Simplified coding of logged intervals in the digital dataset describes the geology, mineralization and alteration at BKM. There is no logging of the oxidation state in the resource dataset. H&A and Mr. Stephen Hughes of KSK reviewed core photos of the mineralized intervals at BKM to verify the logging, to generate an oxidation log and to identify and classify settings for the BKM mineralization. The grouping or classification of the mineralization settings was undertaken with the specific purpose of guiding resource domaining and grade interpolation as the KSK supplied logging is not suited or readily formatted for this purpose.

12 styles of mineralization were identified. These can be further grouped into three main classifications; Sheared Veins, Veins in Shears and Veins in Breccia. The Veins in Shears type is the most dominant style, whereas the Cu grade is highest in Sheared Veins.

Copper mineralization is associated with veining (various Cu mineral species are hosted in veins and fractures, mostly with, but can be without silica and pyrite). A direct relationship between vein intensity/thickness (%veining) and copper grade was noted in the core photos. This relationship also becomes apparent when copper grade is assessed against the logged percentage of veining in the sample interval.

Descriptions of the Beruang Kanan Main Zone style(s) of mineralization and settings are brief and mainly directed at how they relate to both porphyry and breccia-pipe systems.

The BKM prospect covers the 1000m north-south strike extent and 950m width of a vein style deposit of predominately leachable mineralogy (i.e. covellite and chalcocite). As such it is amenable to a low strip ratio open pit mining approach utilizing a conventional truck and shovel based mining methodology.

The overall processing scheme consists of the following assumptions:

- Crushing – Primary crushing to reduce the ROM LFI to a P80 of between 19 mm to 8 mm in a three-stage closed circuit crushing plant.

- Agglomeration – binding crushed LFI fines with larger fragments to form more uniform particles, which will assist stabilization of fines in the heap and also allow the intimate mixing of sulphuric acid and raffinate with the LFI.

- Stacking – placing of agglomerated crushed LFI on the heap leach pad incorporating transportation to a radial stacker (with stinger). This will allow agglomerated LFI to be stacked in heaps of nominal 6 m, but from 2 m to 8 m high.

- Heap Leaching – whereby copper is leached from a heap, or pad, of crushed LFI by leaching solutions percolating down through the heap and then collected from a sloping, impermeable liner below. The pad construction will be carried out in a single stage operation. Raffinate from the Solvent Extraction Plant (SX) will be used to irrigate LFI. Pregnant Leach Solution (PLS) containing copper as well as iron and other impurities will be delivered to the SX Plant.

- Solvent Extraction (SX) – whereby the PLS and electrolyte from the Electrowinning (EW) Plant are contacted with an organic extractant (LIX984NC or equivalent) that selectively transfers copper from the PLS to electrolyte; and increases its concentration in the process. Raffinate (PLS with low copper concentration) will be returned to the leach circuit.

- Electrowinning (EW) – whereby a direct electrical current is applied to the circulating electrolyte in cells containing multiple lead anodes and stainless steel cathode mother plates. Oxygen is formed at the anode and copper metal is plated on the stainless steel mother-plates. This copper deposit will be stripped from the cathode mother plates and bundled and strapped for sale.

- Reagent Storage, Preparation and Distribution – management of reagents such as sulphuric acid, diluent, extractant, salt, cobalt sulphate and guar etc.

- Plant Services – including a compressed air system, water reticulation, fire services and a hot water heating system.