Regional Geology
The Taylor Mine Complex is located along the Porcupine-Destor Fault Zone (PDF), a major structural feature associated with globally significant gold deposits lying within the Abitibi Greenstone Belt of northeastern Ontario and north-western Quebec.

Local and Property Geology
The Taylor Mine Complex is almost entirely covered by glacial overburden, ranging from 3 m to 60 m in thickness (generally 30 m to 40 m thick). Thus, interpretations of the property geology have been made principally from diamond drill hole information as well as the underground excavations in the shaft and ramp areas developed in the Shaft Deposit.

The Taylor Mine Complex is located along the PDF in its central portion, approximately 60 km east of the main gold producers in the vicinity of Timmins. The PDF in the area of the Taylor Mine Complex strikes roughly east-west, and dips to the south between 40° and 60°, with the majority of the property lying to the south of the projected trace of the PDF. The PDF is a complex structural zone and it is more accurately described as a zone of tens of metres width, along which are contained many individual zones of movement. In the Taylor property area, the footwall of the PDF is considered to be a thick series of relatively undeformed and unaltered metasedimentary rocks intersected to the footwall.

Mineralization
The Taylor Mineralization is in close proximity, within the hanging wall, to the PDF. Over a strike length of 2.3 kilometres there are three mineralization zones that have been identified. From east to west these are:

- The Shaft Deposit, with gold mineralization associated with felsic intrusive rocks.
- The West Porphyry Deposit (WPZ), a system of stacked lenses, with the gold mineralization associated with felsic intrusive and altered mafic-ultramafic rocks (Green Quartz Carbonate).
- The Shoot Deposit, with gold mineralization hosted by argillaceous metasedimentary rocks within a package of green quartz carbonate.

Gold commonly occurs as relatively coarse-sized free gold in quartz, but also occurs as fine particles, which may be intimately associated with sulphides (particularly pyrite and locally, arsenopyrite) both in quartz-carbonate veins or in surrounding altered host rocks. More detailed descriptions of the mineralized zones are given in the following sections.

DEPOSIT TYPE
Numerous gold deposits occur in the vicinity of the PDF and related structures such as the Pipestone Fault. These include the major mines of the Timmins camp (Dome, Hollinger, McIntyre, and Pamour). A number of gold deposits have been discovered in more recent years, including the Holt-McDermott Mine, Holloway Mine, Owl Creek Mine, Bell Creek Mine, Hoyle Pond Mine, Aquarius Mine, Maude Lake Deposit, Glimmer (Black Fox) Mine, Stroud Deposit, Fenn-Gib Deposit, Ludgate Deposit, Jonpol Mine and a number of other prospects.

Some of the PDF gold deposits extend from surface to over 1,000 m below surface, and some are blind deposits, in that they do not reach bedrock surface. The top of the Holloway deposit (i.e. the Lightning Zone), for example, is over 240 m below surface.

The following description of potential gold deposit types on the Kirkland Lake North area claims is from Reid (2003). Deposit types and exploration models can generally be characterized as one of three main types, although they tend to merge with each other at times. The deposit types may have more to do with the different host rocks than a genetic difference. Proximity to the main break(s), associated splays, presence of hydrothermal alteration, Timiskaming sediments or high level porphyries are common to all. The three main types are as follows:

- Green Carbonate Hosted: Nighthawk Lake, Aquarius, Stock, West Porphyry, and Black Fox all fall into this classification. Gold is generally present as free gold in quartz veins or with disseminated sulphides associated with small intrusive rocks or albitic alteration in completely carbonate altered ultramafic flows. Carbonate alteration is up to 200 m wide and can be traced for thousands of metres discontinuously on strike. The gold is often in cross cutting or conformable features. Timiskaming conglomerates are often proximal or part of the package.

- Felsic Intrusive Related: Ronnoco, Pominex, parts of the Taylor Shaft and Hislop are examples of this type. The intrusive rocks vary from feldspar (plus or minus quartz) porphyry in the west to more syenitic in the east. Mineralization is characterized by both cross cutting to stockwork quartz veins, disseminated sulphides and/or contact skarns or hornfels, depending on host rock. Carbonate alteration is still quite common in the host rocks with silica, sericite, and hematite more within the intrusive.

- Mafic Volcanic Hosted: Holloway, Holt and Hoyle Pond are examples. Ubiquitous carbonate alteration with iron carbonate, albite, silicification and sericite more proximal to ore. Quartz veins and/or albitized variolitic mafic flows are often central to the zone and often found near the mafic/ultramafic contact.

The deposit types vary within the Taylor Mine Complex. The Shaft Deposit furthest east is identified as a Felsic intrusive related model, with a contemporaneous green carbonate association. Feldspar porphyritic intrusions are the host to high grade gold veins and high concentrations of disseminated sulphides (generally pyrite).

Within the West Porphyry Deposit, free gold is found within quartz dominant extension veins and veinlets, cross-cutting the foliation present within the chrome-mica and chloritic altered ultramafic rock. This unit can be up to 20 m thick as the true extent of the veins are not fully understood. Additionally, the main shear (interpreted to be the contact of the PDF between the mafic and sediment contact, is host to a quartz brecciated shear vein, which can be up to 2m thick. Altered mafic units consisting of high concentrations of disseminated sulphides are also host to gold mineralization.

Similar to the West Porphyry Deposit, gold mineralization in the Shoot Deposit is associated with the quartz carbonate veins within argillaceous sediments bounded by green carbonate.

The Taylor Mine consists of a few zones: the Shoot Deposit (located on the west side of the property), the West Porphyry Deposit (WPZ), the East Porphyry Deposit and the Shaft Deposit (located on the east side of the property).

The WPZ extend vertically about 600 m and is mostly open at depth. The WPZ is accessed via a ramp and mined by overhand cut and fill method (for shallow dip ore zones) or longhole stoping (where the ore zones dip at an angle greater than 45°). Ore and waste are trucked to surface where the ore is loaded into surface trucks for haulage to the Holt mill and the waste is stockpiled on designated surface areas.

Overhand Cut and Fill (OC&F) and Drift and Fill (D&F) were selected as the most suitable mining methods:
- Where the ore is dipping at less than 45° and the ore horizontal width is narrower than 10 m, OC&F is the method of choice;
- Where the ore is dipping at less than 45° and the ore horizontal width exceeds 10 m, D&F will be the method of choice.

Where the ore is dipping at more than 45°, longhole mining will be the method of choice, requiring minimum mining width of 3 m. Waste rock generated by development activities is the source of backfill (whether cemented or not).

Upon examination of the mining shapes, the geologist applied a dilution factor varying from approximately 10% to 50% and a dilution grade ranging from approximately 0.5 g/t to 1.0 g/t. Mining extraction varied from approximately 90% to 95%, based on the mining method.

An average mining rate of approximately 600 tpd was selected.

The Holt Mill was constructed in 1988 and was originally designed for a throughput of 1,360 tpd. Expansions in 1988 and 2001 increased the throughput to 2,500 tpd and 3,000 tpd, respectively.

Surface ore storage is a total of 4,900 t in three silos, the Holt headframe bin (900 t) and two other separate storage bins (1,000 t and 3,000 t).

The grinding circuit consists of a 5 m diameter by 6.1 m long Allis Chalmers ball mill, converted to a SAG mill, a 4 m diameter by 5.5 m long Allis Chalmers ball mill and a 3.6 m diameter by 4.9 m long tertiary ball mill, all operating in series and in closed circuit. The grinding circuit is controlled by an expert system and fuzzy logic.

The primary cyclone cluster consists of six 381 mm (15”) Krebs D15B cyclones. A secondary cyclone cluster consists of twelve 254 mm (10”) Krebs gMAX cyclones with an Outokumpu PSI-200 online analyzer. The secondary cyclone cluster feeds a 27 m (90 ft) Eimco thickener. The thickener un ........