Regional Geology
The Holloway and Holt mines lie within the Southern Abitibi Greenstone Belt (SAGB) of the Superior Province in north-eastern Ontario. The 40 km long, mostly contiguous HoltHolloway property package is a grouping of strategically located claims straddling the Porcupine-Destor Fault Zone (“PDF”) midway along its 260 km length.

Local Geology
The deformation history of the area is defined by five events. The earliest episode of regional D1 deformation (compression and extension) predated the Porcupine angular unconformity at 2,690 Ma. The D2 event (compression and extension) post-dated the Porcupine assemblage and resulted in localized folding and thrusting and early southside up, dip-slip, ductile deformation on regional deformation zones. Broadly synchronous with the syntectonic opening of the Timiskaming basins in dilatational jogs was D3 folding that resulted in significant left lateral slip movement along the PDF. The D4 folding event created synclines within the Timiskaming assemblage rocks and rightlateral strike-slip displacement along the PDF. The D4-D5 event represents the final stage of transpressional deformation along the PDF. Gold mineralization in the HoltHolloway area is interpreted to be early D3 in age. Lightning Zone replacement mineralization is cut by an inter-mineral dike with an age of 2672 ± 1.9Ma, which is overprinted by a later auriferous quartz-carbonate veining event. The bulk of the gold in the Timmins area was related to late D3 events.

Holloway Property Geology
The Holloway deposit is hosted by the 30 m to 150 m wide Holloway unit, a south dipping band of Fe-tholeiitic mafic volcanic rocks that is bounded to the south and north by south facing turbiditic sedimentary rocks and komatiitic ultramafic volcanic rocks, respectively. Mineralization occurs where a 200 m to 300 m wide corridor of east-northeast trending D2-D3 high strain zones obliquely crosses the Holloway unit, resulting in a deflection in its strike to east-northeast trends, from east to westnorthwest trends that are more typical at the property scale.

DEPOSIT TYPE At Holt-Holloway, the deposit is a mafic volcanic hosted where the gold mineralization is quite unlike the classical Superior province auriferous quartz vein systems resulting from deformed, extensional fracture arrays. Rather, it is associated with disseminated sulphides in altered rock, sometimes described as replacement mineralization. Mineralization typically consists of moderately to steeply dipping tabular zones of disseminated pyrite (generally less than 5 per cent per volume) and gold in intensely altered tholeiitic basalt, with variably developed microveinlet stockworks. The ore is gold rich (Au:Ag is greater than 5) and contains concentrations of arsenic. The mineralized zones occur in a variety of geological settings reflecting a variety of controls on the localization of the mineralization: along low-strain lithological contacts (Lightning, Blacktop and Lightning Deep zones at Holloway), along brittle and/or ductile faults (McDermott, Worvest and Mattawasaga zones), and as shallowly dipping discordant zones (Tousignant, South Zone and Zone 4) of which the South Zone (Holt) is spatially coincident with an array of shallowly dipping syenitic dykes.

Mineralized zones are coincident with zones of intense albite-ankerite alteration of the host basalt, which, in turn, are partly fringed by sericite alteration haloes at Holloway and fringed by broader zones of calcite alteration. Disseminated specular hematite can be present within or outboard of mineralized zones.

Gold mineralization at the Holt and Holloway Mines is associated with replacement carbonate-pyrite-albite-quartz alteration that overprints mafic volcanic rocks in, and adjacent to, D3-D4 high strain zones. The overprinting of multiple mineralization phases in the same area suggests that mineralization was long lived and spanned syn-tectonic deformation during exploitation of the same fluid channel ways.

Holloway
The Holloway deposit is hosted by the 30 m to 150 m wide Holloway unit, a south dipping band of Fe-tholeiitic mafic volcanic rocks which is bounded to the north and south by south facing turbiditic sedimentary rocks and komatiitic ultramafic volcanic rocks, respectively. Mineralization occurs where a 200 m to 300 m wide corridor of east-northeast trending D2-D3 high strain zones obliquely crosses the Holloway unit, resulting in a deflection in its strike to east-northeast trends from east to westnorthwest trends that are more typical at the property scale (Rhys, 2005a). Mineralization in the Holloway Mine comprises the Lightning, Middle, and Blacktop zones.

Lightning Zone
The Lightning Zone is host to by far the largest zone at the Holloway Mine. It comprises a series of generally interconnected lenses of pyritic replacement mineralization localized at and near the northern portions of the Holloway Unit, frequently within variolitic units. Two stages of alteration are evident: pre-mineralization albite-hematite-quartz and syn-mineralization pyrite-quartz-albite-carbonate-sericite. Gold mineralization occurs as native grains associated with fine-grained clustered pyrite occurring as stringers and veinlets, irregular clumps, and dense vein haloes. Quartz veins are generally not mineralized. “Typical” ore contains on average 10 % to 55% clustered pyrite. Gold most often occurs along the pyrite grain boundaries or, less often, along fractures in pyrite grains. Accessory arsenopyrite, chalcopyrite, sphalerite, and scheelite are very minor constituents overall. Gold grain sizes average 5 µm to 9 µm and visible gold is rare.

Middle Zone
Middle Zone In addition to the quartz vein related mineralization associated with the flat faults, a series of north-trending, moderate to steep east-dipping quartz-tourmaline shear veins occurs in the Middle Zone, west of the main Lightning Zone mineralized body. The veins are developed in narrow reverse shear zones and are probably intermediate in age between the Lighting Zone and flat fault related quartz veining episodes. These veins are quartz dominated and contain variable quantities of black tourmaline as ribbons and stylolites. They have auriferous pyritic envelopes and outer sericitecarbonate alteration. The veins are cut by the shallow quartz extension veins associated with the flat faults, and their local development in areas of the Lightning Zone style disseminated mineralization suggests that they overprint it, forming an intermediate mineralizing phase. The veins are affected by open and ptygmatic F3/F4 folds, and by F5 folds, consistent with the earlier timing than the less strained quartz extension veins that cut them. At their northern end at least, the quartz-tourmaline veins penetrate into Lightning Zone style replacement mineralization and split up or dissipate as they enter it.

Blacktop Zone
Located 2.4 km due east of the Holloway shaft, the Blacktop Zone is developed in an east-northeast trending high strain zone, or network of high strain zones, associated with intense S3-S4 development and sericite-carbonate-chlorite alteration of mafic volcanic rocks. As is the case at the Lightning Zone, the area of high strain at Blacktop is associated with an east-northeast trending deflection in the otherwise dominantly east-west to west-northwest trend of lithologies. The Blacktop Zone is a tabular (typically two metres to seven metres thick) and shallow southerly dipping zone which is hosted by and cuts obliquely across the Holloway Unit. The zone may be at least 100 m in strike length. The mineralization coincides with an apparent 20 m to 80 m top to the north (reverse) displacement of the northern contact of the Holloway Unit with ultramafic volcanic rocks, and of subunits internal to the Holloway Unit.

Design Criteria
Mining activities at the Holloway mine are planned to be concentrated in two zones: Smoke Deep, which is located between the Lightning Zone to the west and the Blacktop Zone to the east, and the Lightning/Middle Zone which is the main portion of the mine developed by previous owners.

Smoke Deep
The Smoke Deep Zone extends vertically from 765 m to 865 m and is mostly open at depth and to the east. The zone is accessed via a 1.4 km long ramp from the 730 level at the Lightning Zone. The zone consists of steeply dipping ore and is amenable to long hole stoping mining method.

Ore is transported in the zone via an internal ore pass reporting to a chute on the 845 level. Ore is then transferred by 26 and 30 tonne trucks to the main ore pass on the 730 level in the Lightning Zone. In areas mined below the 845 level, the ore will need to be trucked up to the 845 level and then on to the 730 ore pass. Hauling of waste to the 730 level at the Lightning Zone is minimized by scheduling stopes so that waste can be used as backfill. Smoke Deep is serviced by a single vent raise. It extends from the 845 level to the 505 Blacktop access drift. Fresh air is forced down the main access ramp and up the internal Smoke Deep ramp system. Auxiliary fans feed individual levels from the ramp and the air is exhausted to the 505 level via the internal ventilation raise. Exhaust air splits on the 505 level with approximately half returning to the Lightning Zone and half travelling to the Blacktop return air raise.

Smoke Deep stopes access consists of a singular level access bisecting the ore sill. Stopes are mined longitudinally in a retreat fashion. Sublevels are spaced approximately 20 m apart vertically.

Lightning/Middle Zone
The Lightning/Middle Zone extends from the 820 m level to the 150 m level and together they make up the main portion of the Holloway Mine. Remnant pillars make up the bulk of the 2013 production from the Lightning Zone, while the Middle Zone is a mixture of remnant pillar mining located between the 400 m and 650 m levels and new stoping areas on the 780 m level.

Mining activities in the Lightning/Middle Zones will benefit from existing infrastructure developed during previous mining activities. Access is via an existing ramp, which extends from the 870 m level to the 260 m level. Ore transport will be accomplished via the existing ore pass system using LHDs, with the exception of planned mining below the 730 m level, which will require the ore to be hauled to the 730 m level ore pass using 26 t and 30 t trucks.

Mining Method
The primary mining method at the Holloway Mine is open stoping. This has been the historical mining method used at the mine by previous owners. A steeply dipping ore body is amenable to using this method. Drilling will be performed by top hammer drills with hole diameters ranging between 64 mm and 76 mm. Stoping is performed in a longitudinal retreat in order to minimize development costs. Rock is planned for use as backfill during stoping activities. Pillars have been designed to be left within low grade areas. A dilution factor of 15% has been applied to mining shapes at the Holloway Mine and a grade of 0.3 g/t was applied to dilution material. Mining recovery has been set at 90%.

Mine Access and Development
The mine is accessed by a 5.5 m diameter shaft that is 867 m deep and contains two hoisting compartments and a manway. The shaft is circular with concrete rings on a 1.5 m spacing and steel hardware. The main hoist is a 932 kW (1,250 hp) double drum (3.7 m) equipped with a 15 person cage over a ten tonne skip in balance with a second ten tonne skip. The production hoist is a refurbished 1957 Ingersoll Rand hoist. It can be run on automatic setting, with the hoistman controlling the loading pocket operation. The conveyance run on timber guides throughout the shaft at speeds of 7.6 m/s for skipping and 5.1 m/s for personnel travel. The hoisting system has a skipping capacity in excess of 200 tph. There is a smaller 4.9 m diameter shaft from surface to a depth of 441 m. This shaft was sunk for exploration but is now primarily used for ventilation and as an escape way. This shaft is equipped with an Ingersoll Rand 373 kW (500 hp) AC powered, double drum, double clutch hoist.

Ramps
Development from the shaft is for rubber tire equipment (i.e. no track headings). There is no ramp connection to surface, but there are three internal ramp systems that provide access to the mine workings:
- The West Block is serviced by a ramp from the 260 to 520 levels.
- The East Block ramp extends from the 445 East level to the 650 level, ending on the 870 level. A haulage drift on the 505 level connects the East and West blocks.
- The third ramp system services the Smoke Deep Zone and extends from the 865 level to the 765 level. The Smoke Deep Zone is connected to the East Block ramp via a 1.4 km incline from the 845 level to the 730 level.

Smoke Deep Zone
Planned development in the Smoke Deep Zone will be concentrated on completing existing levels above 845 level and establishing ramp connection to 885 level and 905 level to the east of the main mining area.

Lightning/Middle Zone
Planned development in the Lightning/Middle Zone will be concentrated in two areas:
- Establishing a 770 level and 750 level mining front to the west of the previously mined areas on 780 level. This will include the development of a ramp and the widening of existing workings.
- Development headings will also be driven on the 550 level and 650 level where the remainder of the planned development will be needed.

Ore mined at the Holloway Mine will be processed at the Company's Holt Mill which is located 1km away, on the south side of Highway 101 East. Holloway ore has been processed at the Holt Mill since the commencement of Holloway Mine production in 1996.

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). Ore can be delivered to the mill from the Holt Mine by conveyor or from a separate surface dump that enters a 100 tonne hopper, and then can be fed to either of the two storage bins.

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 ........