The Cracow Gold Operation is host to a series of low sulphidation epithermal gold deposits. Mineralisation is associated with several major north-northwest, north and north-east trending steeply dipping fault structures. These structures are hosted in Early Permian andesitic lavas of the Camboon Volcanics. Along each mineralised fault structure high grade gold shoots develop at sites of increased dilation associated with particular brittle andesitic host rocks.

Dimensions of high grade gold shoots range between 90 metres to 500 metres (strike), 90 metres to 250 metres (down dip) and from 2 metres to in-excess of 10 metres thick.

Gold mineralisation is associated with discrete epithermal veins and/or stockwork veining and are composed of quartz +/- adularia +/- carbonate veins. Sulphide percentages in the veins are generally low (<3%) primarily composed of pyrite, with minor occurrences of hessite, sphalerite and galena. Vein textures include banding (colloform, crustiform, cockade and moss), breccia channels and massive quartz.

Alteration of the country rock can be extensive and zone from the central veined structure. This alteration consists of silicification, phyllic alteration (silica, sericite and other clay minerals) and argillic alteration in the inner zone, grading outwards to potassic (adularia) then an outer propylitic zone. Gold is very fined grained and found predominantly as electrum but less common within clots of pyrite.

The underground mine is accessed through a single decline from surface with ore primarily mined via open stoping through a modified Avoca mining sequence.

Underground mine production is from several of the known deposits in the field all connected by underground drives to the one portal at surface. Ore is produced using narrow vein bench stoping, occasional cut and fill stopes, and up-hole retreat benching. Dry rock fill is used as the most common backfill. Where required, a cemented rock fill will be placed to allow for pillar recovery. The stoping method is described as Avoca or Modified Avoca depending on the access constraints.

Modified Avoca – this is the primary method of extraction at Cracow. Bottom up method working on top of backfilled (rockfill) stopes.

Uphole retreat – used on the top level of an orebody or in a sill pillar. Stopes remain open as there is no backfill horizon.

Benching – used on the bottom level of an orebody to extract ore that would not be economic to mine conventionally (capital costs associated with another level below).

Transverse stoping – used in wider (>15m) areas to ensure maximum recovery.

The Cracow processing plant consists of a three-stage crushing circuit, primary and secondary ball milling.

Primary crushing/grinding plant/machinery:
- Jaw: Jaques 42x30;
- Secondary: 4 ¼ ft cone crushers;
- Tertiary: 4 ¼ ft cone crushers.

Grinding plant equipment:
- ML01: 4m x 5.9m Morgardshammer OFBM, 1400KW;
- ML02: 2.9 x 4.3 Morgardshammer OFBM, 450KW;
- HIG01: Outotec HIG500, 500kW.

Grinding media:
- 40mm and 60mm high chrome grinding balls (ball mills);
- 3mm ceramic beads (HIG mill).

Ore is processed in a conventional gold leach plant with a nominal capacity 570,000 tonne per annum.
The process is:
- Leaching with cyanide;
- Gold absorption in carbon in pulp tanks;
- Carbon strip, electrowinning to recover the precious metals; and
- Production of a gold – silver Doré.

Ore treatment/processing method/s: Free milling and treated by conventional crush-grind-CIP processing to produce gold-silver dorè.

Screening plant/equipment:Jaques Torrens double deck screen, top deck passing 24mm, bottom deck passing 10mm.

Mineral liberation/recovery method:Cyanide leach followed by CIP adsorption.

Mineral/fuel processing/recovery plant/ equipment:Denver 14m diameter pre-leach thickener, 3 Leach Tanks ea 3 3 540m , 6 Adsorption Tanks ea 155m.

Cyclone Feed pumps:Krebs Millmax 8" x 6".

Chemicals/reagents used:Sodium Cyanide, Hydrochloric acid, Sulphuric acid, Sodium Hydroxide - Orica; Hydrogen P ........