BACKGROUND

The Selinsing Gold Mine project is located at Bukit Selinsing near Sungai Koyan, approximately 65km north of Raub and 30km west of Kuala Lipis. A trip to Selinsing from Kuala Lumpur may take between 2 to 3 hours depending on traffic and weather condition.

Selinsing has a long mining history. Mining commenced prior to 1888 and has operated intermittently through to 1966. Underground and open cut mining, together with tailings treatment has produced an estimated 85,000 ounces of gold during this period. Fast forward to present day between 2003 and 2005, treatment of the tailings using heap leach extraction produced 6,624 ounces. In October 2008, a new gold treatment plant was built resulting in the first gold poured from the gravity circuit 12 months later. July 2009 saw open pit mining started at the location and began hauling ore material to the ROM pad for production and by February 2010 the projects’ own carbon-in-leach (CIL) circuit commenced commissioning.

The Selinsing deposit occurs along the north striking Raub, Bentong Suture, and a major tectonic feature that runs through peninsular Malaysia. The deposit is hosted by a series of auriferous quartz veins and stockworks of quartz veinlets in a package of sheared calcareous epiclastic sediments. Gold mineralization at Selinsing is associated with high grade quartz veining and associated sericitization and silification within a major shear zone.

The Selinsing gold mine project contains a resource comprised of an indicated mineral resource of 4.82 million tonnes at 1.49 gpt Au, using a cut-off of 0.59 gpt Au for contained ounces of 231,000 ounces of gold, and an inferred mineral resource of 10.32 million tonnes at a grade of 1.17 gpt Au for contained ounces of 388,000 ounces f gold at similar cut-off grade. The resource is a near surface, open pitable deposit containing gold bearing material amenable to CIL treatment, with comprehensive metallurgical test work showing 92% to 95% recovery by CIL.