Premier Gold Project

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					    Cleveland Mining Company Ltd.
         Premier Gold Project
          Project Description




                                    ENT-0103-CDG R1


                                    Prepared by

                                    Matt Keenan
                                    Senior Mining Engineer


                                    Entech Pty Ltd




entech   .                          6 September 2011
entech.                                                                                                Premier Gold Project

                                                                                                                    Perth Office

                                                                                                               75 Thomas Rd
Doc Ref:                                                                                                    Subiaco WA 6008
ENT_0103_CDGR1.docx

Print Date:
                                                                                                       Tel:       0418 940 433

Number of copies:
                                                                                                       Entech Pty Limited
Entech: Electronic Archive                                                                          ABN: 23 143 135 773
Cleveland Mining Company Ltd.: Word Copy




Principal Author:         Matt Keenan BEng                 Hons     Signature:
                          (Mining)/BComm (Man)                                     DRAFT
                                                                    Date:          6 September 2011

Contributors:


Principal Reviewer:       Shane McLeay MAusIMM, BEng                Signature:
                          Hons (Mining)
                                                                    Date:          6 September 2011

Reviewers:

Important Information:
This Report is provided in accordance with the proposal by Entech Mining Ltd (“Entech”) to Cleveland Mining Company
Ltd. and the terms of Entech’s Consulting Services Agreement (“the Agreement”). Entech has consented to the use and
publication of this Report by Cleveland Mining Company Ltd. for the purposes set out in Entech’s proposal and in
accordance with the Agreement. Cleveland Mining Company Ltd. may reproduce copies of this entire Report only for
those purposes but may not and must not allow any other person to publish, copy or reproduce this Report in whole or in
part without Entech’s prior written consent.
Unless Entech has provided its written consent to the publication of this Report by Cleveland Mining Company Ltd. for the
purposes of a transaction, disclosure document or a product disclosure statement issued by Cleveland Mining Company
Ltd. pursuant to the Corporations Act, then Entech accepts no responsibility to any other person for the whole or any part
of this Report and accepts no liability for any damage, however caused, arising out of the reliance on or use of this Report
by any person other than Cleveland Mining Company Ltd.. While Entech has used its reasonable endeavours to verify the
accuracy and completeness of information provided to it by Cleveland Mining Company Ltd. and on which it has relied in
compiling the Report, it cannot provide any warranty as to the accuracy or completeness of such information to any
person.

NOTE:     Any reference to “ore” is as a generic term and implies no economic significance as defined in the Australasian Code for the
          Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004 edition (the JORC Code). No Reserve has been
          stated in accordance with the JORC Code or any other similar codes.
                        Premier Gold Project

                          Project Description




                    1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                              Cleveland Mining Company Limited ABN 85 122 711 880
                                                   TABLE OF CONTENTS
1.     OPERATIONAL OVERVIEW..................................................................................................... 6
2.     HISTORY ............................................................................................................................... 8
3.     GEOLOGY ............................................................................................................................. 9
       3.1.1. Regional Geology ............................................................................................................ 9
       3.1.2. Local Geology .................................................................................................................. 9
4.     OPEN PIT MINING ............................................................................................................... 11
       4.1.1.   Overview ....................................................................................................................... 11
       4.1.2.   Open Pit Design ............................................................................................................. 11
       4.1.3.   Drilling and Blasting ...................................................................................................... 12
       4.1.4.   Waste Management ..................................................................................................... 13
       4.1.5.   Mining Fleet and Ancillary Equipment .......................................................................... 14
       4.1.6.   Pit Dewatering .............................................................................................................. 15
5.     PROPOSED MINING SCHEDULE............................................................................................ 17
6.     HISTORICAL TAILINGS PROCESSING ..................................................................................... 18
7.     OPEN PIT MINERALS PROCESSING ....................................................................................... 19
       7.1.1.   Overview ....................................................................................................................... 19
       7.1.2.   Crushing ........................................................................................................................ 19
       7.1.3.   Milling and Gravity Concentration ................................................................................ 21
       7.1.4.   Cyanide Circuit .............................................................................................................. 21
       7.1.5.   Tailings Disposal ............................................................................................................ 23
       7.1.6.   Process Resource Requirements.................................................................................... 23
       7.1.7.   Proposed Milling Schedule ............................................................................................ 25
8.     INFRASTRUCTURE ............................................................................................................... 27
       8.1.1.  Transportation Corridors ............................................................................................... 27
       8.1.2.  Explosives Plant and Magazine ..................................................................................... 27
       8.1.3.  Workshop, Fuel Farm, Washdown Bay and Laydown Yard/Stores ............................... 28
       8.1.4.  Resource Requirements ................................................................................................. 29
9.     PERSONNEL ........................................................................................................................ 30
10.      SUMMARY OF OPERATIONAL ENVIRONMENTAL CONTROLS............................................. 31
       10.1.1. Hydrocarbons ................................................................................................................ 31
       10.1.2. Non-hydrocarbon waste................................................................................................ 31
       10.1.3. Soil and ground disturbance ......................................................................................... 31
       10.1.4. Water ............................................................................................................................ 31


                          1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
      Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                    Cleveland Mining Company Limited ABN 85 122 711 880
        10.1.5.         Dust ............................................................................................................................... 32
        10.1.6.         Noise.............................................................................................................................. 32
        10.1.7.         Mined Historical Tailings Storage ................................................................................. 32
        10.1.8.         Sensitive Processing Reagents Transport and Storage ................................................. 32
        10.1.9.         Washdown Bay ............................................................................................................. 32
        10.1.10.          Workshop .................................................................................................................. 33


Figure 1: Location of Premier Operation (Google Maps, 2011).............................................................................. 6
Figure 2: Location of Premier relative to Crixas and Serra Grande (Google Earth, 2011) ...................................... 7
Figure 3: Local Geology ......................................................................................................................................... 10
Figure 4: Pit Layout ............................................................................................................................................... 12
Figure 5: Waste Dump Layout .............................................................................................................................. 14
Figure 6: Raw Water Reservoir ............................................................................................................................. 16
Figure 7: Historical Tailings Locations ................................................................................................................... 18
Figure 8: Proposed Final Process Flow Diagram ................................................................................................... 20
Figure 9: Preliminary General Arrangement of Processing Plant ......................................................................... 22
Figure 10: Proposed TSF Locations ....................................................................................................................... 23
Figure 11: Proposed Site Layout ........................................................................................................................... 26
Figure 12: Proposed Magazine Location ............................................................................................................... 28
Figure 13: Laydown Yard, Workshops, Fuel Farm, Stores .................................................................................... 29




                          1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
      Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                    Cleveland Mining Company Limited ABN 85 122 711 880
1. OPERATIONAL OVERVIEW
The Premier Gold Project (“PGP”) is a brownfields asset located in the state of Goias in the Central-
West region of Brazil. The PGP is 260km to the NE of the national capital Brasilia (400km road
distance), and 7km SE of the nearest town Crixas. The PGP is a joint venture between Cleveland
Mining Ltd (“Cleveland”) and Edifica Participações, with Cleveland providing operational
management.




                               Figure 1: Location of Premier Operation (Google Maps, 2011)




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
                    Figure 2: Location of Premier relative to Crixas and Serra Grande (Google Earth, 2011)

Cleveland will commence mining at the PGP by continuing the old pit to the north using conventional
open pit mining techniques. Cleveland will construct a small processing plant to mill approximately
270,000 tpa onsite. Cleveland also intend to mine and process old Metago and garimpo tailings on
site.

Waste and ore mining in the pit will commence in Month 1 and ramp up to full production by Month
6. The total timeframe for mining is approximately two years.

Processing will commence in Month 1 ramping up to 40tph at 75% utilisation by Month 4. This
corresponds to a 30tph average throughput. Processing will be undertaken for approximately 2.5
years.

The mineral inventory for the proposed Premier project currently stands at 523,721t @ 2.11g/t, for
a contained metal amount of 35,596 oz.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
2. HISTORY
The state mining company of Goias, Metago, held the tenements containing the Premier mine and
surrounding areas from 1975 until 2002. Metago discovered commercial quantities of gold at
Premier and extracted approximately 75,000t @ 2.5g/t (approx 5,800 ounces) from a small open pit
operation from 1978 to 1984. Metago was never issued with a mining license for the area but
instead had approvals, from the National Department of Mineral Production (DNPM), to extract
under a trial mine/bulk sample arrangement.

The open pit mining was carried out to extract the oxide ore using conventional drill and blast
techniques. The broken ore was loaded by a front-end loader into 8 tonne tipping trucks and
transported to the processing facility.

At the base of oxidation Metago installed an inclined shaft in the foot of the NE wall of the pit to
extract fresh rock material. The inclined shaft dips at approximately 12° to the NNE and extends for
approximately 43m. A gallery was excavated at the end of the shaft with the approximated
dimensions of 30mx13mx1.7m. The underground mining was performed using conventional drill and
blast techniques with airleg pneumatic drills.

The Metago material processing circuit included a gravity circuit and a traditional cyanide leaching
circuit. The gold was removed from the cyanide liquor by electro winning and finally smelting into
gold bullion. Tailings were stored behind a dam at the foot of the hill.

In the period after Metago completed mining, illegal small-scale garimpo mining was carried out on
the tenement.

Cleveland acquired the Premier tenements in 2009, and the company has carried out extensive
geological exploration on the tenements since this time.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
3. GEOLOGY
             3.1.1.        REGIONAL GEOLOGY
The Crixas Greenstone belt is a metamorphosed sequence of volcanic and sedimentary rocks
contained within the Goias Massif, which is a poorly understood crustal fragment composed of
Archean, Paleoproterozoic and Mesoproterozoic lithologies within the Tocantins Province. The
Tocantins Province is a large Neoproterozoic orogen developed in response to the convergence of
three continental blocks the Sao Francisco-Congo continent, Amazon continent, Parana Block, and
Parana Basin in the east, west, south and north, respectively, as part of the Brazilian/Pan-African
orogen.

The Goias Massif is interpreted as a micro-continent or exotic terrain accreted to the Neoproterozoic
Tocantins Province during the Braziliano Orogeny. The Goias Massif consists of Archean granite-
greenstone core surrounded by Paleoproterozic units; Paleoproterozic to Mesoproterozoic platform
sedimentary cover of the Serra da Mesa Group; and, Mesoproterozoic to Neoproterozoic mafic and
ultramafic layered complexes of Barro Alto, Niquelandia and Canabrava and associated meta-
volcaniclastic sedimentary rocks. The Crixas Belt is within the Archean greenstone core.

             3.1.2.        LOCAL GEOLOGY
The Premier Gold Project is hosted within the Crixás Greenstone Belt located approximately 7km
south of the town of Crixás. The project occurs within volcanic and sedimentary rocks of the Rio
Vermelho Formation of the Crixás Greenstone Belt.

The stratigraphic sequence dips approximately 14 degrees towards the north and is strongly
deformed by the regional fold and thrusting events.

The mineralisation is hosted within a shallow dipping, graphitic, black shale. The mineralisation is
located adjacent to the basal contact of the black shales and greywacke sequence. This contact is
characterised by strong deformation and moderate to strong quartz veining. The footwall contact is
identified by the presence of a garnet bearing chlorite schist (refer to Figure).

The mineralised zone has been named the “Lower Quartz Zone” (LQZ). The Lower Quartz Zone is not
stratabound and is associated with increased deformation, quartz veining, dolomitisation and an
increase in pyrite, arsenopyrite and pyrrhotite. The mineralised zone dips approximately 10 to 18
degrees towards the north and the geological and grade continuity plunges shallowly towards 300
degrees. The Lower Quartz Zone is interpreted as a mineralised sheet with an average vertical
thickness of 3.1m.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
                                            Figure 3: Local Geology




                    1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                              Cleveland Mining Company Limited ABN 85 122 711 880
4. OPEN PIT MINING
             4.1.1.        OVERVIEW
The PGP will be mined using conventional open pit mining techniques. Waste and ore rock will be
drilled and blasted using ANFO-based explosives and loaded onto 25t fixed body trucks with 40t
sized excavators. Working bench heights will be 5m, with flitch heights of between1-2.5m. Waste
will be trucked to waste dumps to the SE and SW of the pit. Ore will be trucked to the ROM pad for
processing. Ore will only be mined during daylight hours and geologists will spot the ore and direct
the excavator operators.

Mining will advance northwards along the general direction of the dip of the orebody. As the
orebody is open at depth, the final pit limit represents an economic rather than structural boundary.

Mining will be carried out over a 27-month period. Total material movement will be approximately
5.7Mt, consisting of:

       5.2Mt of waste; and
       524,000t of ore at 2.11g/t.

Mining operations will be continuous over a 24-hour period, utilising 3 x 8 hour shifts.

             4.1.2.        OPEN PIT DESIGN
The PGP is a thin, tabular gold deposit shallow-dipping in a northerly direction into a hill. The pit
floor will follow the footwall contact of the orebody. The pit will mine the ore around the contour of
the hill until the amount of overburden renders the deposit sub-economic.

The final pit footprint will be approximately 700m wide along an east-west axis, with a north-south
width of between 150-360m and an area of approximately 14 Ha. Including clearing around the pit
crest, the overall area of disturbance for the pit will be 16.1Ha.

The final pit wall will have a maximum height of 70m.

The finalised pit wall characteristics will be determined through a geotechnical study at a later stage
after mining has commenced.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
                                                  Hill




                                                                                                      360m

                                                         700m




                                         Old Pit Wall




                                                 Figure 4: Pit Layout




             4.1.3.        DRILLING AND BLASTING
It is expected that the majority of the material will require drilling and blasting techniques for
fragmentation. However, where rock conditions permit in the upper weathered zone, material may
be excavated with no drilling and blasting.

Blast drill patterns will be designed by the engineer and laid out by surveyors along with the drill and
blast crew. Track or wheel mounted diesel-powered RC drill rigs will drill the holes, and grade control
sampling will be carried out on the blast hole cuttings. Drill holes will be between 89-165mm
diameter, with the majority being 102mm-127mm. Blast hole depths will be 5m in ore zones and up
to 10m in waste, with up to 2m of sub-drill.

Blasting will mainly employ ANFO and/or emulsion products. Pre-splitting wall blasting techniques
may also be used. All explosives handling and on-site transport will be carried out by approved and
appropriately trained personnel. Explosives will be delivered as required and there will be minimal
sleep time in holes before blasting is carried out. Appropriate stemming material will be used to
minimise flyrock and ensure optimum fragmentation.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
             4.1.4.        WASTE MANAGEMENT
Approximately 5.7Mt of material will be moved at the PGP. 5.2Mt of waste and 0.5Mt of ore will be
mined, resulting in a strip ratio of approximately 10:1.

Waste material will initially be stockpiled on two waste dumps that will follow on from the old
Metago dumps. Waste dump construction will mainly be via end-tipping from the design top level of
the landform and progressively pushing the waste material out with a dozer to create a final
landform footprint. As mining progresses, waste may be paddock-dumped as backfill into the pit to
reduce haulage costs and minimise land disturbance.

The eastern waste dump will initially be constructed to fill the gully to the south until the toe abuts
the dam. The next phase of construction will be to the east around the hill to conform to the natural
contours as much as possible. This will create a flatter topography between the pit and the eastern
hill. This dump will have a footprint of approximately 14 Ha.

The western waste dump will be pushed west until the toe abuts the power line corridor. This waste
dump will have a footprint of approximately 4 Ha.

The final waste dump slopes will be designed so that the structure is safe and stable, and drainage
will be controlled so as to minimise erosion.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
                   Pit



      Power Line


                                                                                 Phase 2: Eastern Hill


                           Metago Waste Dumps

   West Waste Dump                                       Phase 1: Southern      East Waste Dump
                                                               Gully




                                             Figure 5: Waste Dump Layout




             4.1.5.        MINING FLEET AND ANCILLARY EQUIPMENT
The table below summarises the expected mining diesel fleet numbers and fuel usage:




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
                                                 Maximum            Average Diesel          Total Diesel Usage
            Equipment Type                        On-site           Usage l/month            Over Project Life
 Excavator (40t)                                    2                  10,900                    294,300
 Haul Trucks (25t)                                  7                  36,300                    980,100
 Grader (Cat 12H or equivalent)                     1                  11,600                    313,200
 Dozer (Cat D6 or equivalent)                       1                  15,100                    407,700
 Blast Hole Drills (Atlas Copco Roc D9
 or equivalent)                                        2                 11,600                    313,200
 Water Cart (25t)                                      1                 3,100                      83,700
 Service Truck (10t)                                   2                 3,100                      83,700
 Front End Loader (Cat 938 or
 equivalent)                                           2                 18,700                    504,900
 Light Vehicle (Ford Ranger or
 equivalent)                                           6                  2,100                    56,700
 Mobile Crusher                                        1                  2,100                    56,700
 Miscellaneous equipment (lighting
 towers, pumps etc)                                   NA                  3,900                    105,300
                                                                                  Total:         3,199,500 L


             4.1.6.        PIT DEWATERING
In-pit sumps will be dug at the lowest points of the pit floor and any water encountered will be
trapped and pumped via HDPE pipe to the raw water reservoir south of the office. This water will
then form part of the site reservoir for process water and dust suppression requirements. It is not
expected that there will be significant inflows into the pit due to encountered groundwater.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
                                                                 Raw Water Reservoir




                                               Offices




                                         Figure 6: Raw Water Reservoir




                    1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                              Cleveland Mining Company Limited ABN 85 122 711 880
5. PROPOSED MINING SCHEDULE



                         Unit    Mth 1     Mth 2     Mth 3      Mth 4     Mth 5     Mth 6      Mth 7     Mth 8      Mth 9     Mth 10       Mth 11   Mth 12
           Waste Mined    t     95,896    114,053   171,080   184,142    227,355   227,355    252,617   252,480   252,184    252,184   252,184      251,832
           Ore Mined      t     41,136    22,979    34,468    21,406     19,302    19,302     21,447    21,584    21,879     21,879    21,879       22,232
           Total Mined    t     137,032   137,032   205,548   205,548    246,657   246,657    274,064   274,064   274,064    274,064   274,064      274,064
           Total Mined   bcm    50,753    50,753    76,129    76,129     91,355    91,355     101,505   101,505   101,505    101,505   101,505      101,505
           TKM           tkm    66,459    67,367    101,051   101,704    122,364   122,364    135,960   135,953   135,938    135,938   135,938      135,920
                                Mth 13    Mth 14    Mth 15     Mth 16    Mth 17     Mth 18    Mth 19     Mth 20    Mth 21     Mth 22       Mth 23
           Waste Mined    t     246,189   246,189   249,032   250,179    250,165   249,973    252,235   255,407   258,076    282,467   137,201
           Ore Mined      t     27,875    27,875    25,031    23,885     23,899    24,091     21,829    18,657    15,987     16,909    8,187
           Total Mined    t     274,064   274,064   274,064   274,064    274,064   274,064    274,064   274,064   274,064    299,375   145,387
           Total Mined   bcm    101,505   101,505   101,505   101,505    101,505   101,505    101,505   101,505   101,505    110,880   53,847
           TKM           tkm    135,638   135,638   135,780   135,838    135,837   135,827    135,940   136,099   136,233    148,842   72,284




    Approximate SG 2.7t/bcm.

    Total Material Movement: 5.7Mt (approx. 2.1M bcm)




                                              1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
                          Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                                        Cleveland Mining Company Limited ABN 85 122 711 880
6. HISTORICAL TAILINGS PROCESSING
The state mining company of Goias, Metago, carried out open pit mining at Premier in the late
1980’s. Approximately 75,000t of ore was processed. Tailings from the process plant were stored
behind a dam in the watercourse at the bottom of the hill.

Following completion of mining by Metago, illegal garimpeiro mining activity was carried out on the
Premier tenement. There are several areas where tailings plumes from garimpeiro operations have
been discovered.

Cleveland propose to mine and process these historical tailings for the following reasons;

       Historical processing methods were less sophisticated and are likely to have left a significant
        amount of gold within the tailings;
       The tailings represent an environmental hazard as contaminants such as mercury have been
        encountered and the Metago dam and garimpeiro plumes are not quarantined from water
        flows and the surrounding environment.

Mining of the tailings will be undertaken during the dry season using a 40t digger and 25t trucks. A
metallurgical study will be undertaken to determine if any treatment needs to be done to the
tailings before inputting into the Cleveland plant. Following extraction, the tailings will be sent to the
modern tailings storage facility, thus removing them from the environment.




                                                  Garimpo Tailings




                                       Metago Tailings




                                         Figure 7: Historical Tailings Locations




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
7. OPEN PIT MINERALS PROCESSING
             7.1.1.        OVERVIEW
The processing plant at PGP will be located in the same area as the historical Metago mill. The
process flow diagram is attached as Figure 4. The plant is a standard carbon-in-leach (CIL) circuit with
crushing, milling, gravity concentration, cyanide leaching and elution and smelting components
(although the initial phase of the plant will only involve gravity concentration).

Material will be loaded into the crushing circuit using a front end loader and crushed to
approximately -10mm. From there the material will be loaded into the milling and leaching circuit.
The throughput of the plant will be 40tph at estimated 75% utilisation (representing an effective
throughput of 30tph), operating 3 shifts/day, for a total of approximately 270,000 tpa.

             7.1.2.        CRUSHING
Blasted material will be loaded from the ROM into the crushing circuit with a front end loader. The
crushing circuit will consist of a mobile diesel-powered primary and secondary crusher and a simple
sizing screen. The primary jaw crusher will provide material -100mm to the secondary cone crusher.
From the secondary crusher, a vibrating screen will sort all material -10mm for input into the milling
circuit. The crusher will operate for only one eight-hour shift per day, and will crush 120tph+.

Dust suppression of the crushing circuit during dry weather periods will be provided as required to
an appropriate industry standard.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
Figure 8: Proposed Final Process Flow Diagram
             7.1.3.        MILLING AND GRAVITY CONCENTRATION
Crushed material will be loaded from the crushed ore stockpile into a hopper using a front end
loader. This crushed material will slide down a chute to a fine ore silo with a small conveyor belt
feeding a semi-autogenous ball mill. Milled material will be screened to ensure particles are -1mm
before entry into the gravity concentration circuit.

The concentrator circuit will consist of a coarse gravity concentrator, a cyclone and a fine gravity
concentrator. Initially, the concentrate will report directly to the gold room and tails will report to
the historical tailings dam, which is being used for tailings storage in the first phase of the project. In
the gold room, the combined gravity concentrates will be treated on a further gravity device, such as
a Gemini table, to recover a higher grade concentrate suitable for smelting.

 In the second and final phase of the plant, the gravity concentrate product will be sent to the
intensive cyanidation circuit and the tails to the CIL circuit.

             7.1.4.        CYANIDE CIRCUIT
The cyanide circuit is planned to be installed at a date after commencement.

The gravity concentrate will undergo an intensive cyanidation process in an agitator. This process
will dissolve free gold into a liquor and separate the solids out for recirculation into the mill. The
liquor will then be sent to the gold room.

Tails from the gravity concentration will be sent to the leach tanks. Lime and cyanide are added to
the tanks at this stage. Carbon particles will be passed through the system to absorb the gold-
cyanide, and the activated particles are washed and sent to the elution column. The material
remaining in the leach tanks is sent to the tailings dam.

After elution with sodium hydroxide the resulting liquor is sent to the electrowinning circuit and the
carbon recycled to the leaching tanks.

An electrical current will be passed through the liquor and gold is precipitated out. The gold is
smelted as bullion for refining and/or sale.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
                                ROM Pad




                                                                 Crusher




                                                                                 Crushed Ore
                                                                                 Stockpile




                         Chute Feed
                         Hopper

        Concentrators                                                           Existing Water
                                                                                     Tank



          Ball Mill                                                                   Existing
                                                     Chute
                                                                                      Buildings




             Lab/Gold                                                             Stairs
             Room




                           Figure 9: Preliminary General Arrangement of Processing Plant




                    1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                              Cleveland Mining Company Limited ABN 85 122 711 880
             7.1.5.         TAILINGS DISPOSAL
Initially, tailings will be piped downhill to the old Metago tailings dam. Once the cyanidation circuit is
installed, tailings will be pumped through high pressure rated HDPE pipe to an approved tailings
storage facility (TSF) constructed specifically for the purpose. The overall tailings material requiring
storage for the life of the project is 524,000t. At an estimated density of 1.5t/m3, this represents an
overall volume of 350,000 m3. Added to this is approximately 45-50,000 m3 of old tailings from
Metago and garimpo workings, for an estimated maximum total life of mine tailings storage
requirement of 400,000 m3.

Following a site inspection, Entech recommend that the constructed TSF be located in the valley to
the east of the pit. This location is desirable as it represents the minimum risk of a discharge of
tailings migrating off the tenements. The valley to the west of the pit could be used as a secondary
location for tailings storage.




                                                                                                Eastern
        Western                                                                                Valley TSF
       Valley TSF




               Power Line

         Initial Tailings
         Storage




                                           Figure 10: Proposed TSF Locations




             7.1.6.         PROCESS RESOURCE REQUIREMENTS
The following table describes the estimated major process resource usage for the process;

                                     Usage/t Processed          Total Mine Life Usage
                        Water             1,000L                       523.7ML
                        Cyanide            1.2kg                         630t
                        Lime               1.5kg                         790t


                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
Water will be pumped through high pressure HDPE pipe from the raw water reservoir next to the
offices to the Process Water Storage located at the processing plant. Water will be delivered at a
rate of approximately 18L/s.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
 7.1.7.          PROPOSED MILLING SCHEDULE


                                 Mth 1        Mth 2        Mth 3       Mth 4        Mth 5        Mth 6       Mth 7        Mth 8       Mth 9    Mth 10
Ore Processed          t         10,000      13,000       18,000       20,000      20,000       20,000      20,000       20,000       20,000   20,000
Grade                 g/t         1.73         2.02        2.02         2.29        2.51         2.51         2.54        2.45         2.28     2.28
Gold Recovered       grams       16,326      24,923       34,508       43,876      48,245       48,245      48,707       47,092       43,691   43,691
Recovery               %         94.2%        95.0%       95.0%        95.6%       96.0%        96.0%        96.1%       95.9%        95.6%    95.6%
GOLD
                      oz          525          801         1,109       1,411        1,551       1,551        1,566        1,514       1,405    1,405
PRODUCTION
                                 Mth 15      Mth 16       Mth 17      Mth 18       Mth 19       Mth 20      Mth 11       Mth 12       Mth 13   Mth 14
Ore Processed          t         20,000      20,000       20,000       20,000      20,000       20,000      20,000       20,000       20,000   20,000
Grade                 g/t         2.07         2.04        1.99         1.98        1.95         1.93         2.28        2.27         2.04     2.04
Gold Recovered       grams       39,413      38,859       37,845       37,601      36,932       36,537      43,691       43,336       38,883   38,883
Recovery               %         95.2%        95.1%       95.0%        94.9%       94.9%        94.8%        95.6%       95.6%        95.1%    95.1%
GOLD
                      oz         1,267        1,249        1,217       1,209        1,187       1,175        1,405        1,393       1,250    1,250
PRODUCTION
                                 Mth 21      Mth 22       Mth 23       Mth 24      Mth 25       Mth 26       Mth 27      Mth 28
Ore Processed          t         20,000      20,000       20,000       20,000      20,000       20,000      20,000        2,721
Grade                 g/t         1.92         1.88        1.92         1.97        1.97         1.97         1.97        1.97
Gold Recovered       grams       36,397      35,505       36,495       37,499      37,499       37,499      37,499        5,101
Recovery              %          94.8%        94.7%       94.8%        94.9%       94.9%        94.9%        94.9%       94.9%
GOLD
                      oz         1,170        1,142        1,173       1,206        1,206       1,206        1,206         164
PRODUCTION




                                         1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
                     Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                                   Cleveland Mining Company Limited ABN 85 122 711 880
                                                          Pit
                                                                 Laydown
                                                                 Area/Workshops etc.


                                                                                    Eastern Waste Dump

Western Waste Dump

                                                           ROM Pad

                                                                                                                       Magazine
                                                Crusher

                                                                                    Processing          Plant
                                    Proposed CIL Location
         Initial Tailings Storage


                                                                                                  Raw Water Reservoir

                                                         Coreyard                Offices


                                                                      Figure 11: Proposed Site Layout


                                                 1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
                             Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                                           Cleveland Mining Company Limited ABN 85 122 711 880
8. INFRASTRUCTURE
             8.1.1.        TRANSPORTATION CORRIDORS
Mined material will only be transported on roads within the tenement boundaries. The access roads
off the tenement will be used for freight delivery and personnel movement to and from Crixas. All
these roads are unsealed. Cleveland will maintain all onsite roads and the 2.5km access route to the
main Crixas road. This will include regular application of water to haul roads for dust suppression
during dry periods. Water will be applied to the access road as required. The mine grader will
maintain both haul roads and the access road.




                                                       2.5km
                                                    Access Road
    Road from
    Crixas
                                                                                                Site Roads




             8.1.2.        EXPLOSIVES PLANT AND MAGAZINE
The magazine is proposed to be located on the eastern side of the site. There are no residential
structures or other infrastructure within 1km of the proposed explosives plant location.

All explosives storage and manufacture will comply with appropriate legislation, including Regulation
NR-19.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
                                        Pit



                                                                                   >500m

                                                                                                      Magazine




                                                                         >700m


                            Office/Plant




                                        Figure 12: Proposed Magazine Location


             8.1.3.   WORKSHOP, FUEL FARM, WASHDOWN BAY AND LAYDOWN
                  YARD/STORES
An area in the flatter region to the south of the current pit will be allocated for use as the diesel
equipment maintenance workshop, fuel storage area, contractor laydown and stores yard and
vehicle washing pad. This area will see the most traffic and will be where the majority of
hydrocarbons are stored. A turn-around bay will be located in this area for freight vehicles.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
                        Laydown Area
                        Workshops etc.




                                 Figure 13: Laydown Yard, Workshops, Fuel Farm, Stores




             8.1.4.        RESOURCE REQUIREMENTS
Water Supply

Process water will be sourced from the raw water reservoir at the bottom of the hill next to the
offices. This water will also be used for dust suppression, drilling, machinery washing and
construction.

Two water bores will be constructed to supplement this reservoir during periods of low rainfall.
These bores may also be used to source potable water for the site.

Energy Usage

Electric power for the Project will be supplied from mains power by the existing three-phase
overhead power line. Total demand will approximate 1 MW/hr.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
9. PERSONNEL
Personnel will reside in Crixas and commute to site. Operational personnel will work 8 hour shifts
around the clock. Management and admin personnel will generally work 10-hour dayshifts only.

The estimated maximum number of personnel onsite during a shift will be:

       Processing plant: 20
       Mining: 25:
       Admin: 10

This gives a maximum number of approximately 55 personnel onsite during any shift.

Toilets will be provided at the office and the laydown yard/stores area. Septic tank sewerage
systems will be installed to handle this waste. Potable water may be sourced from the water bores
or brought in as bottled water from Crixas. There will not be any shower or change room facilities
provided onsite.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
10. SUMMARY OF OPERATIONAL ENVIRONMENTAL
  CONTROLS
             10.1.1.       HYDROCARBONS
Waste oils, greases, oily rags, filters, solvents and other hazardous hydrocarbon material will be
collected and stored in an appropriately bunded area, where required. These wastes will be
transported and disposed of offsite.

Diesel fuel will also be stored in an appropriately bunded area in the laydown yard. Refuelling will
only take place in the approved area and a concrete pad will be laid to reduce ground contamination
through spillage. Servicing of vehicles will be confined to the workshop area.

             10.1.2.       NON-HYDROCARBON WASTE
Non-hazardous waste material and rubbish will be stored in skip bins and removed regularly for off-
site disposal.

             10.1.3.       SOIL AND GROUND DISTURBANCE
Ground disturbance due to mining activities will be kept to a minimum. Where possible vegetation
will be maintained on slopes reduce the risk of erosion and slope slippage.

Mine vehicles will keep to dedicated tracks and mining areas.

Waste dump slopes will be constructed in such a way as to minimise the risk of erosion and
excessive migration of soil material into watercourses.

             10.1.4.       WATER
Process water will be sourced from the raw water reservoir next to the offices. The level of this dam
will be monitored and bores will be used to maintain an appropriate amount of water during the dry
season. A study will be undertaken on the dam wall at the bottom of the water course holding this
reservoir to determine the works needed to eliminate or rehabilitate water flow from this area off
the tenement.

Where possible, drainage routes from the mining and processing areas will be designed so that any
possibly contaminated surface water flow will report to this reservoir.

Mine water will also report to the reservoir.

Waste water from the processing plant will be recycled back to the Process Water Dams or sent to
the tailings dam.

All tailings and associated pipelines will be bunded to ensure that any discharge can be captured and
not released to the environment.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
Diversion drains will be constructed around any tailings facilities, the processing plant and any areas
with hydrocarbon storage to reduce surface flow through possibly contaminated areas.

Drainage around the processing plant will be designed to drain back into the process water dams to
quarantine this area from the rest of the site water.

Appropriate culverts and drains will be constructed where mine roads pass over surface water flows.

Flow sensors will be fitted to the TSF and waste water pipelines to allow detection of loss of
contents.

Sewerage will be stored in appropriately constructed and sealed septic tanks. Toilets will only be
located at the offices and workshop areas.

             10.1.5.       DUST
Water for dust suppression will be applied by the water cart to unsealed working roads and surfaces
at rates appropriate to the activities being conducted and climatic conditions.
Dust suppression on the crusher will be carried out as required to an appropriate industry standard.

             10.1.6.       NOISE
Machines and equipment used for the proposed activities will be fitted with appropriate mufflers
and regularly serviced to reduce onsite noise levels.
Crushing activities will generally be conducted during daylight hours.

             10.1.7.       MINED HISTORICAL TAILINGS STORAGE
Historical tailings will be trucked to an area of the ROM with appropriate bunding in place to
eliminate contaminated runoff and minimise water flow through the area. Any water draining from
the trucks will be captured by the site drainage and report to the raw water reservoir. The tailings
will be removed from the ROM and processed as quickly as possible to minimise the risk of mercury
contamination and dust generation.

             10.1.8.       SENSITIVE PROCESSING REAGENTS TRANSPORT AND STORAGE
Sensitive reagents such as cyanide will be transported by road to site by an approved and licenced
freight contractor in certified containers. Storage on-site will be in certified and approved containers
specifically designed for that purpose. Storage will be within secure bunded areas within the fully
enclosed drainage area of the processing plant.

             10.1.9.       WASHDOWN BAY
A vehicle washing bay will be constructed at the laydown area. Water will be supplied through a high
pressure pump from a tank supplied by the raw water reservoir. The washdown area will be
constructed so as to fully capture waste water. An oil-water separator will process the waste water
which will be returned to the tank or raw water reservoir.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880
             10.1.10. WORKSHOP
A workshop for servicing diesel equipment and light vehicles will be installed at Premier. The
workshop will have a concrete floor draining to a fully encapsulated sump. All maintenance and
servicing will be carried out in this area excepting emergency repairs required to enable equipment
to move from a breakdown location to the workshop.




                       1/387 Hay Street Subiaco Correspondence to: PO Box 2089 Subiaco WA 6904
   Telephone +61 8 9381 3391 Fax +61 8 9382 1186 Email info@clevelandmining.com.au Web www.clevelandmining.com.au
                                 Cleveland Mining Company Limited ABN 85 122 711 880

				
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