The Kinsevere Copper deposit is a sedimentary hosted copper deposit. The deposit is hosted in moderately to steeply dipping Neoproterozoic sedimentary formation of the Roan group of the Katanga stratigraphy in the Mine Series subgroup of Katangan African Copper belt.

On surface, the Kinsevere Copper deposit has been mapped as made of three separate Mine Series fragments (large breccia clasts of the Mine Series) whereby the first two fragments are situated along a major N-S oriented fracture and separated by a sinistral strike-slip fault, while the third fragment, called Kinsevere Hill, is situated along major NW-SE fracture and separated from the other fragments by another sinistral strike-slip fault. All these fragments are affected by fractures and breccias.

The sulphide, transitional and oxide mineralisation in the Kinsevere copper deposit are either disseminated in recrystallised layers or infilling bedding plans, reactivated bedding, fractures and joints. Sulphide mineralisation includes chalcopyrite, bornite, chalcocite and pyrite. Oxide mineralization is dominated by malachite with lesser chrysocolla. A transitional zone exists between the primary and oxide zones with both a horizontal trend, controlled by ground water movements, and a sub vertical trend controlled by bedding and structures. Transitional copper species include chalcocite, cuprite, covellite and native copper. This zone is known as the TMO (transitional/mixed ore) zone.

The method for Ore Reserves estimation included: mine dilution modelling, pit optimisation, final pit and phase designs, consideration of mine and mill schedule, all modifying factors and economic valuation.

Kinsevere mine is an open pit operation that is mining and processing oxide copper ore. The operation uses a contract mining fleet of excavators and both rigid body and articulated dump trucks along with a fleet of ancillary equipment.

This mining method is appropriate for the style and size of the mineralisation.

The pit optimisation was based on a mining model based on the 2019 Mineral Resources block model, and the strategy for the final pit selection was based on a revenue factor 1 (RF=1.0). The RF 1.0 pit shell is used across all assets in the MMG Group. Final pit designs incorporating further practical mining considerations were carried out using these optimisation shells.

Mining dilution is based on localised mining dilution modelling with an additional 7% unplanned dilution and 7% unplanned ore loss (was 10% and 5% respectively in 2018 Ore Reserves). The dilution and ore loss modelling were designed to reflect historic reconciliation data (2019 reconciliation study) of areas that are reflective of future mining. The combination of the planned and unplanned dilution and ore loss, effectively result in a reduction in metal of approximately 10% compared with the Resource Model.

Minimum mining width (bench size) is typically in excess of 45m but is ~35m in some isolated areas during stage development.

No Inferred Mineral Resources material has been included in optimisation and/or Ore Reserves reporting.

All required infrastructure is in place. Mining rates are planned to stay relatively constant and is within the capacity of the existing fleet and mining contractor capability.

Crushing and grinding
- Mineral sizer – this breaks up the rock prior to the semi autogenous grinding (SAG) mill.
- Ore grinding – this uses a single stage SAG mill operating in a closed circuit. This produces a 200 micron feed, which is then directed to the leach tanks. The SAG mill operation is unusual in that sulphuric acid is added to the circuit to start the leach process early in advance of the leach tanks. The leaching process involves the extraction of copper from solid copper oxide using the sulphuric acid solution. Although the acid concentration in the SAG mill circuit is lower than that in the leach tanks, it is very effective because of the high kinetic energy in the SAG mill. The SAG mill has a mild steel shell with an epoxy coating on the inside to prevent acid erosion. The mill is topped up with concentrated acid as necessary.

Kinsevere mines and processes oxide ore. This enables the operation to use the conventional solvent extraction/electrowinning (SXEW) process (Exhibit 3) to produce A grade refined 99.99% copper cathode.

The Kinsevere operation was commissioned in 2007 as a Heavy Media Separation (HMS) operation with a copper concentrate product. The current SXEW plant was completed in 2011 and the HMS plant was closed.

Elements of the current plant and SXEW process include:

Leach tanks – these are atmospheric agitated leach tanks. The residence time in the tanks is six hours. The leached slurry, which contains both copper in solution and un-dissolved copper in solids, passes to the high-grade thickener. High-grade thickener – Overflow from the thickener containing copper in solution, mainly as copper sulphate, passes to a high-grade pinned bed clarifier for further upgrading. Slurry underflow from the thickener, which contains copper not yet dissolved, passes to the co ........