The Eagle Zone is comprised of sub-parallel extensional quartz veins that are best developed within the granodiorite proximal to both the hanging wall and footwall intrusive-metasediment contacts. Veining is apparently best developed on the hanging wall contact, but this may be more apparent than real as more drilling has taken place on the hanging wall side.

Veins are typically composed of white or grey quartz with subordinate potassium feldspar and strike at an azimuth of 060° to 085°. They typically dip 60° south to vertical, and range in width from 1 mm to more than 10 cm. Contacts are typically sharp. Vein densities range from less than one per metre to more than fifteen per metre, and average three to five per metre. The greatest concentration of veins appears to coincide with both the narrowest constriction as well as the local apex of the intrusion.

Sulphides account for less than five percent of vein material and occur in the center, on the margin, and disseminated throughout the veins. The most common sulphide minerals are pyrrhotite, pyrite, arsenopyrite, chalcopyrite, sphalerite, bismuthinite, molybdenite and galena.

Secondary potassium feldspar is the dominant mineral in alteration envelopes. Sericitecarbonate is generally restricted to narrow vein selvedges, although alteration zones of this type also occur with no obvious relation to veins.

Vein formation can be attributed to contrasts in cohesion and tensile strength between the intrusion and the enclosing metasediments. Embayments and narrow portions of the stock represent stress shadows that constitute favourable areas for rheological failure leading to the formation of extensional quartz veins.

The Eagle Zone is the principal concentration of mineralization within the Property. Within the Eagle Zone, gold occurs in extensional quartz veins that are most abundant on the hanging and footwall contacts of the narrowest portion of the Dublin Gulch granodiorite near its known western limits. Subordinate quantities of gold mineralization occur in quartz veins within the adjacent metasediments. Veins strike at an azimuth of 060° to 85°, sub-parallel to the intrusive contact and are commonly fractured by
repeated movement along the host fractures.

The Eagle Zone is irregular in plan and is approximately 1,600 m long (east-west) and 600 m wide north-south. The Eagle Zone is near-vertical and has been traced for about 500 m below surface. Current drilling indicates that the mineralization is relatively continuous along this length and is open in several directions, including at depth.

Mineralization occurs as elemental gold, both as isolated grains and most commonly in association with arsenopyrite, and less commonly with pyrite and chalcopyrite. The sulfide content in the veins is typically less than 5%; and, is less than 0.5% within the deposit overall, with 1 to 4% carbonate (calcite) present as a buffer, acid generation from the ore and waste rock is not expected to be an issue (Stantec 2011). In descending abundance, the principal sulphides present are pyrrhotite, pyrite, arsenopyrite and chalcopyrite. Minor sphalerite, galena and molybdenite are also present. Scorodite and limonite are common weathering products.

The Eagle Gold project comprises the Eagle and Olive deposits which are planned to be extracted by open pit shovel and truck mining methods.

Pit optimizations were conducted to determine the optimal open pit mine plan. This analysis and subsequent detailed mine design estimated 123 Mt of ore at an average gold head grade of 0.67 g/t. The contained gold is estimated to be 2.7 Moz.

The main haul roads and ramps are designed to have an overall road allowance width of 27 m.

Ramps are designed with a maximum grade of 10% (steened to 12% for final acces to lower portions of the open pits). Ex-pits roads are designed to allow access to roads connecting the various pits to the crusher and waste dumps and are planned to be a maximum of 30 m wide.

The gold recovery process was designed on the basis of leaching approximately 12.5 Mtof ore per year with an average gold head grade 0.67 g/t at an overal gold recovery of 70.8%.

The gold ore processing facilities will include the following unit operations:

Crushing and Ore Handling
- Primary crusher: a vibrating grizzly screen and gyrratory crusher in open circuit, producing a final product P80 of approximately 114 mm;
- Secondary crusher: a vibrating screen and cone crusher operating in open circuit, producing a final product P80 of approximately 22 mm;
- Tertiary crusher: three vibrating screens and three cone crushers operating in reverse closed circuit, producing a final product P80 of approximately 6.5 mm, and;
- Heap placement: crushed material will be conveyed to the heap leach pad (HLP) by oveland conveyor.

Heap Leach Pad
- Crushed ore stacking and spreading by a series of grasshoppers to a radial stacker;
- Ore l ........