Each of the Seabee mine, Santoy mine complex and Porky deposits are host to mesothermal, quartz-vein hosted lode gold deposits developed in major brittle-ductile to ductile shear systems. The gold mineralization delineated at the Seabee Gold Operation exhibits complex geometrical patterns arising from a combination of structural and/or lithological controls.

The Seabee mine gold deposits (2 Vein and 5-1 Shear hosted deposits, including the L62) are hosted in shear structures within the Laonil Lake Intrusive Complex. Gold mineralization occurs within an extensive network of sub-parallel shear structures which crosscut the Laonil Lake Intrusive Complex. Vein mineralogy is dominantly quartz with pyrite, pyrrhotite and chalcopyrite with accessory tourmaline and carbonate. Silicification is the most common alteration type. Gold mainly occurs in the free form as finely disseminated flakes and films replacing pyrite or at sulphide boundaries. The higher grade gold values are often associated with sections rich in sulphides or at vein junctions.

Gold mineralization at the Santoy mine complex gold deposits (Santoy 7, Santoy 8, Santoy 8 East and Santoy Gap) is hosted in “calc-silicate” altered shear structures with diopside-albite +/- titanite-bearing quartz veins, and occurs in gold- sulfide-chlorite-quartz veins in the shear zones, near or in the granodiorite and granite sills. Diopside-albite calcsilicate alteration facies are spatially hosted with ore and are the main host to gold mineralization in the Santoy 8a and Santoy Gap 9A, 9B and 9C zones. Santoy Gap is a mafic volcanic hosted deposit occurring along a major inflexion of the Santoy Shear zone between the Santoy 7 and Santoy 8 deposits.

The brittle-ductile lode gold system that has formed the Porky deposits (Porky Main and Porky West) is hosted along a thick corridor of calc-silicate altered mafic volcanic and arenaceous sedimentary rocks that straddle a major unconformity along the southern margin of the Rae Lake synform. The Porky West deposit is characterized by the same calc-silicate alteration package as the Porky Main deposit, although the unconformity and arenites host most of the auriferous quartz veins at Porky West.

Exploration at the Seabee Gold Operation is guided by applying techniques consistent with the identification of quartz veining characteristic of lode gold systems. Surface exploration, in particular, utilizes airborne magnetic data to identify structural corridors and asymmetrical features, folds and other locales that are known to host gold on the property. This is used in conjunction with regional and detailed outcrop mapping to identify major zones of shearing and alteration, of which calc-silicate variety tends to be the most prospective at the Seabee Gold Operation. Geochemical soil sampling focused on gold and trace element vectors associated with Seabee-style gold mineralization is used as a regional exploration technique, and has been successful in identifying gold mineralization across the property. Once targets have been sufficiently delineated by these methods, diamond drilling at wide spacing is used to test the structural or mineralized systems which would allow for our minimum-threshold deposit size to be identified based on observed local grade.

The major mining methods include each of the following:

- Longhole Mining: Most of the mining is completed by longhole mining. This method is employed in steeply dipping orebodies. Stope strike length is determined based on geotechnical conditions. Cemented backfill or waste rib pillars are used to maximize ore recovery and minimize dilution.

- Avoca Longhole Mining: In areas with parallel vein structures, appropriate access along strike of the ore body allows for avoca mining. Ore is blasted at one end of an open stope while dry waste rock fill is added to the other end to limit the length of the exposed wall in order to control and minimize hanging wall dilution.

- Alimak Mining: In narrow ore zones or zones with significant capital development requirements, alimak mining is employed to minimize development requirements. Alimak mining requires an upper and lower access point between which an alimak raise is excavated. Production activities can be conducted from the alimak raise itself, or from a development drift excavated off the raise.

At the Seabee mine, the ore zones are accessed by a ramp driven to the 1,200 meter level, and the shaft and hoisting facility provides ore and waste transport to surface, with the ore then conveyed to the mill. At the Santoy mine complex, mining efforts are currently focused on the Santoy Gap deposit. Access to the deposit is by a ramp driven to the 400 meter level, and ore and waste are transported to surface and then to the mill along the all-weather road.

The mill process consists of a three stage crushing circuit, a three stage grinding circuit, a gravity circuit, followed by cyanide leaching. The leached gold is collected in a carbon-in-pulp circuit, stripped and collected on stainless steel mesh cathodes by electrowinning. The product from electrowinning is refined into doré bars in a bullion furnace.

Mineralogy is generally well-understood, as mining of material at the Seabee Gold Operation has been conducted for over 25 years. The mill has processed ore from a variety of different zones with an average recovery of approximately 96.7%.