The J&L Property lies at the northern end of the Kootenay Arc which is known for its Irishtype carbonate hosted Zn-Pb, volcanogenic massive sulphide (VMS) and sedimentary exhalative (Sedex) deposits. The two deposits on the J&L Property are the Main Zone and the Yellowjacket Zone.

The Main Zone is a structurally-controlled precious metal and polymetallic base metal sheeted sulphide (Au-Ag-Pb-Zn-As) deposit. The deposit has quite a reliable and predictable geometry. The zone is sheet-like or tabular with an average dip of 55° to the northeast. The zone of sheeted massive and stringer sulphide veining has an average width of 2.5 m but the sheeted sulphide veining can reach 15 m in true thickness.

The Main Zone is composed of closely spaced bands of massive sulphides which frequently coalesce at its widest parts. Individual bands, which are generally tabular, may die out along strike over tens of metres but appear to resume in an adjacent band. Individual massive sulphide bands frequently range from 5 cm to 1 m thick. Sulphide minerals include pyrite, pyrrhotite, gold-bearing arsenopyrite, iron-rich sphalerite (blackjack), galena, tetrahedrite and trace chalcopyrite. There are also traces of silver-lead-antimony and lead-antimony sulphosalts. The banding ranges from predominantly arsenopyrite (high gold), to mixed arsenopyrite and massive sulphides, to massive sphalerite with no arsenic present.

An underground mine plan developed by Micon comprises 1.09 million tonnes of measured resources at an average grade of 6.32 g/t Au, 65.91 g/t Ag, 4.16% Zn, and 2.28% Pb; 1.05 million tonnes of indicated resources at an average grade of 7.10 g/t Au, 66.08 g/t Ag, 3.94% Zn, and 2.04% Pb; and 2.76 million tonnes from inferred mineral resources at an average grade of 6.20 g/t Au, 72.43 g/t Ag, 3.24% Zn, and 2.22% Pb. The mine plan includes provision for mining losses and dilution. The PEA is based on a 1,500 t/d underground bulk mining operation, using ramp access. The main mining method considered is mechanized, longhole stoping with truck haulage and stope backfill using waste rock and process tailings.

The ore is delivered by mine trucks to the plant and fed through a grizzly with 400 mm openings to the ROM feed hopper. The ore is extracted from the feed hopper by an apron feeder and fed to a jaw crusher with an opening of 18-20 mm.

HMS may be used to selectively remove non-sulphide gangue materials by applying an SG of 2.95-3.00. By removing the lower grade material prior to the grinding circuit, the HMS plant allows the mill feed tonnage to be increased without having to increase the grinding or flotation capacity.

The HMS concentrate reporting to the grinding circuit, comprises 60% of the feed to the HMS circuit or 900 t/d of coarse sink.

The lead flotation circuit is a conventional lead-zinc differential flotation circuit. The initial lead flotation tails are cycloned, with the oversize returning to the ball mill and the fines reporting as feed to the lead scavenger circuit.

Lead rougher tailing, lead-scavenger tails, and zinc spill r ........