The Kainantu property is located within the New Guinea Thrust Belt, close to its northern contact with the Finisterre Terrane.

The Kainantu area is underlain by rocks of the Early Miocene Bena Bena Formation, comprising pelite, psammite, conglomerate and marl beds metamorphosed to greenschist to amphibolite grade. These are unconformably overlain by Miocene age Omaura Formation consisting of volcano-lithic sandstones and siltstones and numerous fossiliferous limestone lenses. The overlying Yaveufa Formation consists of basaltic and andesitic flows, agglomerates, volcanoclastic sandstone and limestone (Tingey and Grainger, 1976). The mid-Miocene Akuna Intrusive Complex consists of multiple phases ranging from olivine gabbros, dolerites, hornblende gabbros and biotite diorites to granodiorites.

Gold-copper deposits within the SW Pacific Magmatic Arcs have been classified into three main groups by Corbett and Leach (Corbett and Leach, 1997):

- Porphyry-related (including gold skarn).
- High sulphidation gold-copper.
- Low sulphidation (including sediment-hosted replacement).

Telescoping may overprint the varying styles of low sulphidation gold mineralization upon each other or upon the source porphyry intrusion.

Hydrothermal porphyry-related activity in the Kainantu area may have been protracted and associated with more than one intrusive phase (17 Ma to younger than 7 Ma). According to Corbett (2009), while the accepted wisdom is that porphyry Cu-Au mineralization in the Kainantu region is related to Elandora style porphyry intrusions, the coincidence of prograde alteration (Kokofimpa area; K-feldspar alteration) with Akuna-style diorite intrusions suggests alteration and mineralization may have been initiated at an earlier Akuna age and continued to an association with Elandora intrusions.

Mineralization on the property includes gold, silver and copper occurring in epithermal Au telluride veins and Au Cu Ag sulphide veins of Intrusion Related Gold Copper (“IRGC”) affinity and also less explored porphyry Cu Au systems; and alluvial gold.

The Kora-Irumafimpa (including Eutompi and Kora North) vein deposit has been demonstrated from K92 Mining’s drilling results to be a continuous mineralised structure. The April 2020 Mineral Resource Estimate reported in Section 14 of this report has produced a Kora Consolidated Resource comprising the Kora, Kora North and Eutompi deposits. Mining is currently taking place at Kora North. In addition, there remains a Mineral Resource at Irumafimpa area that has had some modern mining activity (2007-2009). The deposit occurs in the centre of a large mineralized system approximately 5km x 5km in area that has been partly delineated by drilling and comprises several individual zones of vein and porphyry-style mineralization. Peripherally, exploration activities have also identified further areas of vein and porphyry-style mineralization.

The Irumafimpa-Kora vein system (comprising the Kora, Eutompi, Kora North and Irumafimpa prospects) is interpreted to contain two stages of mineralization (Corbett, 2009). The earliest is a sulphide-rich Cu-dominant stage. This is overprinted by a quartz-rich Au-dominant crustiform quartz vein to breccia system with high grade gold associated with tellurides (e.g. Calaverite AuTe).

K92ML made a strategic decision in early 2018 to cease mining activities at Irumafimpa and to devote its resources instead to development of and production from Kora North.

Kora North consists of three modelled sub parallel mineralisation zones; from east to west K1, K Link(KL) and K2.

The K1 and KL zones are generally narrow sub-vertical zones, up to approximately 5m in width. Structurally, K1 and K2 veins are similar but mining to date by K92ML in both veins has indicated variable ground conditions, ranging from poor to good. Mining in K1 has revealed poorer ground conditions compared to K2, due mainly to a fault structure on the western wall of the K1 vein. The instability associated with the fault requires that wall exposures are limited to a maximum of 5m in height. This has resulted in selection of cut and fill mining for K1 and also for KL, in either 2.5m high lifts mined by air-leg, or 5m high lifts mined by mechanised drill jumbo.

To-date K2 has also been mined by cut and fill, but this was for production assurance reasons. It is anticipated that the better ground conditions in K2 will suit a long hole stoping method. Although longhole stopes are considerably larger than for cut and fill, longhole stoping is still a relatively selective mining method which allows extraction of high grade, yet relatively narrow, ore zones. The
proposed longhole stoping method for K2 is based on drilling and blasting ore in vertical rings from drives spaced 15m apart vertically, forming stopes 19m high. Stope widths will range from 3m to 14m and strike lengths will vary, depending on ground conditions. NB: The average MSO stope width is 6.4m but most are less than 8m in width as only 7% of the MSO stope shapes are greater than 8m wide. Stopes will be extracted along strike and in a bottom-up sequence, with each stope progressively backfilled for stability and to provide a working base for the next stope above.

There may be instances where localised poorer ground conditions necessitate cut and fill in K2. Similarly, if the western K1 fault is less prevalent than expected, improved conditions in K1 may allow longhole stoping. As further geotechnical information is obtained, a combination of the cut and fill and longhole stoping mining methods will be applied throughout the K1 and K2 resource.

Waste rock from Kora North Phase development mining will be the primary backfill material when available. Exploration development or surface waste rock will be alternative fill sources when local development waste is unavailable.

K2 Longhole Stoping
Waste rock backfill for K2 longhole stoping will closely follow the stope blasting face to reduce the strike length of hanging wall and footwall left open at any time. The void is filled from one end of the stope with dumped waste rock while ore is being extracted at the other end. A gap is maintained between the filling and extraction fronts to minimise dilution.

In poor ground conditions, Modified Avoca longhole stoping will be required, whereby the waste
backfill is placed tight against the stope blasting face to maximise support for the stope walls.

K1 and KL Cut and Fill
a 2.5 or 5.0m high slice of the mineralised vein is drilled and blasted, then mucked with a load-haul-dump (LHD) unit. Once all ore from a slice has been loaded out, waste rock is trammed back into the void by LHD, to build up a platform from which to extract the next slice of ore. The top of this waste rock will become the floor of the next lift in the mining sequence.

The crushing circuit consists of primary jaw crusher and secondary cone crusher following downstream milling circuit consisting of Ball mill and cyclone.

The Plant Expansion to 400,000 tpy throughput capacity has been successfully completed in June 2020.

Jaw crusher liner wear and capacity was optimized by converting existing pan feeder to grizzly finger feeder to bypass fines from jaw crusher.

A new larger secondary crusher (J35/TC1000 or equivalent) was installed, and the existing crusher was relegated to standby service.

The existing 150CVX cyclones was upgraded to a 6 x 250CVX cyclone pack to meet the higher feed rate and recirculating load. Mass balance and cyclone selection is based on a 400ktpa throughput (50tph).

The Kainantu processing plant is located approximately 7km from the opening of the 800 portal which accesses the Irumafimpa Mine. Simple processing technology was used to treat Irumafimpa ore. Following crushing, screening and grinding the sulphide bearing material was separated from the nonmineralized host rock by flotation. The design throughput of the plant was 21 tonnes per hour (170,000 tpa) and approximately 10% of the ore was recovered as a high-grade gold bearing flotation
concentrate with the waste material pumped to an engineered tailings storage facility. The gold bearing concentrate was packed in containers and trucked to Lae from where it was shipped to a smelter/refinery for the recovery of the gold.

The Process Plant consisted of the following unit processes:
- Ore Receiving and Crushing
- Grinding and Classification
- Differential Flotation
- Flotation tailings deposition in the tailings storage facility
- On-site reagent s ........