Early investigations of the Thierry Deposit by workers such as Bowdidge (1970), Patterson (1980), and Patterson and Watkinson (1983, 1984) concluded that the ores at the Thierry Deposit had undergone intense modification after their initial deposition as magmatic sulphides. This observation also applies to the K1-1 area.

Any model of mineralized rock genesis at the Thierry Project must take into account the unusual Cu/Ni, Pt/Pd and chalcopyrite pyrrhotite ratios in the rocks. According to Naldrett and Cabri (1976), intrusive complexes similar to those at Thierry Deposit contain sulphides with a coppernickel ratio of 2:1, a platinum-palladium ratio of 1:4, and a chalcopyrite/pyrrhotite ratio of 1:10.These ratios at the Thierry Deposit are approximately: copper-nickel 8:1, platinum/palladium 1:4 and chalcopyrite/pyrrhotite 1:1.

Mineralization at the main Thierry and adjacent K1-1 deposits, is more or less coincident with what is best characterized as a chlorite biotite-hornblende altered mylonitic shear zone (the “CBS shear zone”). The shear zone extends across the ultramafic intrusive along a strike length of about one kilometre and a width up to 50 m. Within the shear zone mineralization is hosted by highly schistose rocks containing stringer sulphides to less schistose ultramafic rocks containing massive stringers or veins and disseminated sulphides. Primary sulphides, listed in approximate order of decreasing abundance are pyrrhotite, chalcopyrite, pyrite and pentlandite. Cubanite, bornite, magnetite and minor ilmenite have also been identified. Violarite and mackinawite have developed from alteration of pentlandite.

Outside of the main mineralized zone, chalcopyrite and bornite occur as stringers as well as finely dissemination sulphides. Bornite is commonly associated with carbonate and quartz veins. Oxidized mineralizations are reported to contain violarite, millerite and bornite.

Copper-nickel-PGE mineralization at the Thierry and K1-1 deposits is hosted within a highly deformed and altered ultramafic sequence. Copper-nickel-PGE mineralization consists of:
- Sulphide matrix breccia;
- Blebs and small stringers, occasionally net textured sulphides; and
-Disseminated sulphides.

The sulphide mineral assemblage consists of chalcopyrite, pyrrhotite, pentlandite and pyrite.

The Thierry Deposits will be mined by a combination of conventional open pit methods at the K1-1 Open Pit Deposit (“the K1-1 Deposit”) and underground long-hole retreat methods at the Thierry Underground Deposit (“the Thierry Deposit”).

THE K1-1 DEPOSIT:

The proposed K1-1 open pit would be a conventional open pit operation utilizing fully demonstrated, open pit mining equipment and drill/blast/load/haul technologies. The open pit is scheduled to produce 11,000 tonnes per day.

THIERRY DEPOSIT:

Access to the Thierry Deposit would be via a 6 m to 6.5 m diameter, concrete lined 965 m (3,160 ft) deep fresh air shaft and a -15% ramp from surface to a depth of 1,260 m (4,130 ft). There will be two shaft loading pocket stations, one at a depth of 475 m (1,550 ft) and a second at a depth of 920 m (3,010 ft). Two hoists would be configured to transport workers and skip mineralized rock between surface and the underground loading pocket levels. Operating materials would be transported to and from the mine via the ramp from surface.

A conceptualized mining plan has been developed using mechanized trackless mining equipment. The primary mining method would be conventional longitudinal long-hole retreat with paste backfill. Above the 490 m (1,610 ft) elevation sub-levels will be developed at 15 m (50 ft) vertical intervals. Below the 490 m (1,610 ft) elevation sub-levels will be developed at 21 m (70 ft) vertical intervals. Drifts-in mineralization would be developed to the full width of the Thierry Deposit. These drifts would provide access for the successive operations of slot raise development, blasthole drilling and blasting and backfill placement. The average thickness of the Potentially Economic Portion of the Mineral Resource is 6.7 m (22.1 ft). Remotely operated underground load/haul/dump (“LHD”) units would remove broken mineralization from the stope and from the excavated drifts-in-mineralized rock. The stopes would be backfilled primarily with cemented paste backfill, supplemented with waste rock. Initially mineralization above the 290 m (950 ft) level will be mined and hauled up the existing Ramp, while the shaft is being sunk and commissioned from the start of work to the 35th month. Once the shaft is commissioned both the 475 m (1,550 ft) and 920 m (3,010 ft) Levels will be developed out of the shaft.

A steady state production of 4,000 tpd development and stope production will begin during the 27th month, on a schedule of 350 days per year. Stope mining will proceed upwards from the 290 m (950 ft), 475 m (1,550 ft) and 920 m (3,010 ft) Levels and downwards from the 920 m (3,010 ft) Level towards the end of the operation.

It is estimated that 432 stopes would be mined over the mine life. This would generate an average of 4,000 tpd composed of an average of 3,421 stoping tonnes and 579 tonnes from developing the drifts-in-mineralization and slot raises.

The Long-hole Longitudinal Retreat mining method is initially developed with sublevel drifts developed to the full width of the Thierry Deposit every 15 m (50 ft) or 21 m (70 ft) vertical intervals (“undercuts” and “overcuts”) from the access cross-cuts. A 1.8 m by 1.8 m slot / ventilation / backfill raise is then driven at the end of the sublevel drift.

Blastholes measuring 92 mm (35/8 inches) in diameter would then be drilled from the sublevel either up or down to adjacent sublevels. These blastholes would typically be drilled on a 2 m by 2 m pattern, in order to break the rock into the open slot and stope. The blasting powder factor necessary to produce adequate fragmentation of the rock, using emulsion explosives, is estimated to be approximately 0.60 kg/t. An average estimated 3,421 tonnes of mill feed would be excavated on a daily basis from a combination of stopes. Stope development activities would add another 579 tonnes mill feed to the total, to provide a combined 4,000 tpd of mill feed.

Initially mineralized rock above the 290 m (950 ft) Level will be mined and hauled up the existing Ramp, while the shaft is being sunk and commissioned from the start of work to the 35th month. Once the shaft is commissioned, both the 475 m (1,550 ft) and 920 m (3,010 ft) Levels will be developed from the shaft. Steady state (commercial production) 4,000 tpd development and stope mineralized rock production will begin during the 27th month. Stope mining will proceed upwards from the 290 m (950 ft), 475 m (1,550 ft) and 920 m (3,010 ft) Levels and downwards from the 920 m (3,010 ft) Level, on a retreat basis, working a maximum eight sublevels (levels) at any given time. Paste backfill and development waste would be placed in the mined out area of the stope, from the level above through piping and/or boreholes, as stope drill/blast/mucking cycles progress.

The stope mining cycle would include long-hole drilling, blasting, mucking and backfilling. The overall stope mining productivity is estimated to be a minimum 428 tpd per level. At any given time, a maximum of eight sublevels (levels) should be available for stope mining, each with at least one stope available for mining. On average this would provide for an average production rate of 428 tpd per level, 3,421 tpd overall. When no development mineralized rock is being produced a minimum fifth stope would be available for stope mining.

A conventional process plant and flowsheet has been selected, including crushing and grinding to a 100 micron grind at an annual rate of 5.25 million tpa (15,000 tpd). This will be followed by a 2 product flotation circuit; a copper concentrate containing low nickel but 50% of the PGM, and a copper-nickel concentrate containing 8.6% metal (1.7% Cu, 6.9% Ni) and low PGM. The projected concentrates would be shipped to an off-site smelter. Estimated recoveries are:
1. Copper concentrate: 30.4% Cu, 0.8% Ni, with 92% copper recovery and 50% Au and PGM recoveries
2. Copper-nickel concentrate: 1.7% Cu, 6.9% Ni with 2% copper recovery and 50% Ni recovery

Development mineralized rock extraction and processing commences in the 16th month following the commencement of project development with commercial production starting during the 27th month.