Metallurgy from SGS in the PEAMetallurgical test work was recently completed by SGS Lakefield (SGS) on a sample of oxide ore from the Kobada deposit. This testwork was carried out on behalf of an arm’s length mining company. The test programme involved sample characterisation using head analysis and mineralogy and investigation of the amenability of the samples to gold extraction using gravity separation and cyanide leaching. The results of the tests are considered excellent, demonstrating the amenability of the KBD ore to gravity concentration or cyanide leaching. The following is a summary of the test work results which are available in the final report prepared by SGS Lakefield. (project number 12238-001, April 8, 2010). A composite sample was selected from 127 separate intervals over 8 different drill holes and weighed a total of 287 kg. The individual intervals were selected to reasonably represent the entire deposit. The as-received composite sample was wet screened and cycloned to break down the clay aggregates and remove a slimes fraction. The oversize fraction was then filtered, dried and riffled into test charges. The slimes fraction (P80 11μm) made up 57% of the mass, assaying 0.13 g/mt Au, while containing just 4% of the gold. The remaining 43% of the mass, the oversize material, contained 96% of the gold and assayed 4.28 g/mt (as calculated from gravity test work). A sample of approximately 1 kg of the deslimed KBD ‘Oxide’ was submitted for size fraction analysis for gold. The result produced a calculated head grade of 1.92 g/mt Au, higher than the value obtained from the duplicate fire assays of 1.07 g/mt but lower than that obtained from gravity test work. This is an indication of the presence of ‘nugget’ gold in the Kobada ‘Oxide’ ore. The majority of the gold was distributed in the plus 75 μm to minus 600 μm size fraction, 79.5% of the gold in 54% of the mass, with 10.4% of the gold reporting to the + 600 μm representing 10.9% of the mass.