The Sulphur Springs Copper-Zinc deposit is hosted by the Kangaroo Caves Formation, a volcano-sedimentary sequence within the north-north easterly trending tectonostratigraphic domain known as the Lalla Rookh–Western Shaw Corridor (LWSC) in the central east of the Archaean Pilbara Craton. The deposit is a well-preserved example of an Archaean volcanogenic massive sulphide (VMS) style deposit in a low-grade metamorphic terrain.

The Sulphur Springs mineral deposit is a single, strata-bound VMS mineralising event, which has been off-set into two massive sulphide lenses (East and West) by a post-mineralisation sub-vertical fault. The strike length of the deposit (East to West) is 500m with each lens dipping to the north at approximately 45-55°.

Mining of the Sulphur Springs deposit has been assumed to be by a combination of open pit and underground methods. The open pit mine life is currently projected to be approximately four years immediately followed by the underground for a further six years. The selected mining method, design and extraction sequence are tailored to suit orebody characteristics, minimise dilution and ore loss, utilise planned processing plant capacity and expedite free cash generation in a safe manner. Mining schedules have been based on realistic mining productivities with readily achievable mining rates along with consistent material movements.

Open pit mining dilution and recovery modifying factors were simulated by modelling to a Selective Mining Unit (“SMU”) of 5mX x 5mY x 2.5mZ. The re-blocking technique dilutes fully into the SMU size and the resultant model is then used as a diluted model.

Key parameters used as part of the pit optimisation process included (but are not limited to):
- Assumed average of 1.25Mtpa of ore processing;
- Mining costs derived from submissions received from mining contractors who offered pricings for the previous study;
- Metallurgical recoveries provided by Lycopodium (who completed test work in conjunction with ALS);
- Processing and infrastructure costs provided by Lycopodium (based on an updated and optimised plant design and infrastructure requirements).

The intention is to mine the Sulphur Spri ........

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