Gold mineralization associated with shearing in these zones is primarily BIF-hosted and has been mined to a relatively limited extent in the past from steeply plunging ore shoots. Secondary mineralization also occurs in greenschist adjacent to the BIFs. Shearing is primarily concentrated along two parallel faults of regional extent, known colloquially as the Barbrook and Zwartkoppie Lines.

The ore bodies along the Barbrook Line are aligned along a succession of BIF/chert and meta volcanic lithologies. On the Zwartkoppie Line, a series of tight folds with sub-vertical fold axes form the foci of mineralization within intercalated schist, chert and BIF host rocks.

Barbrook has a well-established surface infrastructure (plant, workshops, laboratory, tailings dam, etc.), extensive underground development (>50 km) and readily accessible areas for mining. No ore extraction and very little exploration have been undertaken to date below 10 Level. Access to the main underground sections is via two equipped adits, respectively on 7 and 10 Levels, which are separated by 150 vertical meters.

Currently mining at Barbrook using an open stope, sub-level benching method at around 6000 tons of ore per month at a grade of around 6-8g/t Au. Barbrook dispensed with the roaster but utilises other parts of the original plant.

The Taylors (Barbrook) parallel circuit of the (“CMC”) was commissioned and initial production has commenced.

Production (stoping) operations at the Lily Mine commenced during the quarter and tonnage build-up continues to increase according to plan. Small scale initial production for Barbrook Stage 1 also commenced with ore from the Taylors Project, where ore is currently being sourced from a surface stockpile and treated through the CMC flotation circuit. Regional exploration programs are on-going, targeting additional mineral resources.

The Taylors Project (Barbrook Stage 1) processing circuit in the CMC was completed and commissioned during the quarter. This included work on the milling and flotation sections to enable production operations to commence, although further work is still required on the crushing and concentrate drying sections. Small tonnages of surface stockpiled material were processed in March to provide the first batch of concentrates, which was dispatched at the end of the month. This production was insufficient to be reported in this quarterly summary, hence detailed figures will be provided in next quarter’s report, when mining operations at the Taylors Project have officially been commissioned.

The underground workings at the Taylors Project are now being re-opened and production operations will commence in the next quarter. The balance of the surface stockpile will be processed first, after which better quality underground ore will be milled and treated to meet the requirements of the concentrate off-take agreement schedule.