A continued exploration programme has further defined the geology of the Tolukuma vein system, verified the resource
indicated by Newmont, and identified potential for additional mineralisation. The resource at Tolukuma Hill, designated as
zone C, is a mine recoverable 432,000 t at 18.1 g/t Au & 46 g/t Ag. Mining will be by a combination of open pit and
underground at a rate of 100,000 t per annum. Processing will be by SAG mill, gravity circuit and CIL plant. A diatreme
breccia, localised at an intersection of structures and a relationship of gold to base metal sulphides, are indicative of a strong
porphyry association. Typical epithermal features such as crustiform banded quartz and quartz pseudomorphing platy
calcite are also present and locally contain lesser gold mineralisation. Pre-existing dilatant structures have acted as a host to
the ore fluids, resulting in the formation of the semi-continuous Tolukuma-Gulbadi veins over a 1100 in strike. A fluid flow
model suggests that mineralizing fluids were sourced from a diatreme margin and migrated laterally along dilatant
structures. Bonanza gold grades are interpreted to be derived through fluid quenching in the flexure between a hanging wall
split, which hosts much of the Tolukuma Hill resource, and the feeder graben structure. Thus, the relationship between the
pre-mineral structural geometry and fluid upflow at the margins of a diatreme breccia, controls the ore setting.