The exploration targets occur in Archean basement rocks of the Mozambique belt system which principally comprise metamorphic rocks ranging from schist to gneisses including marbles, amphibolite, graphitic schist, mica and kyanite schist, acid gneisses, hornblende, biotite and garnet gneisses, quartzite, granulite, and pegmatite veins. Initial exploration has focused on areas where there no or minimal overlying younger sedimentary sequences remaining (mostly Cretaceous sandstones and conglomerates).

The ore zones at Bunyu (Namangale) are relatively wide, tabular deposits which are favourable for mining as dilution will be low and this dilution is likely to carry economic graphite material. Dilution and recovery of the ore zone were estimated at 5% and 95% respectively. Therefore the Bunyu (Namangale) deposits are suited to conventional open pit mining methods, of drill & blast, load & haul. Separate fleets will be used for Bunyu (Namangale) North and South due to the distance between the mining areas.

Based on the material movement volumes, each pit could be mined using a small fleet of machinery on a 24/7 operation. A 120-tonne excavator and 100 tonne payload trucks could move around 15 to 17,000 tonnes per day which would be sufficient to meet the requirements ofthe schedule. At Bunyu (Namangale) North, an option would be to run a similar sized excavator and a fleet of 50 tonne articulated trucks. Whilst these have a slightly higher running cost per tonne, they have the flexibility of being used for waste placement to build infrastructure such as the tailings dam if these activities happen concurrently with mining.

The proposed inter-ramp angles (IRA) were 36 degrees for oxidised material and 49 degrees for fresh transitional and fresh rock material. As PSM proposed an IRA only, these angles were reduced slightly to allow for the effect of pit ramps in the optimisation process.

At each location, small stockpiles of ore material would need to be established to allow for any delays in either road haulage to the processing facility or any delays in the open pit mining operations.

Waste dumps have been designed to hold all waste rock material within the pit designs. The waste dumps are designed, as a final landform with an overall slope angle of 20 degree, with height to nominally not exceed 50m and thereby tie in with the natural landforms as much as possible.

The conventional open cut mining operation is planned to beundertaken by a mining contractor. An experienced mining contractor will be utilised to undertake the mining operation and associated activities and the ore will be hauled to a ROM pad at the processing plant and waste will be stored in waste dumps at the mine.

The processing will be by well-proven crushing, grinding and flotation methods. Ore will be fed to the processing plant at a nominal rate of 3.8 Mt/y to produce a nominal LOM average 170 kt/y graphite concentrate averaging 95% TGC at a nominal 93% recovery. The plant design and equipment selection has been based on metallurgical testwork from the diamond drill core samples, testpits and orebody composite samples. The product will be filtered, dried, and bagged onto 1t bulka bags and then trucked approximately 150 km to the port at Mtwara in south east Tanzania for shipping to marke