Mining Strategy

Plan View of Kobada Exploration Concession

Kobada Exploration

As a result of the exploration and resource growth potential, the Company believes that it can quickly add shallow and economically mineable resource into the production plan.

This is an important facet of the Kobada Project, particularly in light of the low (but consistent) tenor of gold grades that comprise the Mineral Resource Estimate.

Significant value can be added to the project by maintaining a sub 1 to 1 strip ratio (that is waste to ore ratio). This allows the final pit cut backs to be scheduled later in the mine plan, improving cash flows and all economic measures (such as NPV and IRR).

The deployment of exploration drills to test the extensions of the main shear zone, splay and parallel structures, initially down to a depth of 25m may significantly alter the projects economics within a short period from the commencement of mining operations.

This is about adding low cost mineable ounces.