The Cavanacaw deposit can be characterised as of Palaeozoic orogenic type. Orogenic gold deposits
are typified by quartz-carbonate-sulphide dominant vein systems associated with deformed metamorphic terranes of all ages. Mineralisation displays strong structural controls at a variety of scales. Deposits are most commonly located on second- or third-order structures in the vicinity of largescale compressional or transpressional structures formed at convergent margins (Groves et al. 2003).

The Cavanacaw gold deposit is one of several orogenic structurally controlled, mesothermal gold bearing quartz and quartz-sulphide vein systems located in the Caledonian basement rocks that underlie the area north of the Iapetus suture in the British Isles.

Gold mineralisation is known in the Cavanacaw vein swarm and in two showings in the Cornavarrow Burn some 5 kilometres to the west. Numerous other mainly geochemical targets for undiscovered gold mineralisation exist throughout the licence area which is largely covered by glacial till and, in the higher areas, by hill peat.

The Kearney structure, as revealed by trenching, is a very complex zone of quartz-sulphide mineralisation and associated alteration, along which there has clearly been pre- to post-mineralisation movement, resulting in an irregular lattice-work of mineralised veins.

Quartz veins may swell from stringers to a width of over a metre, over a distance of several metres. The veins are commonly fringed by varying widths of clay gouge. Wallrock alteration in the form of sericitisation and bleaching may extend several metres into quartz-feldspar schist host rocks, epending on the degree of fracturing.

The more limited drilling and trenching on the other structures showed them to be broadly similar in terms of overall mineralogy and grade of mineralisation.

The mineralised veins that have been identified in the sequence strike either north-south or northwestsoutheast and are steeply dipping. Mineralisation within the structures consists of quartz veins up to a metre wide with disseminated to massive auriferous sulphides, predominantly pyrite and galena with accessory arsenopyrite and chalcopyrite. Mineralisation may occur in the quartz veins, in clay gouge zones and in an envelope of sericitised schists, but is invariably indicated by a typical blue-grey or black colouration.

Gold values are closely correlated with sulphide content such that the tenor of mineralisation can be estimated visually in drill core and during open pit mining. Visible gold has not been reported in core and the low nugget effect is consistent with this and with the assumed presence of gold in very fine particle sizes, although no mineralogical studies have been carried out to confirm this.

Silver values are closely correlated with gold, averaging between 1.0 and 2.5 parts of silver to 1 part of gold. Silver values probably occur mainly in association with galena, but also alloyed with gold. No mineralogical studies have been carried out to confirm this or to determine if silver is present in a separate mineral species.

The economic veins of the deposit will be extracted using a combination of Sublevel Longhole Stoping and Shrinkage Stoping mining methods. Paste backfill will be utilized to maximize extraction whilst increasing stability and will reduce the surface footprint required for tailings disposal.

Both methods of ore extraction are to be used depending on the geometry of the ore veins. The stopes once mined, will be back filled using development waste rock or a cemented paste comprising of tailings that have been stockpiled from past mining activity. Both stoping methods willbe modernised to minimise traditional safety risks whilst maximising production.

The processing facility is fed with ore from the underground mine. Ore is deposited by ore conveyors into a storage shed that feeds directly to the processing facility. Ore in the storage shed has been previously crushed by the underground jaw crusher will be approximately 50mm.

Ore size is further reduced by a cone crusher to below 10mm. The crushed ore is screened and any oversize (+10mm) gets returned to the cone crusher whilst the undersize (-10mm to +1mm) is conveyed to the ore bins. Fines below 1mm will be pumped to a thickening tank and will later enter the regrind ball mill.

Ore is conveyed from two ore bins under a magnet to remove any foreign objects. This conveyor is fitted with a belt weightometer which calculates mill throughput which is used in the reconciliation process. Ore is then transferred to a feed bin which allows for constant flow of material into the primary ball mill.

The primary ball mill grinds the material to 75% passing 180u ........