Red October gold mine is situated within an Archaean greenstone belt of the Laverton Tectonic Zone. The stratigraphic sequence consists of footwall tholeiitic basalts, mineralised shale (containing ductile textures defined by pyrite mineralisation) and a hangingwall dominated by ultramafic flows interbedded with high-Mg basalts. Prehnite pumpellyite facies are evident within both the tholeiitic basalts and komatiite flows. Sulphide mineralisation is hypothesised to have been caused from interaction with an auriferous quartz vein, which has caused the intense pyrite-defined ductile textures of the shale in the upper levels. The fluid is believed to have been sourced from the intruding granitoid to the south of the deposit.

Mineralization at Red October occurs over 900m along strike and to a depth of 700m. Mineralization is hosted in vertical quartz breccia zones as well as where they intersect the primary host of graphitic black shales sitting on a Mafic/ultramafic contact. Inside the primary ore zone ore is seen as nuggetty visible gold and moving away from these zones mineralization is patchy with continuity along strike of between 5-20m and sub mineralization outside zones of silica flooding/brecciation.

Mining of the Red October underground mines ceased during FY2017.

No assumptions have been made as to possible mining methods or dilution factors due to the variable nature of the dip and thickness of the ore body. Current mining methods employed at Red October utilize both air legging and long hole production rigs and is determined by ore body dimensions. Dilution is calculated using a low grade wireframe encompassing the ore domains which typically grades at 0.01g/t. "

Ore processing will be via an external processing facility. Terms for ore purchase or toll treatment are underway.

Saracen utilised an 84% average metallurgy recovery for Red October ore to the Carosue Dam processing plant for mine planning assumptions.

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.