There are three styles of gold occurrences identified on the Property, including: 1) intrusive- hosted sulfide disseminations and sulfide-quartz stockwork veinlets (such as the Dolphin gold deposit); 2) auriferous sulfide-quartz veins; and 3) shear-hosted gold-bearing veinlets. All three types are considered to be part of a large-scale intrusive-related gold system on the Property.

Instrusive-Hosted Sulfide-Quartz Veinlets
Intrusive-hosted, auriferous sulfide disseminations and auriferous sulfide-quartz veinlets (0.1-5 mm) within the Dolphin stock are spatially associated with the highest gold grades within the Dolphin gold deposit. Gold also occurs with disseminated euhedral arsenopyrite (1 to 5 mm) which appear to be an earlier, higher temperature mineralization event (McCoy and Olson, 1997). Gold mineralization within the deposit also occurs as mineralized fault gouge enriched with sulfides, sulfide-rich veins, and locally as narrow sulfide-quartz veins <6 inches thick; however, these comprise a relatively small portion of the total gold resource.

Gold within the Dolphin gold deposit occurs largely as inclusions in sulfides, and locally as visible grains, within the sulfide-quartz veinlets. Pyrite and arsenopyrite is the most common sulfide mineral, although stibnite, lead- antimony sulfosalt minerals, tetrahedrite, scheelite, galena and sphalerite occur locally. McCoy and Olson (1997) identified two distinct varieties of arsenopyrite in the Dolphin gold deposit based on arsenopyrite geothermometry and age relations. McCoy also noted that older “hotter” arsenopyrites were finer-grained compared to younger “cooler” arsenopyrites, which were generally coarse and bladey. Furthermore, the high-temperature arsenopyrite contains particulate inclusions of gold, whereas the low-temperature arsenopyrite contains maldonite (a gold-bismuth mineral). Although stibnite and antimony sulfosalts are not uncommon in the deposit, geochemical studies suggest that high antimony values are generally associated with very low gold values. Evidence suggests that the fluids evolved towards increasing base metals and antimony with time. For example, chalcopyrite embayments in pyrite were noted in thin section, and massive sulfide veins (jamesonite, galena, stibnite and/or sphalerite) cutting arsenopyrite-quartz veins are noted in several drill logs. In addition to sulfides, some portions of the Dolphin gold deposit contain abundant scheelite.

Auriferous Quartz Veins
High grade auriferous quartz veins (2 cm to 3 m), hosted in metamorphic rocks, occur at numerous locations, and were the source of all previous gold production from the Property. A discussion of each occurrence is beyond the scope of this report; the general mineralogy, morphology and structural setting is summarized below. Detailed information for individual vein prospects on the Property can be obtained from previous reports (Freeman, 1992).

The auriferous quartz veins typically crosscut the host rock primary foliation at very high angles. A large number of these veins dip south, although some veins dip north. Vein thickness is quite variable, and can range from a few inches to several feet over short distances along both strike and dip. Pinch-and-swell features, bifurcations and splays are characteristic.

Auriferous quartz veins on the Property consist of hydrothermal quartz with minor to trace amounts of sulfides. The veins are opaque to milky white quartz and locally gray to mottled gray and white. Bands or laminations parallel to the vein walls are not uncommon, and vein centers often contain vuggy or comby quartz crystals. Silicified vein breccia is also common, and may comprise the entire vein or be restricted to bands within the banding sequence (Adams and Giroux, 2012). This suggests there were most likely multiple, possibly alternating episodes of silicification and deformation. Auriferous quartz veins seldom contain more than 5% total sulfides and average 1- 3%. The most common sulfide is arsenopyrite, although other sulfides are locally present, including pyrite, stibnite, jamesonite, tetrahedrite, galena and sphalerite. Scheelite is present in a few specific veins (notably abundant in the Cleary Hill and Wyoming vein). Visible gold typically occurs as coarse flakes, filigree, or wires suspended in quartz or mingled with sparse, scattered sulfides. Locally the auriferous quartz veins may be accompanied by parallel stringers and pods of later massive stibnite. This massive stibnite occurs locally as <10 inch (<0.25 m) thick seams or pods parallel or adjacent to auriferous quartz veins, and also as veins up to 4 feet (1.3 m) thick along steep cross-faults which offset the auriferous quartz veins. This stibnit mineralization is thought to be formed as the last metal-bearing event at lower temperatures.

Shear-Hosted Veinlet Zones
Shear-hosted auriferous veinlet zones on the Golden Summit Property are found within some of the same shear zones which host major auriferous quartz veins and, as mentioned above, are likely parts of the same mineralization event. The key characteristic of these zones is that they may contain sufficient polyphase veinlet density and gold grade to justify bulk-mining methods. Several of these zones have been explored since about 1969, including the Too Much Gold prospect, the Circle Trail and Saddle prospects, and the Curry Zone.

The shear-hosted veinlets consist largely of quartz with variable amounts of sulfides, although locally the veinlets may consist largely of sulfides with lessor amounts of quartz. Sulfide- quartz veins within the shear-hosted zones generally are less than a few centimeters in thickness. Locally these veins form vein sets with spacing of a few feet, resembling a sheeted vein system (vein swarm). The veins are discontinuous along strike and dip, and often grade into broken veins, vein breccia, or zones of sugary, granulated crush quartz material. Higher quartz vein and veinlet density is generally indicative of higher gold values.

The shear-hosted veinlet zones are characterized by pervasive sericite and clay alteration, as well as localized silicification and carbonate alteration. In addition, the zones are typically highly oxidized near the surface, and contain locally intense iron, arsenic or antimony oxides. The majority of the veinlets within the zones are sub-parallel to the strike and dip of the zone.

Due to the pit containing both sulfide and oxide material, there will be two methods of processing. Two sets of cut-off values were calculated; breakeven cut-off and the internal cut-off were calculated using $1,300/oz Au price for both the oxide material and the sulfide material. The oxide mine plan used a breakeven cut-off grade of 0.182 g/t Au, and an internal cut-off grade of 0.132 g/t Au. The sulfide mine plan used a breakeven cut-off grade of 0.611 g/t Au, and an internal cut-off grade of 0.566 g/t Au. The oxide will be processed via heap leach, while the sulfide will be processed through a plant. The mine has been scheduled to provide up to 3.5 million tonnes per year (Mtpy) of each material type. Oxide is mined in the early years, as it forms a cap over the sulfide material. Years in the middle of the production schedule have an overlap of oxide and sulfide production prior to completion of oxide mining.

Oxide material will be mined and processed exclusively for the first eight years of the mine production. A small amount of sulfide material will be mined before year eight; this sulfide material (approximately 800,000 tonnes) will be stockpiled until the end of mine life. In year nine, the sulfide material comes online for production. Mining of the oxide material will continue through year 14 of the 24-year mine life. Mining of sulfide material will continue from year nine through the end of the 24 -year mine life.

During production, both oxide and sulfide material will be transported from the pit to the primary crusher located near the pit exit. After primary crushing, oxide and sulfide material will be transported by conveyor to its respective process area. The oxide will be leach processed in an area to the southeast of the pit, while the sulfide will be processed northwest of the pit.

Waste will be hauled by truck to the Mine Rock Storage Facility (MRSF). The MRSF has been designed to permanently contain the overburden and waste material associated with the pit. The current MRSF design, located to the northeast of the pits, is built around the hill. The MRSF was designed with a buffer around the nearby creeks. The total MRSF design will contain 100% of the expected waste material planned to be generated - approximately 239 million tonnes of swelled material.

The mine has been planned using diesel blasthole drills, large haul trucks and rope shovels. Primary mine production is achieved using 64 Mt payload rope shovels along with 227 Mt payload haul trucks. The drills, shovels and haul trucks selected for the Project are scheduled to operate around the clock and require four crews on 12-hour shifts for complete shift coverage.

Pit slope configurations used in designing the pit were based on the geologic information provided in the drill logs and physical inspection of the material during the site visit. Since no geotechnical pit slope analysis study has been conducted, a generic pit slope design consisting of 45° overall inter-ramp slope angles with 63° bench face angles were designed, using 10 m benches.

Pit designs were based on 10 m single benches for the rock units. This corresponds with the resource model block heights (10 m).

Haul-roads, in general, are designed to be inside of the pit where only one safety berm is required. Haul roads inside and outside of the pit have been designed at an average of 27 meters. This provides approximately 3.5 times the width of the planned trucks.

Ramps were designed to have a maximum centerline gradient of 10%. Switchbacks are designed with flat turnarounds. Once the switchback is complete, the ramp continues at 10%.

The ultimate pit design uses switchbacks to maintain the road and ramp for the entrance of the pit. This allows for better traffic flow between pit phases. The haul roads provide access to the Primary Crusher. The haul roads also provide access to the MRSF for placement of overburden and waste rock material.

The crest of the ultimate pit is at an elevation of about 460 meters above mean sea level (amsl), with a pit bottom of 80 meters amsl.

Gold recovery from the Project deposit would be accomplished in two separate processing operations for oxide and sulfide mineralized materials. Gold from oxide material in Phase 1 production would be recovered by crushing run- of-mine (RoM) material prior to loading onto a heap leach pad. The crushed oxide material would then be leached with a sodium cyanide solution to recover the soluble gold. Gold from the pregnant leachate solution would then be recovered onto activated carbon and further refined in an elution/electrowinning (EW) circuit. The product from the EW cells would be further refined into gold doré. For the purpose of this report, an oxide gold recovery of 80% was used in all calculations based on the available metallurgical testwork.

Gold from the sulfide materials would be recovered by crushing and grinding the material prior to biooxidation of the sulfide minerals. The oxidized slurry would be sent to a carbon- in-leach (CIL) circuit for cyanide leaching and recovery onto activated carbon. Gold would be loaded onto the activated carbon and then recovered in the same elution circuit as the oxide material to produce gold doré. For the purpose of this report, a sulfide gold recovery of 90% was used in the calculations.

Once the tradeoff study concluded that the aforementioned processing options examined in the metallurgical test program were economically advantageous for the processing of the sulfide material, it was determined that bio-oxidation of sulfides would be a possible alternative processing method. While no metallurgical bio-oxidation testwork has been performed on the deposit, the success of other oxidation methods would indicate that bio- oxidation of the sulfide material is feasible. Additionally, benchmarking of bio-oxidation plants around the world indicated that the Project would be similar in size and cost to existing operating projects.

Processing of mineralized materials at the facility would consist of two separate phases, termed Phase 1 for oxide materials and Phase 2 for sulfide materials. The Phase 1 production would process oxide materials at nominal rate of 10,000 tpd by heap leaching. The Phase 2 production would provide biooxidation and leaching of sulfide materials in a nominal 10,000 tpd processing facility, starting in production year nine of the mine life. Heap leaching of oxide materials would continue throughout Phase 2 until the end of the mine life.

Crushed oxide material would be received from the gyratory crusher located at the mine and conveyed to secondary and tertiary crushing circuit to reduce the size to a nominal minus one-inch product. The crushed material would be placed on a nominal 10,000 tpd lined heap leach pad via conveyors. After the material is prepared for leaching, barren leach solution containing sodium cyanide would be applied to the heap leach surface using buried drip irrigation lines. Pregnant leach solution would percolate through the heap and would be collected in the drainage overliner and gravity flow into pregnant solution pond. Pregnant solution would be pumped from the pregnant solution pond to carbon adsorption columns (CIC). Additional sodium cyanide would then be added to the barren leach solution to maintain reagent concentrations and pumped back to the heap leach. Heap leaching of fresh oxide material would occur seasonally with new oxide material being added to the pad as weather allows. During the cold weather months, leach solution would be recirculated within the pad, but no fresh leaching would occur. The designed primary leach cycle is 90 days with secondary leaching occurring on subsequent lifts.

Loaded carbon from the CIC would be transported to the elution circuit where it would be acid washed prior to stripping. After acid washing, the carbon would be neutralized with caustic and transferred to a stripping vessel. Carbon stripping would use a pressurized Zadra method to desorb the gold from the carbon. Stripped carbon would be transferred to a rotary kiln for thermal reactivation prior to being returned to CIC.

Effluent solution from the stripping vessel would be circulated through EW cells to precipitate gold into a concentrated sludge. Solution from the discharge of the EW cells would be recirculated back to the elution circuit. Gold-bearing sludge from the EW cells would be periodically collected for smelting into gold doré.

Phase 2 would use the existing primary crushing circuit from Phase 1 to provide primary crushed sulfide mineralized material to a crushed coarse material stockpile at the process plant site. Crushed sulfide material would be reclaimed by apron feeders and conveyed to the primary grinding circuit.

Ground material from the cyclone overflow would then be sent to a flotation circuit to recover goldbearing sulfide mineralization. Flotation concentrate would then be pumped to bio- oxidation tanks for sulfide oxidation. The oxidized residue would be pumped to acid neutralization circuit to increase the pH of the slurry to acceptable levels for cyanide leaching. Sodium cyanide would then be added to the neutralized slurry and be sent to Carbon- in-Leach (CIL) tanks to recover the gold onto activated carbon. Tailings from the CIL circuit would then be treated for cyanide detoxification and sent to a tailings storage facility. Loaded carbon from the CIL circuit would be transported to the shared elution circuit of the oxide circuit from Phase 1 where the gold would be stripped from the carbon, recovered by EW cells, and smelted into gold doré.

The oxide Adsorption Desorption Recovery (ADR) plant. The following supporting infrastructure for the Oxide process facility includes:

• Three stage crushing and conveying circuit
• Heap leach pad and solution storage
• Carbon adsorption columns
• Carbon stripping circuit
• Carbon reactivation kiln
• Electrowinning cells
• Gold smelting furnace
• Reagent handling
• Maintenance/Warehouse
• ADR Building and Operations Office.

The sulfide processing facility includes:

• Primary crushing circuit
• Primary and secondary grinding circuits
• Sulfide flotation
• Bio-oxidation tanks and wash thickener
• CIL leaching circuit
• Tailings thickener
• Tailing storage facility
• Reagent handling
• Carbon stripping circuit (shared with oxide process)
• Carbon reactivation kiln (shared with oxide process)
• Electrowinning cells (shared with oxide process) • Gold smelting furnace (shared with oxide process)
• Assay and metallurgical laboratory Carbon adsorption columns.