The Willa deposit is a sub-volcanic breccia hosted-type deposit (L01 – BC Mineral Deposit Profiles). This type of deposit represents a transition from porphyry copper to epithermal conditions with a blending of porphyry and epithermal characteristics. The porphyry units have intruded into the volcanic rocks and a pyrite,silica-rich mineralized stockwork breccia and closely-spaced sheeted veins with local massive to disseminated replacement zones have been imprinted on the sequence. The mineralization in these types of deposits is usually polymetallic and in the case of the Willa deposit contains significant gold, copper and silver.

Other deposit types on the Property are small in size compared to the Willa deposit and some may have been superimposed on the known mineralization. The primary focus of the historic exploration and development work on the Willa deposit is based on the sub-volcanic breccia- osted mineralization.Future exploration will continue to focus on this type of deposit.

The Elise Formation (“Elise”) of the Rossland Group, the oldest rocks on the Property, comprises about 75% of a roof pendant within the Nelson Batholith. The rocks range from volcanic siltstone and tuff to coarse breccias and flows. The metavolcanic roof pendant is cut by two felsic porphyritic intrusions. The first intrusion is a quartz latite porphyry ring-dyke and two radial dykes that have a central core of feldspar porphyry and a crosscutting breccia pipe. The second intrusion consists of two sub-parallel igneous bodies consisting of white feldspar porphyry and hornblende feldspar porphyry. A heterolithic breccia intrudes the volcanic and intrusive rocks. Lamprophyre dykes and faults crosscut and sometimes displace the older lithologies.

The significant mineralization at the Willa deposit is gold-copper-silver (MINFILE 082FNW071). Minor molybdenite-bearing quartz veins occur in the quartz latite porphyry.

The gold-copper-silver mineralization is predominantly within the heterolithic breccia unit, although mineralization has been identified in the feldspar porphyry, the quartz latite porphyry and the Elsie volcanic rocks. The mineralization is controlled by extensive silica-rich micro-fractures, faults, shears and breccias, predominantly within the heterolithic breccia unit that formed a zone of weakness for the emplacement of the mineralization.

The predominant minerals are chalcopyrite (CuFeS2), with varying amounts of pyrite (FeS2) and pyrrhotite (Fe1-xS). The sulphides tend to be encapsulated within sheets of silica. Propylitic alteration occurred during mineralization, as did zones of intense silicification and minor pyritization.

The quartz-molybdenite stockwork is weak but extensive in the quartz latite porphyry and volcanic rocks north and west of the heterolithic breccia. Molybdenite occurs within the quartz and along the quartz vein boundaries. Due to the low grade of the molybdenum and the relatively small size, no potentially economic mineralization is known.

The Au-Cu-Ag mineralization does not appear to be bound to any particular lithology; however, most of the mineralization has been observed within the breccia pipe, mostly in the heterolithic breccia but also in the feldspar porphyry. A minor amount of mineralization has been observed crossing over the pipe boundaries into the volcanic rocks. The mineralization has been observed to be somewhat bound laterally by intersecting lamprophyre dykes which may or may not be useful as an exploration tool.

Three zones of Au-Cu-Ag mineralization have been observed at the Willa deposit: The West Zone, North Zone (called the Main Zone in some historical reports), and the East Zone. Figure 7.2 illustrates the extent of drilling and observed mineralization.

The West Zone is almost entirely contained within the feldspar porphyry and heterolithic breccia units at the southwest margin within the breccia pipe. The West Zone is the largest of the three mineralized zones and most extensively explored. The zone strikes to the northwest, with the northwestern most tip trending north, following the boundary of the breccia pipe. The overall strike length is 200 m and mostly occurs within a vertical extent of 100 m. The zone is approximately 100 m wide and dips to the northeast.

The West Zone has been exposed on the 1025 Level (1000 Crosscut, 950 South Drift, 950 North Drift, 950 Crosscut and the 1025 Raise) that runs parallel to and within the mineralization at approximately midway through the vertical extent of the zone. It has been documented that the mineralized zone is cut off to the north by the Willa Fault and has been displaced to the south by crosscutting faults.

Drillhole data seem to indicate that mineralization continues beyond these faults and into other lithologie.

The North Zone lies higher and to the north of the other zones. It appears to have been offset at several locations along its crude north-south strike. This zone is exposed on surface by Aylwin Creek. The Willa No. 1 and No. 2 adits were collared in the No 1 and No. 2 adits were collared in the North Zone on either side of the creek. The exposed portion of the zone is stained with limonite and chlorite. The zone is continuous and has a strike length of approximately 175 m, a width of 50 m and a depth of 125 m. The zone is partially composed of heterolithic breccia as well as feldspar porphyry, quartz latite porphyry and volcanic rocks of the Elise. The offsets of the North Zone can be subdivided into North Zone and Upper North Zone.

The East Zone is presently the smallest of the three zones. This may be due simply to the lack of drilling in this area. The majority of the zone is below the 1013 Decline, the 1013 Level and the 993 Decline. The East Zone is discontinuous and appears to be a series of sub-parallel veins striking west and northwest up to 80 m with widths up to 5 m. Mineralization extends 175 m downdip and is mostly located east of the contact with the breccia pipe and within the Elise. Further exploration is required to better define this zone. A mineral title (542206) owned by a third party abuts the eastern portion of the East Zone.

The Little Daisy (MINFILE 082FNW070) is a gold-silver polymetallic vein in granitic rocks. On the Property and/or within the Elise there are several polymetallic silver-lead-zinc±gold veins (Figure 3). The Silver Nugget (082FNW072) and Highland Light (082FNW075) are hosted in the Elise. The Mountain Scenery (082FNW074), Silver Band (082FNW073) and Midas Touch (082FNW269) are hosted in the Nelson Batholith. At the LH (082FNW212), gold, along with pyrite, pyrrhotite and arsenopyrite, occurs in silicified shear zones within the Elise.

Due to the wide widths and relatively low grade of the mineral economy dictates that low-cost underground mining methods must be employed. The mining method chosen for recovery of the mineral is long-hole open-stope mining, with sub-levels developed at 15-m vertical intervals. The longhole stopes are designed for:
1) Minimum widths of 3 metres, maximum widths at times exceeding 30 m,
2) Minimum lengths of 20 m and at times, exceeding 100 m.
3) Vertical dimensions varying from 20 m to 75 m.

The 15-m interval for the sub-levels will allow for confirmatory percussion-drill testing for stope boundaries, and where possible, for aintaining blast-hole lengths at 20 m or less.

The Willa mineral responds well to the typical grinding and flotation conditions. The testwork data are considered adequate for process design purposes provided the data are interpreted conservatively and flexibility is incorporated into the flotation circuit to permit easy circuit changes. Gravity concentration is also required in order to recover the coarse gold content. With the present required grind of 80% <50 µm, the MAX mill has a production capacity for Willa mineral, of between 300 and 350 tonnes per day. With the completion of the installation of the larger ball mill, the MAX
mill will be capable of processing in excess of 500 tpd.

Three concentrates will be produced from the Willa deposit: gravity (coarse gold), chalcopyrite (copper/gold) and pyrite (gold). The gravity (gold) concentrate will make up less than 1% of the total concentrate produced.

The MAX mill is a modern mill, constructed in 2007/08, designed to treat the molybdenum ore of the MAX mine and to produce a molybdenite concentrate. The units in operation between 2008 and 2011 included six only Denver Sub-A Rougher cells #25, (each, 1.4 m3) cells, four only Denver Sub-A cleaner #24 cells (each, 0.68 m3), and two only Denver Sub-A #15 cells (each 0.34 m3) for cleaning. However, additional flotation cells installed but never commissioned, and include ten only Agitair #48 cells (1.13 m3/cell), and twelve only Wemco #66 cells (each, 1.87 m3), in various states of repair.

Additions required for the processing of the Willa mineral will include:

* A Falcon SB750 high-gravity gold concentrator c/w screen, autopac, concentrate and underflow return pump, concentrate holding tank with agitator and/or air injection system, half-size Deister concentrating table, pump for pumping table tails to a table tails holding tank with agitator and/or air injection, a pump to pump the table tails to the copper concentrate thickener, a Wabi Furnace for smelting doré complete with adjuncts.
* A lime circuit for maintaining the required flotation pH in the range of 11.0 to 11.5 for collection of a copper concentrate.
* A sulphuric acid dosing system to reduce the pH to 7.5 to 8.0 for recovery of the pyrite concentrate, and to bring the final effluent to within the allowable pH discharge limit.
* Additional cleaner flotation cells for producing the copper concentrate. Note that the concentrate tonnage is expected to be approximately double that of the past MoS2 concentrate.
* Six only 6” (15 cm) Krebb cyclones (smaller cyclones for fine overflow product are preferred to the present larger ones but more are required).
* Additional rougher flotation cells for producing a potential auriferous pyrite concentrate (presently on site).
* A high-density polyethylene-lined short-term pyrite concentrate holding pond.