Halilaga is classified as a copper-gold porphyry system. Advanced argillic alteration and gold mineralization at Kunk Hill and Pirentepe are classified as high sulphidation epithermal mineralization. Copper mineralization in the Bakirlik Tepe area is classified as proximal copper skarn. All three types are related to magmatic-hydrothermal activity associated with intrusion of the Kestane porphyry stock and other intrusions in the area.

The geology of Halilaga is characterized by various lithological associations made up of: (1) Paleozoic and early Mesozoic basement metamorphic rocks; (2) Permian and Mesozoic sedimentary and ophiolitic rocks; (3) Tertiary volcanic and intrusive rocks; and (4) Neogene sedimentary rocks. Older rocks are affected by several collisional orogenic events. Tertiary rocks record mainly brittle extensional and transtensional deformation.

The property is located in a district with significant potential for both porphyry copper-gold and high-sulphidation-style gold deposits. Investigation of geological relationships in the field along with geochemical and geochronological data suggest that magmatic activity began with the intrusion of granitoids, coeval with an early phase of volcanic activity, and was superseded by a second phase of volcanism. The mineralized intrusives are thought to be part of a suite of 26 to 38 million year old (Ma) quartz monzonites and granodiorites.

The Halilaga district is mainly underlain by Oligo-Miocene volcanic and-sedimentary rocks overlying a basement of schist and carbonate rocks which outcrop to the southeast of the Bakirlik area. Granodioritic stocks intrude the basement rocks, giving rise to metasomatism and skarnification. The Kestane porphyry stock, the main host rock to the Halilaga porphyry system, has a pronounced hornfelsed halo.

The Halilaga Project is centered on a large mineralized system containing porphyry copper-gold, skarn and high-sulphidation gold mineralization with related alteration assemblages extending over an area of more than 4 km by 2 km. The Kestane porphyry stock is characterized by potassic alteration (K-feldspar-biotite-magnetite) overprinted by phyllic (quartz-sericite-pyrite) alteration. Most quartz veins are B-type that average 5% of the rock by volume. A-type veinlets are rare but locally present. Chalcopyrite and pyrite are the dominant sulphide minerals. The highest gold and copper grades in drill core are associated with early biotite + magnetite + chalcopyrite associated with dense array of A- and B-type quartz veins, overprinted by phyllic alteration. In places the mineralization has been subject to near surface oxidation and leaching to form supergene chalcocite.

At higher elevations to the south of Kestane, the Kunk-Kumlugedik hilltops are characterized by advanced argillic alteration (quartz-alunite-dickite) surrounded by zones of argillic and propylitic alteration. Skarn-related alteration (magnetite-epidote) is located to the southeast of Kestane in the Bakirlik and Bostanlikbasi areas.

The geology of the Halilaga area is affected by post mineral faults of the North Anatolian Fault System characterized by ENE-WSW strike-slip faults, with subsidiary WNW-ESE striking faults.

250 mm diameter blast hole drills are planned to perform the bulk of the production drilling in the mine (both mineralized and waste rock). The hydraulic drill with a 115 mm diameter bit would be used for secondary blasting requirements and may be used on the tighter spaced patterns required for pit development blasts. The main loading and haulage fleet is planned to consist of 40 t haul trucks, loaded primarily with the diesel powered 7 m3 front shovels or the 7 m3 wheel loader, depending on pit conditions.

As pit conditions dictate, the D9-class dozers are planned to rip and push material to the excavators and maintaining the waste dump.

The additional equipment is planned to be used to maintain and build access roads and to meet various site facility requirements, including stockpile maintenance and further exploration development.

The Halilaga process plant and associated service facilities are designed to process 25,000 t/d of ROM material, to produce copper concentrate, gold doré and tailings. The proposed process includes crushing and grinding of the ROM material, rougher and cleaner flotation, regrinding, cyanide leaching, cyanide detoxification, gold room and dewatering of copper sulphides and is amenable to the mineralization type at Halilaga. The flotation and cyanide destruction tailings would be thickened before placement in the TSF.

Primary Crushing
The gyratory crusher is proposed as a permanent installation that would take ROM material and produce a product of 80% passing 150 mm. Haul trucks are planned to supply ROM material to the primary crusher dump pocket, where they would unload into one of two dump aprons. The dump pocket would have a hydraulic rock breaker to reduce any oversize rocks that may clog the crusher feed. The gyratory crusher would process the ROM mill feed rock at ........