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 sec ........

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 MA ........