The geological setting, alteration and characteristics of the gold mineralization defined at Sandman all provide strong evidence that Sandman is a low-sulfidation epithermal style of deposit that formed close to the surface.

Key features at Sandman that support this interpretation include:
• The presence of quartz adularia veins which are in common association with the higher-grade gold mineralization.
• Zones of advanced argillic alteration (opaline silica-quartz-kaolinite-alunite) mainly above the quartz-adularia zone, which extend along some favourable stratigraphic horizons or contacts away from the large structures.

The dominant target types which exist at Sandman for future exploration are largely one of three main deposit types:
1. Extensive shallow and low-grade gold mineralization, typically forming within 100m of the paleo water-table, which more favourable to the more porous host rocks such as basalt, conglomerate and altered diatreme breccia. This deposit type has most prominently been identified at the North Hill deposit to date.
2. Higher grade Au-Ag mineralisation in quartz-adularia small cm side veinlets hosted within feeder structures underneath the broader shallow stratigraphically controlled and lower-grade gold mineralization. This style is evidenced in the Silica Ridge and Southeast Pediment deposits, where potentially larger more continuous zones may exist at greater depths and laterally along the currently defin ........

The Sandman Project is planned to be mined using conventional open pit mining methods on the four (4) separate deposits

The mining operation will be a dayshift-only schedule with a roster of two production crews on a 4-days on and 4-days off, 12 hours per day.

Pre-production stripping is minimal as mineralisation outcrops at or near surface where mining is anticipated to begin. The pit areas have small shrubs and grasses that can be easily cleared with planned mining equipment.

Open pit mining is currently envisaged to be by diesel-powered equipment, utilizing a combination of one rotary blasthole rig, one 8m3 front-end loader (or similar size excavator), and five, 70-tonne capacity trucks to handle ore and waste. The mining fleet has enough capacity to move up to approximately 5.5Mtpa of total material on a dayshift-only schedule. Support equipment comprising a grader, track dozer(s) and water truck will aid in the mining. Ore will be hauled to the crushing area for stockpiling before being rehandled later for primary crushing. Initially, waste rock will be stored in the waste rock dumps close to the pit to reduce haulage costs. As space and design allows, waste will be backfilled into the pit to reduce haulage costs and surface disturbance.

Haul roads are contemplated to be 9-10m widths for one-way traffic and 18-20m widths for two-way traffic. The final location of the ramps will be optimized to reduce the overall pit slopes and ........

Mineralized material will be delivered from the open pit to a stockpile adjacent to the crushing plant. The mineralized material will be fed to the crushing plant using a front-end loader and will be crushed and then transported to the heap leach pad via haul trucks.

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