The Karari deposit sits along the regional NNW trending Keith-Kilkenny fault zone within the eastern edge of the Norseman-Wiluna greenstone belt. The deposit itself is lithologically and structurally controlled and sits within an altered volcaniclastic sandstone unit that has been offset along a series of major faults running NE-SW and NW-SE, as well as intruded by large lamprophyre units post mineralization. Mineralization is dominated by pyrite and hosted in broad hematite altered sandstone units with a central high grade siliceous core light-moderately dipping to the North.

Mineralisation at Karari has continuity over 900m along strike, 400m down dip and 250m across strike. High grade mineralisation is controlled by 60° East dipping shear zones. Mineralisation is hosted within extensive quartz vein breccia zones adjacent to the shears. The high grade mineralisation is associated with intense haematite, silica and sericite alteration that occurs predominantly where flatter cross-linking structures intersect with the steeper dipping shears.

Development work commenced at the Karari Underground Mine in November 2014, with the establishment of portals for the exploration and main declines, with the aim of establishing a suitable drill platform from which to test and delineate the underground resource.

Since that time, the mine has been developed to a depth of 230m below the open pit and has invested in dual declines to efficiently extract multiple ore loads using long-hole open stoping methods. Commercial level of production for Karari was declared in October 2015

Underground mechanised mining for development, ground support, and open stoping is utilised at Karari. Mining and geotechnical studies have determined open stoping with remnant pillars is appropriate for the deposit, and this method has been implemented successfully.

The current mine design allows for 30% to 35% of the resource to remain in-situ, as either rib or sill pillars. The overall extraction ratio of the mineral resources is approximately 65%.

Standard underground infrastructure is currently operational; this includes a decline for access and truck haulage, ventilation fans, escape-way ladders, electrical reticulation, mine services (air and water), and mine dewatering infrastructure. No specialised infrastructure is required to accommodate this method of mining.

It is assumed that any further open pit operations at Karari will utilise 120t and 160t hydraulic excavators mining 10m benches on 2.5m flitches.

Ore from Karari continues to be treated at the established Carosue Dam processing facility. The Carosue Dam Process Plant is a CIL cyanide leach plant incorporating a gravity circuit which is appropriate for the extraction of gold from free milling gold ores. An average plant processing recovery of 92% has been assumed in the Ore Reserve Estimate which is consistent with current and historical plant recoveries for Karari ore.

The prediction of the metallurgical performance of the Karari deposit is based on the geological foundation consisting of a free milling ore body contained within metamorphosed volcaniclastic sediments. Metallurgical testwork carried out by independent consultancies has indicated that there is moderate to high gravity recovery, with total cyanide soluble recoveries reporting 93-97%. Historical performance at the Carosue Dam processing plant has evaluated the gold contained within the ore body to be approximately 92% recoverable.