In 2001, Teck-Corona originally described the Goliath Gold Deposit as a shear-hosted mesothermal gold deposit with structurally controlled gold mineralization related to local silica and sulphide replacements, and widespread, small, discordant to concordant quartz and sulphide veins. However, the deposit is not hosted within a shear-zone and is missing most of the critical attributes of these types of deposits. The host rocks do not contain typical iron-carbonate alteration mineral assemblages and gold is not commonly hosted by quartz veins in association with silicification (Beakhouse, 2002). Furthermore, the gold mineralization is generally associated with highly elevated silver (locally >100 g/t Ag but varies significantly across deposit), zinc and lead in the form of stringers and layers within felsic volcanic schist which is not common in shear-hosted mesothermal gold deposits (Page, 1995a).

Treasury favours a hybrid deposit-type model, also known as a Pre-orogenic Atypical Greenstone Belt Gold Model as a promising genetic model to explain the geology, structures and mineralization observed within the Goliath Gold Deposit. In this model, early gold-rich volcanogenic sulphide mineralization is overprinted by subsequent deformation and alteration events which can contribute to further concentration and/or remobilizing of both precious and base metals. This model also integrates potential VMS and Magmatic Hydrothermal Archean Lode Gold Deposit (Magmatic Hydrothermal) models in the formation of the deposit. It is likely that the Goliath Gold Deposit does not fit into any one idealized model and neither should be discounted.

Hardie et al. (2012) suggested the gold mineralization at the Rainy River gold deposit can be interpreted as a hybrid deposit-type consisting of an early gold-rich volcanogenic sulphide mineralization [pre-orogenic] overprinted by shear-hosted mesothermal [post orogenic] gold mineralization. Both styles of gold mineralization have been progressively overprinted by deformation, whereby auriferous quartz veins post-date the sulphide stringers and veins and were emplaced during active deformation. The presence of isoclinal folding of the pyrite-sphalerite-chalcopyrite-galena stringer veinlets gives the mineralization a relative timing of pre- to syndeformational. Folded mineralized stringers are found within the quartz-sericite- schist at the main deposit.

Treasury believes that there are similarities between the Rainy River deposit and Goliath and have integrated the Hybrid deposit-type model into a final simplified four-stage Hybrid model for the genesis of Goliath Gold Deposit.

The main resource area has been defined by extensive diamond drilling efforts concentrated over a strike length of over 2.0 km. To date, ten (10) zones containing gold and silver mineralization have been identified within the Central Unit of the main deposit.

From south to north, they are the:
- Hanging Wall Zones (HW1 to HW4 Subzones) hosted in mostly BMS rock units and small amounts of metasedimentary and porphyry intrusive rocks;
- Main Zone (M1 and M2 Subzones) which is 5 to 40 m wide and occurs principally in silicified and sulphide mineralized (sphalerite, galena and pyrite) MSS rocks;
- B1 and B2 Zones hosted in BMS rocks residing between the Main and C Zones;
- C Zone (C1 and C2 Subzones) hosted in silicified and sulphide-bearing (sphalerite and galena) MSS Rocks; and
- D and E Zones hosted in mostly a mixture of MSS and BMS rocks surrounded by significant amounts of metasedimentary rocks and minor porphyry intrusive rocks.

The majority of the historical gold and silver resource estimates reside in the "Main Zone" and "C Zone". At Goliath, the gold-bearing zones all strike from 090° to 072° with dips that are consistently 72°-78° toward the south or southeast. The main area of gold, silver and sulphide mineralisation and alteration occurs up to a maximum drill-tested vertical depth of ~805 metres (TL135) below the surface, over a drill tested strike-length of approximately 2,300 metres within the current defined resource area. Gold mineralized zones remain open at depth. The historic Teck-Corona drilling confirmed that anomalous gold mineralisation occurs over a strike length of at least 3,500 metres (Corona, 1998). Exploration work by Treasury has shown alteration zones containing intersections of gold mineralisation extend over a strike length of at least 5,000 metres. Overall, rocks surrounding the principal defined target zones are often anomalous in gold mineralization (background gold concentrations).

The detailed preliminary design includes mill feed and waste scheduling on a yearly basis. The production rate would be a maximum of 2,500 tonnes per day (t/d), producing an average of 875,000 tonnes per annum (t/a). For the first year, production would be solely from the pit while the underground mine is being developed. In Year 2, a small amount of production would come from underground, with the pit supplying the balance. In Year 3 and onward, the underground would supply the majority of the mill feed with the pit supplying the balance.

Surface mining would be carried out using conventional drilling and blasting methods. Excavators would load material into trucks for haulage to the mill or to waste stockpiles. Mining would commence at the east end of the pit and work its way west. Initially, stripped overburden and waste rock would be piled on surface near the pit. At some point in the sequence, stripped overburden and waste rock could be backfilled into mined-out parts of the pit.

The fourth haul truck will be purchased in Year 1, after the start of production. The light vehicles will be replaced half-way through the pit life; the other equipment will be used for life-of-mine.

The orebody will be accessed via a single decline located outside of but near the open pit and centrally located to allow for efficient delivery to the crusher facilities. Following the excavation of a box cut and portal, the decline will be developed at a gradient of 15% to allow for efficient material transport out of the mine. Underground mine trucks will haul mill feed and waste out of the mine to the ROM pad and the waste storage facilities. The decline will form part of the primary ventilation circuit.

Levels will be spaced at 30 m vertical intervals beneath the open pit. Level development will be developed at 5 m wide and 5 m high to accommodate all mine services while allowing for on level trucking. Levels will be developed at a slight gradient to facilitate water draining back to sumps located near the main level access. Due to the orebody geometry and the selected cut-off grades, the majority of the levels have been designed to cater for multiple simultaneous production fronts. Ventilation raises will be excavated between levels near the eastern and western extents of the central mineralized zone providing primary ventilation to the main production areas. Secondary ventilation will be required for mining the eastern and western mineralized zones.

The underground mining method selected as the most appropriate is long hole open stoping with cemented backfill. Mineable stopes were designed based on orebody thickness and orientation, considering geotechnical recommendations, cut-off grade and the practical limits of the proposed equipment. The stope widths range from 5 m to 20 m, with an average stoping width of 8.6 m. The stope strike length has been limited to 25 m to maintain a hydraulic radius (HR) of 7.3, which is inside the proposed stable range (HR= 7.5) for a supported hangingwall.

Following completion of mining a stope between two levels, the resulting void will be filled with a cemented backfill. Typical cemented backfill consists of classified plant tailings and 5% Portland cement. Where the backfill is only required to form a working surface, and will not be exposed due to future stoping, waste rock can be used as backfill. The use of cemented backfill removes the requirement to leave high value mill feed in-situ as pillars.

At 30 m crown pillar will be left between the base of the open pit and the first level of the underground mine. Towards the end of the mine life, extraction of this pillar should be possible following a retreat extraction sequence. If required, the resulting void can be filledwith waste rock tipped into it from the open pit.

Goliath is a free-milling gold deposit primarily composed of quartz-sericite, biotite-muscovite schist and a minor metasedimentary rock component. The dominant non-sulphide gangue materials are quartz (56%), micas (22%), and feldspars (17%). Sulphide minerals, consisting primarily of pyrite and pyrrhotite, account for less than 2% of the deposit. The material contains coarse gold and is readily amenable to conventional processing routes including gravity concentration combined with CIL or flotation. Life of mine head grades are presently 3.81 g/t gold, and 10.55 g/t silver. The highest recoveries achieved in testwork were 95.5% gold and 63% silver accomplished using the gravity/cyanide leach flowsheet.

A standard gravity/CIL circuit and is considered the base case for the proposed processing facility.

The mill feed will be primary crushed with a jaw crusher and then ground to the target leaching P80 using a single stage SAG mill and classifying cyclones. The cycl ........