides (pyritechalcopyrite). The highest grade Au-Cu mineralisation appears to lie along the eastern margin of the Au-Cu mineralised zone; see. Stratabound-style Zn-Pb (sphalerite-galena) mineralisation flanks the AuCu zone to the east and locally to the west. Hydrothermal alteration adjacent to the Au-Cu zone is dominated by argillic and phyllic assemblages.

The Hot Maden Fault Zone at surface is a broadly north-northeast striking corridor of gossanous and locally argillic/phyllic hydrothermal alteration that strikes through the property for seven plus kilometres with a width of up to 300 meters. Locally it has intense pyrite/chalcopyrite with a significant component of supergene clay alteration.

In the south zone, quartz-sulphide vein type mineralisation and breccias containing sulphides; locally reaching massive to semi-massive proportions and often coarse-grained, including pyrite, sphalerite, chalcopyrite and galena with associated gangue of coarse crystalline to comb quartz, minor calcite, possibly Fe carbonate, chlorite, barite and minor pink rhodochrosite. Early deposition of fine-grained pyrite is evident, perhaps followed by coarse sphalerite; locally with quartz, coarse pyrite and galena. Post-dating some massive sphalerite deposition are at least two generations of comb quartz-pyrite-chalcopyrite veins which both follow and locally crosscut the early stage vein structures. This paragenetic stage may correspond with Cu mineralized veins in the central part of the property. Here quartz-pyrite-chalcopyrite veining locally overprints the margin of the adjacent clay-sericite-pyrite altered felsic flow dome.

The current view of MARL/Lidya in relation to the genetic model for Hot Maden favours a sub-volcanic hydrothermal model with the bulk of the breccia style mineralization formed between the epithermal and porphyry levels, similar to the high-sulphidation epithermal type although lacking significant concentrations of enargite and silver. However, the presence of minor volumes of semi-massive to massive sulphide (pyrite-chalcopyrite) mineralization, especially in the northern portion of the Hot Maden deposit (e.g. HTD-04 78.2m – 113.2m, HTD-34 57m - 64m), could suggest the existence of an earlier massive sulphide system that pre-dated the formation of the epigenetic breccias.

Hod Maden will be an underground mine extracting most of the ore from the steeply-dipping, Main Area of the deposit. Smaller ore quantities will be concurrently mined from the South Area, throughout the mine life.

The underground mine comprises two mining areas, the Main Area and the South Area; with the Main Area comprising approximately 88% and 94% of the Mineral Reserve tonnes, contained gold and copper respectively. The South Area comprises two smaller stoping blocks, positioned to the south of the Main Area.

The stoping extents within the mine design covers a strike distance of 480 m and a vertical distance of 425 m. All mining levels will be established at 25 m sub-levels. Mine access will be via twin surface declines with portals located in the North and South Valley. The declines meet at the 906 mRL and the lower levels will be accessed through a single decline. The South Area is accessed via footwall drive extensions off the Main Area and an internal incline to the levels above 810 mRL.

Mining of the Main and South Areas will be by LHOS. The selection of LHOS as the primary mining method was based on the following:
• Caving mining methods were excluded for social, environmental and safety reasons as subsidence through to surface was deemed unacceptable;
• Only non-entry mining methods with the ability to use a high-level of mechanisation were considered for safety and productivity reasons;
• LHOS is a relatively productive and flexible mining method that is well suited to the steep dip and moderate width of the deposits.

Most of the Main Area will be mined using Transverse LHOS in a primary / secondary mining sequence where the orebody is greater than 10 m in width. Longitudinal LHOS will be used in the South Area, and in the Main Area where the orebody can be mined to its entire width of 10 m or less.

Paste backfill will be used to fill open stope voids to increase ore recovery, with rockfill being used to fill open stope voids as the opportunities arise without compromising the mining sequence or future mining stope integrity.

Drilling and extraction drives will be established at the top (drilling) and base (extraction) of each level accessed from a footwall drive located approximately 20 m horizontally from the orebody. The adopted vertical spacing of levels will be 25 m with each level accessed from a cross-cut connecting the level development to the decline.

Mining within the Main Area will be below the 835 level, with mining blocks comprising groups of 4 levels (typically) below 810 level, to be established every 100 m vertically. Within the 100 m block height, sub-levels will be driven at 25 m vertical spacing. Access to the sub-levels will be gained by ramp and cross-cuts. Ore development to access the Mineral Resource will be for a distance of up to 125 m north and south (each side) of the access point. Slots will then be developed between sub-levels followed by retreat LHOS towards the access in approximately 20 m panels. The lowest elevation sub-level within each mining block, will lead the mining front. Broken ore will be drawn down in a controlled fashion to provide interim wall support and assist in minimising wall dilution. Fill barricades will be constructed on the lower levels other than the uppermost, after the extraction of each panel. The mining cycle will thus involve ore development, followed by drilling, blasting, mucking, and backfilling.

Access to the Hod Maden underground operations is via two separate portals, located within each of the north and south valleys. Due to limited surface area, key surface infrastructure has been located within the two valleys, connected via a common decline network, which access the lower workings of the underground mine.

A 1.4 km decline driven from the north portal will connect to the south portal decline/incline network at the 906 mRL to complete a means of access between the north and south valleys. The decline network will be developed to the lower levels of the mine, extending the primary infrastructure as required. Ore production will commence upon completion of the primary ventilation circuit and required infrastructure (paste fill, services, dewatering, communications etc.).

The majority of capital development is concentrated within the Main Area with extensions of development required to access the South Area.

Capital and operating development includes construction of the decline, main haulage levels and cross-cuts to provide access to production locations. Underground ventilation required the development and extension of ventilation raises connecting to the underground levels to the surface and connecting levels in between. The intake raises are to be used as secondary means of egress.

All development within the Main Area will be developed within the footwall, whereas due to resource geometry and access constraints, all development within the South Area will be in the hangingwall.

Ore production will commence within the Main Area with ore sourced from the South Area as required to achieve the ore production targets. Mine life is projected to be 13 years, with an 11-year processing duration to treat the total Mineral Reserve of 9.1 million tonnes.

LHOS will use electric-hydraulic twin boom jumbo drills and diesel-powered load haul dump (LHD) machines for waste and ore development. Production drilling will be by electric-hydraulic top hammer longhole drills. Ground support will generally be accomplished by mechanised bolters and shotcrete machines. Ore and waste movement to surface will be via diesel truck haulage. Ore will be hauled to the processing plant via the north decline, with waste material hauled primarily to the surface waste dump location(s) located in the South valley.

The process design has been based on metallurgical test work, experience and knowledge gained
from operations treating similar ore types, designs included in the previous studies for the Project
and the overall project parameters determined from geological, mining, environmental and
economic considerations. The process plant will treat 900,000 tpa. The treatment plant design
is based on proven gold and copper recovery technology and incorporates the following unit
operations:
• Single stage crushing incorporating a single toggle jaw crusher in open circuit with the target crushed product P80 of 76 mm;
• A crushed product storage bin with facilities to manually create and reclaim stocks by front end loader (FEL) to feed the mill during periods when the crushing circuit is offline or to adjust SAG mill feed charge grading;
• A primary SAG mill in closed circuit operation with cyclone classifiers to produce a cyclone overflow product with P80 of 106 µm;
• Bulk flotation roughing;
• A secondary ball mill in closed circuit operation with cyclone classifiers to produce a cyclone overflow product with P80 of 38 µm;
• Bulk flotation scavenging and a single stage of cleaning;
• Regrinding of bulk flotation concentrate in a conventional ball mill in closed circuit operation with cyclone classifiers to produce a cyclone overflow product with P80 of 30 µm;
• Copper rougher/scavenger flotation (scavenger concentrate back to regrind);
• Three stages of copper cleaning;
• Concentrate thickening, dewatering (filtration) and bagging;
• Bulk flotation tailing (low sulphide tailing) thickened and pumped to Maden Valley dewatering and paste plant; sulphidic tailing (bulk scavenger cleaner tailing, copper scavenger cleaner tailing) thickened and pumped to the tailings storage facility in Salicor valley;
• Dewatering of low sulphide tailing (filtration), which in turn will be either mixed into cemented paste and returned underground (either directly from the filtration plant or recycled via an intermediate stockpile) or co-disposed with mine waste;
• Reagents mixing, storage and distribution facilities;
• Services and ancillary processes.

Bagged concentrate will be transported to Hopa Port on flat bed trucks.