The project area is prospective for mesozonal “lode gold” deposits which typically have a structural component and display a strong relationship to regional scale shear zones. Similar deposits can be found in other areas of the late Proterozoic Birimian terranes of West Africa. Gold mineralisation is typically associated with networks of quartz mineralisation or associated with disseminated sulphides within strongly deformed alteration zones.

At Balogo there have been at least three distinct mineralisation styles recognised. These include:

1. High-grade gold mineralisation (+/- Cu, Bi, Te) hosted in a sequence of diorites (as defined by drilling at the Netiana deposit over a length of approximately 500 m to a depth of approximately 250m). Mineralisation is restricted to a single dioritic unit which has a structurally-controlled hanging-wall contact with a distinct unit of chloritic metasediments. High gold grades are typically associated with quartz veining within the dioritic rocks. Figure 10 shows diamond drill core with this style of lost lithology.

2. Massive magnetite associated copper-gold mineralisation. This style of mineralisation outcrops near Cobra Hill and occurs as generally massive magnetite (+/- copper) gold mineralisation. Mineralisation is probably shear controlled and generally is hosted in metasediments immediately above the structural contact between metasediments and dioritic intrusives.

3. Copper-gold mineralis ........

The proposed method of mining for Netiana is a conventional open pit method using drilling and blasting, loading with excavators, and hauling with articulated dump trucks (ADT). The ore will be extracted by hydraulic excavators (30 to 40t) to maximise selectivity where the ore body is narrow, and the waste will be loaded by slightly larger hydraulic excavators (60 to 80t) to allow for higher productivity.

There is potential for additional Mineral Resources to be exploited by open pit mining methods, although this is dependent on improved project economics and/or reclassification of the Inferred Mineral Resources through additional drilling. Consideration of underground mining has not been necessary at this stage of the Project, although if the minerals were found to continue at depths beyond economic open pit limits then this could be considered in the future.

The evaluation of Netiana assumes that the ore will be transported to the processing facility at Youga. The optimal production rate is constrained by the capacity limit of the plant at Youga. Consideration also has to be given to the maximum vertical advance rate as the pit limit at surface is relatively small in area (250 m x 300 m) and the pit extends to a depth of 100 m below topographic surface. The mining rate was therefore set at between 300 and 680 Kt/month.

The Youga processing plant uses the conventional gravity/CIL gold recovery process, similar to various facilities in operation in West Africa. This consists of a 3-stage crushing operation, ball milling, gravity concentration and cyanidation by carbon-in leach (CIL). Pressure Zadra elution is utilized for recovery of gold from loaded carbon.

Crushing Circuit:
Run of Mine (ROM) ore is delivered to the primary crusher feed bin by front-end loader (FEL). Ore is withdrawn by a variable speed apron feeder to the primary (jaw) crusher. The crushed ore is conveyed to the secondary (cone) crusher, which operates in open circuit. The secondary crushed product is fed to a single deck screen (14 mm openings to produce a nominal -12.5mm crushed product), with the screen oversize reporting to the tertiary crusher section (two cone crushers in parallel) feed bins, while the screen undersize reports to the fine ore stockpile feed conveyor. The tertiary crushed products report back to ........