The Garrcon Deposit on the Garrison Property is a low grade bulk tonnage gold deposit which includes the higher grade historic Shaft, South and North Zones and recently defined Green and East Zones. It occurs within the Timiskaming Assemblage adjacent to the Porcupine-Destor fault and is a zone of brecciated, silicified, sandstone with gold associated with disseminated sulphides (predominantly pyrite) and irregular quartz veinlets.

The Garrcon Deposit located at UTM 5,374,000N and 579,000E on the Property comprises a broad zone of low grade enveloping gold mineralisation that includes the higher grade historic Shaft, South and North Zones as well as the Green and East Zones identified by the Company’s drill programs. It occurs within the Timiskaming Assemblage adjacent to the Porcupine-Destor fault and is a zone of brecciated, silicified metasediment with stockwork quartz-carbonate veins and veinlets and minor disseminated sulphides cut by narrow variably altered lamprophyre and syenite dikes.

Gold mineralisation in the Garrcon North and Garrcon Shaft/South zones is hosted by Timiskaming-age metasedimentary rock sequences that include greywacke, arkose and iron formation cut by narrow lamprophyre and syenite dikes, occurring adjacent to the Destor-Porcupine Fault Zone. These metasedimentary sequences have been hydrothermally altered and mineralized in distinct zones persisting to depths greater than 650 meters vertically. The intrusive dikes are variably altered. Gold occurs in a complex system of stockwork veins hosted in a zone of brecciated and silicified metasediments. The veins are composed predominately of quartz-carbonate (calcite, dolomite, and ankerite) with and without albite. The stockwork veins are normally less than one centimeter in width with many being only a half centimeter wide or less. Gold occurs primarily as native gold within the stockwork veins with minor dissemination into the vein walls. Higher grade intersections (above 10 g/t) are frequently intersected in intervals where pyrite makes up much less than 1% of the total rock. Principal minerals are native gold, pyrite, magnetite, specularite, and pyrrhotite with subordinate chalcopyrite, sphalerite, galena and arsenopyrite. Pervasive wall rock alteration is common adjacent to the veins, usually consisting of carbonatisation (ankerite or ferroan dolomite) and minor sulphides (pyrite and pyrrhotite).

Mining will be by open pit with a stripping ratio of about 2:1. Shovels will be used to load 100 ton haul trucks. Ore will be designated, and the remaining material sent to the waste dumps. If the waste material contains sufficient gold to justify recovery by heap leach, it would be sent to a primary crusher and from there either to the processing plant or a heap leach facility.

A conventional gravity-agitated cyanide leach plant capable of treating 11,300 tonne per day plant is planned for higher grade ore, + 0.3 g/tonne, (average 0.9 g/tonne) and a seasonal heap leach facility is planned for the lower grade material with grades between 0.15 g/tonne and 0.3 g/tonne. The processing plant will operate 365 days per year and the heap leach facility will operate about 274 days per year (9 month operating season), treating 8,000 tonnes. per day or about 2.3 million tonnes per year.

In this circuit, it is assumed that sulphide separation requires a finer grind than 2000 micrometers and that essentially half of the crusher product will be ground. It also assumes that the sulphide separation is performed at a size of approximately 75 micrometers. A gravity separation circuit is included, as spirals, however, this may have to be replaced by a flotation circuit. In addition, no waste stream is produced at this point. The sulphide stream is assumed to represen ........