Gold mineralization on the Property includes a large, disseminated, pyritic, quartz-poor, structurally controlled style of mineralization. Collectively, this style of mineralization is best described as forming part of the IRGS. The mineralized zones within and surrounding the locally porphyritic syenitic intrusive complex are likely related to the corresponding intrusive-hydrothermal system, and are predominantly controlled by rock permeability, created either by rheological contrasts between the different lithologies and their associated alteration and/or by deformation zones, particularly along lithological contacts.

DOUAY WEST ZONE
The Douay West (DW) Zone is located five to thirty metres north of a graphitic fault zone. The mineralized zone extends over a strike distance of approximately one kilometre and trends 100°. The zone is composed of several sub-parallel bodies that trend from 90° to 100°, and dip from -55° to -65° to the south. The drilled thickness of each of the individual bodies ranges from less than one metre up to 65 m.

Gold bearing mineralization is associated with pyritized and altered zones (albitized, silicified, carbonatized, hematized) within mafic volcanic rocks and at the contact of a gabbroic intrusive. Leaching, albitization, carbonatization, and pyritization are the dominant alteration and mineralization patterns. Sericitization and/or ankeritization and weak hematization are present. Visual estimates of 1% to 30% pyrit ........

The PEA proposes a conventional truck and shovel open pit, followed by ramp access, long-hole open stoping in the underground mine.

Both the open-pit and underground operations will deliver material to a stockpile area near the crusher.

Since the LOM currently being contemplated is relatively short, the entire mining operation would be conducted on a contractor basis. The mining methods and production capacity have been chosen to match an ultimate milling throughput rate of 900 tonnes per day (“tpd”). This total will be composed entirely of feed from the open pit operation until the underground mine has been developed sufficiently to provide underground mill feed.

OPEN PIT
Hard rock pit slopes were assumed to be stable at a 45 degree inter-ramp slope. Reducing the cut-off lower than this grade effectively accelerated the incremental increase in the stripping ratio to undesirable levels.

The open pit mining dilution was estimated to be 16.3%, at a grade of 0.32 Au g/t. Mine extraction in the open pit mine is estimated to be 97%.

The ultimate pit would measure approximately 450 m long by less than 400 m wide and have an ultimate depth of approximately 80 m. Whereas there is mineralization below this elevation, the stripping ratio required to recover this material would be high. Also, it is expected that this material could be recovered at a later date using underground mining methods.

UNDERGROUND MINE

A crusher/sizer facility will be installed near the rim of the pit to prepare the run-ofmine material for transport by highway trucks.

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