The Project can be classified as sedimentary – metamorphic. During late Precambrian age, pelites and carbon were deposited at the same time. Later in early Cambrian age, orogenic movements transformed these sediments to high grade metamorphic rocks, and these movements transformed the carbon and the hosted rock to gneiss with graphite (this type of mineralization with the different metamorphic minerals is known as the Kinzigite Complex).

The mineralization was shifted by a regional fault, which dictated alignment of the host rock (gneisses and paragneisses) and coupled with the soft nature of the graphite, made the association of such strike and fold (anticlines) changes to host mineralized zones and thicker lenses. Several deposits, including the Santa Cruz Graphite Project, are hosted in this regional area that covers over 25,000km². The region is known to produce high-quality natural flake graphite, which occurs as flat, plate-like particles with either hexagonal or angular edges. The graphite is derived from carbon rich sediments and is generally disseminated throughout the mineralized zones, but often with periodic lens-shaped pockets of higher-grade materials.

Flake size has a strong impact on demand and as a result pricing, with larger flake sizes generally being higher in value. Natural flake graphite is generally classified in the industry by flake size as follows:
1.) Jumbo: +50 mesh (0.3 mm)
2.) Large: –50 mesh to +80 mesh (0.18mm)< ........

The mining method selected for the Project is conventional open pit with excavator, dozer and haul trucks. Life of mine strip ratio is favorable at 1.27 tonnes of waste for each tonne of rock mined.

Operations for the Life of Mine (LOM) have been divided into following two phases:
- Phase 1 Pilot Plant Operations (5,000 tpy of concentrate);
- Phase 2 Operations (25,000 tpy of concentrate).

Grade control will be coordinated through a full-time grade control crew of technicians that will use channel samples taken at the pit face to identify the ore zones. When required, the grade control crew will execute drill holes at the mining faces to determine grade control parameters.

Excavators will load conventional on-road 25 ton trucks that will transport the ore to the plant ore stockpile area and the waste to the waste storage facilities (WSF). The WSFs will have adequately prepared areas, and wasterock will be disposed in a controlled manner (compacted along with installation of surface drainage and revegetation, etc.) to guarantee the long-term physical and chemical stability of the deposit and facilities.

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