Subsequent exploration and evaluation of the KSK CoW has centred on four primary areas (Baroi, Beruang Tengah, Beruang Kanan and Mansur), where activities have focused on identifying porphyry and related epithermal styles mineralisation.

At the Beruang Kanan Main Zone deposit copper is the only element of economic interest, occurring as chalcocite, covellite, bornite and chalcopyrite replacement of pyrite in veins and less common fracture fill settings. The BKM deposit is structurally controlled and has been delineated as:

• twenty five laminated stacked and adjacent domains dipping on average easterly at 30 degrees (10 to 45 degrees dips) over a northerly strike length of 1,300m, across a total width of 900m and a vertical extent of 450m;
• centred on three areas whose lateral and vertical extents are well defined; and
• having extensive and intense alteration throughout the mineralised zone.


Copper mineralisation at BKM remains open in several areas and exploration in the wider district remains in its infancy with:

• structural interpretation indicates potential for repeat settings to exist at depth and in laterally detached nearby locations, although not yet supported by deeper drill holes.
• geological observations during field mapping and geochemical data from drill core, surface rock chip samples at Beruang Kanan South and Beruang Kanan West prospects indicate near surface and similar style copper mineralisation, highlighting the potential for the development of additional copper mineralisation adjacent to the project, with recent drilling confirming similar style mineralisation.
• obvious drill targets with potential for the discovery of additional copper and polymetallic resources also exist nearby BKM and within the wider KSK CoW.

Pits were designed as a close match to the Enterprise Optimisation stage and final pit shells. The pit development stages include:

• initial roads to provide access to the waste rock dump in a valley running west of the pit and the ROM stockpile and crusher east of the pit;
• shallow starter pits in the south and north of the deposit which cut into the eastern face accessing high grade, predominantly chalcocite ore;
• an intermediate stage pit in the north which assists with continuity of ore supply; and
• pushbacks to the final pit in the south and north of the deposit.

The Enterprise Optimisation work and subsequent pit designs and schedules included Measured and Indicated Resources as well as Inferred Resources. The Measured and Indicated Resources account for 93% of copper cathode produced. The Inferred Resource material is mined almost exclusively towards the end of the mine life and accounts for 7% of copper cathode produced. Inferred Resources have not been included in the Ore Reserves.

The mining operations consist of:
• open cut mining operation utilising 300t hydraulic excavators, 100t trucks and ancillary equipment;
• mining activities conducted by a mining contractor; and
• mine planning, grade control sampling, modelling and production scheduling conducted by the
Company.

Other key aspects of the mining operation include:
• average mine operating costs over the mine life are $1.98 per tonne of ore and waste. This cost aligns with actual costs from a comparable scale operating open cut gold mine in Central Kalimantan;
• drill and blast – blast hole patterns and areas of free dig are based on material types in the resource model;
• grade control – sampling assumed to be from blast holes;
• slope stability – the design wall slopes assume dewatering by drilling horizontal drain holes into the pit walls;
• a requirement that all benches and berms be drained to prevent rain water seeping back into the walls;
• pit roads and benches – high rain fall and potential rock degradability in some areas of the pit will make it necessary maintain a source of surfacing material for pit benches and ramps;
• pit water management – slope stability and acid drainage issues make it necessary to capture rain fall and wall seepage in the pit area as quickly as possible for neutralisation in facilities adjacent to the pits; and
• acid waste rock management – most of the leach feed and waste is expected to be pyritic and potentially acid forming. Allowance is made for compaction of all waste in the waste rock dump to minimise seepage through the dump.

Processing and plant facilities details include a three-stage ore crushing circuit (with primary and secondary sizers and two parallel tertiary impact crushers.

The BKM process infrastructure is based on a tertiary crushed ore stacked in a Valley Fill Heap Leach, with conventional SX-EW technology. There is an additional requirement for a neutralisation facility to deal with the excess of acidic water generated due to the site wide positive water balance.

Processing and plant facilities details include:
• a three-stage ore crushing circuit (with primary and secondary sizers and two parallel tertiary impact crushers);
• an ore agglomeration to facilitate fines stabilisation and pre-conditioning of the ore with sulphuric acid and raffinate;
• leach pad stacking consists of portable ramp (“grasshopper”) conveyors and a radial stacker with a stinger. This will allow agglomerated ore to be stacked in lifts up to 10m high;
• a valley fill heap leach that is designed to allow for 7 lifts each of 10m to accommodate the Life of Mine stacked ore of 57Mt. It is completed with an engineered initial platform with a composite ........