The mineral deposits on the property include Salman Trend and Adamus deposits and also several smaller deposits (Bokrobo, Akropon, Nfutu, Aliva and Avrebo). Salman Trend gold deposits are believed to be associated with the same beltmargin shear zones that host the other Ashanti Belt gold deposits and has many characteristics typical of these deposits.

Major gold deposits in Ghana are hosted by proterozoic rocks of the West African Craton, including the Birimian Supergroup, a series of metavolcanic and metasedimentary rocks, the Tarkwaian Group, comprising fluvial metasedimentary rocks, and various gabbroic to granitic intrusives. Gold mineralization within the Birimian Supergroup is structurally controlled and associated with mesothermal quartz veins and sulphide concentrations, while both mesothermal shear hosted and palaeoplacer gold deposits occur in the Tarkwaian Group. The Nzema Project is within the Birimian Supergroup rocks with minor granitic intrusions, bounded by large granitoid bodies to the west and east, and is devoid of Tarkwaian Group rocks.

The Salman Trend is defined by a semi continuous +200ppb gold in soil anomaly extending for at least 9 kilometres along the Salman Shear Zone. Approximately 8.5 kilometres of strike extent has been drill tested to date with several discrete, multi-lode gold deposits identified along the shear zone. Significant oxide gold deposits within the Salman Trend include, from south to north, Salman South, Salman Central, Nugget Hill, Teberu, Salman North, North Hill, Akanko South, Akanko Central, and Akanko North. Salman Central, Nugget Hill and Salman North deposits are located on the shear zone at conspicuous north to north-northwest bends (left-hand flexures) within the overall north-northeast strike of the shear zone.

The Salman Shear Zone is made up of a western hangingwall comprised of 10-125 metres thick deformed phyllite and thin bedded greywacke with S-C bands and graphitic mylonite zones, and an eastern footwall of thick bedded greywacke with minor sheared phyllite zones up to a few metres thick. Boudinaged S0-parallel quartz veins and greywacke beds are a characteristic feature of the hangingwall zone.

At Salman South, Central and Nugget Hill gold mineralization occurs in west dipping lodes approximately parallel to and splaying out along the main Salman Shear. Most of the gold lodes are within the immediate footwall within quartz-veined silica-sericite-carbonate altered greywacke and/or granite with disseminated arsenopyrite. Some narrow, shear zone parallel zones of gold mineralization are present in the hangingwall graphitic phyllite. The mineralized zone at Salman Central gradually transgresses the shear zone from mostly footwall-hosted at the southern end to mainly hangingwall-hosted at the northern end.

Gold mineralization is associated with a complex array of deformed quartz veins and arsenopyrite disseminations in silica-sericite- carbonate altered metasediments and granitoid.

Most quartz veins are small (<2m thick and <10m long), and locally constitute up to 20 per cent of the rocks. At least five types of quartz vein sets are identified, all to some degree mineralized. Gold mineralization does not appear restricted to a particular vein set or sets, and there are zones where some vein types appear barren; the same vein types being mineralized elsewhere.

The Adamus gold deposit, approximately 9km west of the Salman Trend, is hosted by a northwest striking, northeast dipping package of greywacke (footwall) and interbedded greywacke-phyllite (hangingwall). In the western (footwall) part of the deposit, gold mineralization is also hosted by a steeply northeast dipping granite dyke that gradually converges on the hangingwall to the northwest. Three cleavages are present: north-northeast striking S2, east striking S3, and locally a subhorizontal S4. Gentle to open, metre-scale F2 folds are widespread, and small-scale open dome and basin F2-F3 interference patterns were locally observed in outcrop. The few facing directions observed suggest the meta sedimentary package is overturned.

Gold mineralization is intimately associated with pyrite disseminated within and around a complex array of deformed pale grey to dark smokey grey quartz-carbonate-sericite±albite veins. A broad silica-sericite alteration zone about 200 metres thick and 450 metres long is developed in the footwall greywacke sequence and in some areas obliterates primary sedimentary structure. The silica-sericite alteration zone is more extensive than the gold-pyrite mineralization. Unlike the Salman Shear Zone, there is no significant component of refractory gold in the sulphide zone at Adamus. The surface projection of identified mineralization trends northwest for approximately 900 metres and is up to 400 metres wide. Within this zone seven distinct domains of varying orientation and style were used for the resource estimation.

Most of the gold mineralization is located in the south-eastern part of the deposit where a very broad, modestly north-west plunging (35°) zone transgresses the hangingwall greywacke phyllite sequence into the intensely silica sericite altered footwall greywacke unit. This broad zone passes upwards into an extensive horizontal mineralization zone around 50 metres beneath surface in the weathered zones. Mineralization becomes sporadic along trend to the northwest until the northern end of the granite intrusive is encountered. Limited drilling along the granite intrusive also indicates the presence of northeast dipping lodes parallel to the granite margins.

The Bokrobo deposit is situated on the Nkroful mining license, 3.2 kilometres south-southeast of Adamus and comprises generally north-south trending, steeply west dipping auriferous quartz veins hosted by strongly silica and iron carbonate altered, medium to coarse grained, carbonaceous greywacke. A north-south trending dolerite dyke, dipping sub-vertically to the west cuts the depth extension of the main vein. In the southern portion of the deposit, a west northwest to eastsoutheast trending, steeply south-southeast plunging ‘dyke-like’ granitic intrusion is cut by numerous auriferous quartz veins forming a sheeted vein system. In the north of the deposit, mineralization generally occurs in a single lode, but in the south, the mineralization occurs as two main lodes and a series of narrow stacked lodes around or in the outer margins of the granite intrusion. Current interpretation has the main mineralization event occurring post-granite intrusion and prior to intrusion of the dolerite. Some remobilization occurred in favourable structural sites probably syn-dolerite intrusion.

The mining method is conventional open pit mining including drilling, blasting, loading and hauling operations carried out by a contractor. Mining is currently taking place in the Salman Trend on oxide and upper transition material and also at the Adamus pit.

Cumulative mining capacity of the fleet provided by AMS meets the earthmoving requirements of the mining schedule as generated by Nzema technical management and properly supports mining operations. The in-pit material excavation is largely conducted by two Liebherr 984C back-hoe excavators equipped with 7m3 buckets (main production units). Waste and near-pit ore haulage is mainly conducted by CAT 777 off-highway trucks; and material hauled out of smaller satellite pits utilizes articulated Volvo A35F trucks.

Drilling and blasting is performed on 6 to 15m benches, depending on geological and geotechnical settings of a given deposit, with blasted material excavated in discrete 3m high flitches.

The Nzema processing plant is designed to treat oxide, transition and primary ores from the various pits. The design throughput treatment rate depends on the hardness of the ore with 2.1 Mtpa of softer oxide ore and 1.6 Mtpa of the harder transition and fresh ore. The plant has been operating since February 2011 and achieved commercial production in April 2011. The average throughput rate is currently 2.1 Mtpa given the mix of ore feed.

The treatment plant flow sheet is based on single stage crushing, single stage 3.5MW SAG milling, gravity recovery of free gold from a portion of the cyclone underflow using Falcon 5200 followed by an Inline Leach Reactor (ILR) to treat the gravity concentrate and a six stage carbon-in-leach (CIL) circuit to treat cyclone overflow as leach feed. The treatment circuit also includes a Counter Current Decantation circuit (CCD) for the recovery of cyanide from the tails slurry via thickening and decants return dilution to achieve less than 50 ppm of free cyanide to tails. The stripping plant includes a six tonne Zadra elution circuit with electro winning, removal of the gold deposition from the stainless cathodes with high pressure water sprayers and smelting to produce doré bullion.

The primary crushing circuit compromises a Run of-Mine (ROM) Bin with an 800mm static grizzly, a fine chute, a primary feeder and a single toggle jaw crusher. Ore is transported to the surge bin by means of a 400t/hr capacity discharge conveyor.

The Rom Bin has a capacity of 80 t/hr .The design capacity for the apron feeder is 346 wet ton but 400 wet tonnes per hour is being achieved currently.

The in-plant stockpile conveyer is designed to deliver 150 t/hr. The emergency stockpile is a 5 day capacity stockpile and holds approximately 30,000 tons of crushed ore.

The milling and classification circuit consists of a 3.5 MW SAG mill in closed circuit with a cluster of 10 cyclones .The SAG mill has a diameter of 5.5m and an Effective Grind Length (EGL) of 7.32m .The mill is fed by a 320m long conveyor belt at a rate of 290 dry tons per hour. The ore is milled to achieve a P80 of 106µm in size which is feed for the leaching circuit.

The product from the mill is classified using hydro cyclones .The SAG mill operates in closed circuit with classification cyclones to produce the leach feed.

The gravity circuit is comprised of a centrifugal concentrator (Falcon 5200), a Gekko In-Line Leach reactor and a dedicated electro wining circuit. The gravity circuit is fed by underflow from two (2) cyclones representing approximately 10-20% of the feed to the cyclones. The gold, after being leached into solution in the leached reactor, is recovered in an electrowinning cell.

The gravity recovery from the Salman ore is currently between 10-15%. Adamus is expected to be 25 to 30% gravity recoverable gold.

The CIL circuit consists of six (6) 2,000 cubic meter capacity leach/adsorption tanks. The circuit is fed from the Cyclone overflow generated by maximum of eight (out of ten) hydrocyclones. The flow of slurry into the circuit is by gravity with counter current carbon advancement using air lifts. The tanks are sparged with air via the agitating shafts to enhance the leach kinetics.

Prior to leaching, the pulp is passed over the feed trash screen to ensure removal of tramp material such as wood-chips, plastics and grit larger than about 0.63 mm. This is done to minimize screen blocking in the adsorption section. After pre-screening of the feed, the pulp flow through a cascade of well mixed adsorption tanks.

The average operational live volume of each tank is 1,890m3. The tanks are mechanically agitated and each contains a batch of carbon at a concentration of 10 to 15 grams of carbon per litre of pulp. The carbon is retained in each tank by means of screens having an aperture of 0.8mm which allows pulp to flow through and out of the tanks whilst retaining the carbon.

The gold aurocyanide complex in the aqueous phase is readily adsorbed onto the activated carbon. By the time the pulp leaves the last tank in the adsorption cascade the concentration of gold in the aqueous phase is between an average of 0.001 and 0.008 ppm. The year to date CIL efficiency is between 85–87% depending on the tenor of the feed grade.

Six (6.5 tons) tonnes of Carbon is recovered daily from the CIL head tank onto the loaded carbon recovery screen and gravitates to the acid wash column where acid wash treatment is performed. During acid washing, the dilute hydrochloric acid solution pumped into the bottom of the column removes contaminants, predominantly carbonates, from the carbon. Dilute acid and rinse water is disposed of to the tailings hopper.

The carbon is then transferred to the elution column for gold elution. The carbon elution circuit utilizes the Zadra elution process. Sodium hydroxide and sodium cyanide is pumped from their respective storage and mixing tanks into the strip solution tank and mixed with cleaned filtered water. The circuit has achieved an average of 7 strips a day with an average carbon loading of 1500ppm and barren carbon below 90ppm, thus achieving average of 95% strip efficiency.

The gold in solution is recovered by electrowinning and the gold transfers to cathodes. The cathodes are then stripped of the material that has plated onto them. The gold bearing material is put through a filter press, calcined and then smelted in a diesel-fired furnace to produce doré bars for shipment.

The electrowinning cells have fume extraction equipment which remove noxious and explosive gases.

After completion of the elution process, the barren carbon is transferred from the elution column to a dewatering screen prior to entering the feed hopper of the horizontal carbon regeneration kiln. Kiln offgases are used to dry the carbon prior to entering the kiln. The average year to date carbon activity stands at 88% of the virgin carbon.

The tailings from the CIL tank #6 gravitates to the tailings counter current decantation (CCD) thickeners via a vibrating carbon safety screen designed to recover any carbon leaking from a holed screen in the last tank. The slurry is treated through a counter current, 2-stage thickening circuit to recover water and cyanide to ensure WAD cyanide compliance and low water volumes on the TSF. The washed cyanide from the tailings slurry is recovered into the process water pond for re-use as mill feed water addition, water addition to the cyclone feed hopper and for other purposes in the process plant.

Total cyanide recovered from tailings slurry achieved was 86%. This implies that average total cyanide going to tails over the 12 months period was 14% of that used.