Resource Characterization & Investment Context

The “Brownfield Boom”: Tailings as a Strategic Asset Class

Tailings retreatment offers a unique risk‑reward profile: zero geological exploration risk, established surface infrastructure, and speed to market. Unlike underground mines, the resource is already mined, crushed, and on surface.

However, the metallurgical risk is elevated because the “easy gold” was likely recovered during the original processing. What remains is typically the material that the historical plant could not liberate or could not retain.

For investors, this means tailings projects are attractive but require a metallurgy‑first mindset. The grade alone does not tell the story — the mineralogical behavior does.

The “3 g/t” Anomaly: Implications for Metallurgy

A grade of 3.0 g/t Au in tailings is exceptionally high compared to industry averages (e.g., DRDGOLD’s Ergo operates at ~0.25 g/t). This strongly suggests the gold is not “free‑milling” but is likely:

• Refractory: Locked inside sulfide minerals like pyrite or arsenopyrite.
• Preg‑Robbing: Associated with graphitic shales or natural carbon.
• Passivated: Coated in iron oxides or other inhibiting layers.

Investors must assume the material is metallurgically complex. A standard Direct CIP plant, designed for free‑milling ores, risks replicating the historical inefficiencies that left the gold in the tailings dam in the first place.