Mineralization at the Santa Luz Project is consistent with an orogenic gold deposit type.

At the Project, gold mineralization is mainly related to quartz-carbonate-sulphide veining and breccia filling hosted in sheared and hydrothermally altered rocks. Breccia may be comprised dominantly of carbonaceous sedimentary, dacitic, or other volcanic rocks, depending on local geology.

Gold mineralization is associated with two main types of quartz veins. The most common type is foliation-parallel, white to grey coloured, strike north-south, and generally less than one metre wide veins. They may be deformed and boudinaged or may appear undeformed. Where deformed, they are associated with stretch lineations related to transcurrent or thrust movements. The second type of commonly observed quartz veins are most likely related to late northeast-striking structures. These structures are in predominantly brittle or ductilebrittle faults that crosscut all other structures, including foliation, and display a general dextral sense of movement. The veins associated with these structures are normally black or dark grey and are thicker than the north-south striking veins. Fluid assisted hydraulic breccia is commonly associated with these veins.

Mixed veins, characterized by black and milky-coloured quartz, are found in strongly broken zones, mainly at the intersections of the north-south structures with the northeast-southwest structures. These intersections host voluminous and high-grade gold quartz veins and silicified breccia.

The host rocks of the gold mineralization exhibit weak to moderately strong alteration. The most common observed hydrothermal alteration features are albitization, carbonatization, sulphidation, sericitization, and silicification. Host rocks are locally entirely replaced by albite, quartz, sericite and carbonate minerals. Mineralized zones range in thickness from a few metres to tens of metres and have relatively long strike and dip lengths. Geologic models show mineralization at C1 has a north-south strike length of approximately 1,550 m, width of roughly 1,400 m orthogonal to strike, and a depth extension of 840 m. Mineralization ranges in thickness from 15 to 55 m with good continuity along strike and down dip. Dacitic mineralization accounts for approximately 45% of the deposit, with carbonaceous mineralization accounting for 55% of the deposit.

Santa Luz will be a conventional truck and shovel open pit mining operation. The ore and waste rock will be drilled and blasted, loaded onto trucks, and hauled to the crusher area, stockpile areas, or waste rock piles. Ancillary activities will include, but not be limited to, road maintenance, road dust control, site dewatering, dump and stockpile maintenance, grade control, and tailings facility heavy equipment support (as needed).

The original processing plant at Santa Luz was built and placed in operation in mid-2013 and was shut down in September 2014 after 14 months of operation. The original plant consisted of a comminution circuit followed by flotation and CIL of the flotation concentrate with kerosene blanking of the organic carbon. The plant did not operate well, as a result of both process difficulties and mechanical problems. The new processing facility will incorporate the crushing, crushed ore storage, and SAG mill sections of the original plant. The rest of the plant, with the exception of the refinery, will be new.

The plant will consist of the following sequence of processes:
• Two-stage crushing
• Two-stage grinding
• Pre-aeration and kerosene conditioning
• RIL leaching
• Detoxification of leached tailings
• Containment of tailings in a TSF
• Loaded-resin washing and elution
• Electrowinning of gold from the eluate
• Refining to generate gold-copper bars.

Plant throughput will be 2.7 Mtpa ore (7,400 tpd ore) grading approximately 1.4 g/t Au. Projected gold recovery is 84%.

In the final year of operation, dacitic-high- sulphide ore in the A3 deposit will be processed. This ore will be processed by flotation in the existing flotation circuit to recover a gold flotation concentrate that will be shipped offsite for custom processing.