The Lexington-Grenoble Deposit is a porphyry-hosted, high-sulphidation gold/copper pyritic sheeted stockwork. There is a strong affinity to a porphyry copper hydrothermal system by virtue of its fluid composition and alteration but strongly influenced by structure.

The geological setting of the Lexington Property is dominated by a major 600 m wide tectonic shear zone, the No. 7 Fault. The Lexington-Grenoble Deposit is focused above or at the Lower Serpentinite/Dacite contact (a subthrust of the No. 7 Fault) and is composed of massive pyritelesser chalcopyrite (and rarely magnetite) veins, veinlets and disseminations. The series of shallow to moderately dipping en echelon overlapping sheeted massive sulfide zones, stringers and disseminations are hosted within the basal 25 m of a dacitic pyroclastic unit to the “Dacite” unit, confined to an area 525 m along its long axis, 20-60 m wide normal to the long axis and 25 m thick vertically.

Surface infrastructure will be established near the existing portal, equipped with mine office, dry, shop, generator, compressors, sanitary and environmental control systems. Access to the mine will be via the existing three surface portals, drifts and ramp.

The proposed mining method is jackleg/stoper pilot raise and slash. The overall mine sequence will generally be mined from the top down. Initially a 2.4 m by 2.4 m pilot raise will be driven, in ore, from the lower sublevel transport drift to the upper sublevel overcut drift, at a central location along the stope strike. A three-drum slusher cut-out will be excavated at the base of the pilot raise in the operator accessway.

Open stope jackleg/stopper slashing will start at the base of the pilot raise, slashing outward along strike to the stope pillar locations on either side of the stope, and upward along the dip of the deposit body to the overcut drift. Drill steel will be 29 mm diameter and up to 2.4 m in length. The powder factor is estimated to be 0.50 kg per tonne. Open stope slashing will proceed outwards and upwards from the pilot raise. Access to the stope face will be via the sublevel overcut drift and pilot raise. A nipping slide and stope access ladders will be installed in the pilot raise. Blasted mineralization will be slushed down to the sublevel transport drift where it will be picked up by 2.5 and/or 3.5 cubic yard load/haul/dump/machines. These machines will not be able to access b ........

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Mineral processing of the Lexington-Grenoble and Golden Crown mill feed will be performed at the existing Greenwood Mill and concentrator facility, currently on care and maintenance. The facility is accessed to the mines via all-weather gravel roads, 17 km to the Lexington-Grenoble Mine, and 2 km to the Golden Crown. The existing processing facility consists of a concentrating plant and related equipment, including infrastructure and a tailing storage facility (TSF).

The plant incorporates conventional mineral processing to produce a gold gravity concentrate, and a copper - gold flotation concentrate. Crushing is performed using jaw crushing, followed by secondary cone crushing operating in closed circuit with a vibrating screen. The fine material to be processed is directed to a grinding and flotation circuit at a nominal 8.8 tonnes per hour, although the crushing plant is capable of processing double this throughput.