The Nyngan scandium resource is located within a limonitic and saprolitic tertiary age laterite profile, covered by 12 to approximately 25m of Cainozoic alluvium. A fairly typical laterite profile is developed at the prospect:
-Hematitic clay.
-Limonitic clay.
-Saprolitic clay.
-Weathered bedrock.
-Fresh bedrock.

A geological interpretation plan has been previously prepared, based on bedrock intersections in both recent and previous drilling. Because of the weathered nature of the drill cuttings, the geological plan must be considered interpretive. The igneous rock types which have been encountered are:
Pyroxenite.
-Olivine Pyroxenite.
-Hornblende Pyroxenite.
-Hornblendite.
-Magnetite Pyroxenite.
-Dunite.
-Monzonite.

There is a suggestion of a layered trend of the complex in a NW-SE direction (this is supported by the magnetic pattern). These trends reflect a broadly concentric zonation of lithologies (mafic lithologies in the centre becoming intermediate in moving out from the “core”) in the complex. There also appears to be a zone of stronger alteration in the (south) centre of the zone where abundant magnetite and mica (phlogopite) occur.

Mining activity is planned on a relatively small scale, based on the size of the overall operation. The resource is surface mineable, employing open cut mining techniques in two separate pits. A contractor will be employed for the mining earthworks and will be responsible for the provision of excavation including grade management, pit and ramp formation and haul road and dump management. The contractor will employ a hydraulic excavator to remove overburden and expose the top of the mineralisation. All in-pit material has been identified as free dig material, and no drilling and blasting is planned or required. Dozer assist will be used to excavate the limonite in flitches of 2.5 m, with thinner lenses being mined as grade control dictates. Approximately 75,000 tonnes of ROM feed will be won from the two pits each year, utilising a campaign mining schedule, approximately three to four times annually. From these campaigns, mill feed ore will be mined, stockpiled and covered on a ROM pad adjacent to the process plant, on an as required basis.

Waste material will be hauled to the site infrastructure work as required, including surface ponds, roads, and the Residue Storage Facility (tailings pond). Mineralised waste will be deposited on a dedicated mineralised waste dump.

Two separate pits were designated as the western and eastern pits. The western pit is the larger of the two, and is sequenced such that mining commences in this pit first, as it is physical ........

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