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 mineralisatio ........

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 ........

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