The Pic de Fon and Ouéléba iron deposits comprise the Simandou South project.

The Ouéléba and Pic de Fon supergene-enriched itabirite iron ore deposits are located in the southern part of the Simandou Range in south-eastern Guinea. The Simandou Range is part of the Kénéma-Man Domain of the West African Craton. The deposits are hosted within the Simandou Group with the Itabirite Formation overlying the Phyllites and Schist Formations. The deposits have undergone intense multi-phase deformation and are deeply weathered.

The Simandou Range is the result of multi-phase ductile deformation represented by tight synformal fold keels and sheared antiformal structures. The ridge consists of a formation of itabirites (metamorphosed BIF) and phyllites within the Simandou Group overlying basement gneiss and amphibolite. The itabirites and phyllites have been deeply weathered and identifying stratigraphy is difficult, with the only discernible contact being that between the itabirites and phyllites.

The following domains have been interpreted for the itabirites: laterite, carapace, transitional mineralisation, friable haematite goethite mineralisation, friable enriched itabirite, friable poor itabirite and compact poor itabirite.

Phyllite domains have been interpreted for very weak phyllite, soil strength phyllite, weak phyllite, compact pyritic phyllite, weak quartzite and compact quartzite.

Laterite and carapace are sub-horizontal with the laterite overlying all other lithologies and the carapace overlying the mineralisation and enriched itabirite lithologies.

The itabirites and phyllites are interpreted to be folded with the axial planes of the fold hinges dipping moderately to steeply towards the west.

The Ouéléba and Pic de Fon deposits extend for 7.8 km and 7.5 km along strike with widths of 0.8 km and 1 km respectively. The mineralisation interpreted for the Mineral Resources extends from surface to a vertical depth of approximately 500 m.

The high-grade haematite-goethite (Ouéléba) or haematite-martite (Pic de Fon) mineralisation transitions with increasing depth to partially enriched itabirites and then into unenriched itabirites.

A surface covering of weathered mineralisation typically up to 20 m to 30 m in depth is found over the high grade mineralisation at Pic de Fon. At Ouéléba much deeper pervasive weathering is observed with a weathered carapace (goethite, clay and limonite rich) and a transitional weathering/mineralisation zone are observed over the high grade mineralisation. These zones are typically between 30 m to 100 m thick but can be over 300 m thick in some locations.

The proposed mining operation will be open cut mining with a large annual tonnage (after initial production and ramp up). The proposed bench height is 12 m and this has been taken into account for the selection of the resource model block size.

Standard crushing and screening processes will be used to produce directly shippable product.

No metallurgical modifying factors have been applied given the mineralization is of direct shipping grade and it is modelled that 100% of plant feed is recovered as product.

Processing characteristics, such as abrasiveness, are factored into the operating cost model.