Mineralization containing economically significant concentrations of Mg is known to occur in the ultramafic rocks which have undergone serpentinization. This rock type makes up the predominant lithology described at the Project, and occurs widespread. Lower concentrations of Mg within the serpentinite are present in dioritic intrusive rocks and lenses of andesite/gabbro.

Record Ridge will be mined using conventional open pit methods using a default 365 day production cycle comprising of one 12 hour shift delivering approximately 3,000 t/d of material to the crusher. Waste material below specified cut-off will be hauled from the pit and placed in a designated waste dump location.

Mill material will be mined from the pit and transported to the processing facility near the mine and placed in a stockpile and subsequently fed into the crusher bin by front-end-loader.

The mined magnesium oxide bearing material will be delivered to the comminution circuit. It will undergo primary crushing with a jaw crusher. The crushed materials will then be accumulated in storage for eventual grinding. Close circuit grinding will be undertaken with a SAG and ball mill system with interstage hydrocyclone classification to control energy use and product size. The ground material will then undergo liquid solid separation via thickening with water reclaim back to the comminution circuit. The ground solids will then be treated hydrometallurgically by leaching magnesium with sulfuric acid. The sulfuric acid will be produced on site by burning elemental sulfur. The majority of the heat from the acid plant will be reclaimed in the form of steam for use in the plant and also potentially as co generated electrical power as needed in the process. The leaching will be conducted in a series of continuous stirred tank reactors heated by steam produced from the acid plant. The leach slurry will be treated with WHY magnesium oxide materials and forced aeration to neutralize excess sulfuric acid, precipitate impurities such as iron and leach more magnesium into solution. The leached and neutralized materials will then be subjected to a counter current decantation circuit for effective liquid solid separation and liquid reclaim. The leached solids will be filtered and deposited in a managed waste repository on site. The recovery of magnesium will be via carbonate precipitation by the addition of soda ash. The precipitated magnesium carbonate will be filtered away from the solution. These clarified solutions will then undergo triple effect evaporation crystallization using heat from the acid plant for removal and recovery of by product sodium sulfate solids. The solution is then recycled back to the hydrometallurgical leaching process stage. If the plant solution balance requires it, a portion of the solution can be treated by filtration, ion exchange and reverse osmosis to produce a clean waste water product for discharge or reuse elsewhere in the mining operation. The magnesium carbonate produced is dried and calcined with heat from acid plant to a burned magnesium oxide product. Then the burned magnesium product is fused in an electric furnace to produce fused magnesia for sale. Any waste products from drying, calcining or fusion will be recycled back through the process to eliminate solid wastes and maximize require utilization.