The Buchans area deposits and showings are classified as being of volcanogenic massive sulphide (VMS) association, primarily comprised of base-metal sulphides and barite and show strong similarities to the Kuroko style deposits of Japan (Thurlow, 1981).

The Buchans deposits include three distinct but genetically related deposit types, and occur as in situ sulphides, mechanically transported sulphides, and stockwork sulphides (Thurlow and Swanson, 1981).

The Lundberg Deposit as defined in this Report is comprised of two mineralized zones, these being the Lundberg zone and the Engine House zone, both of which are hosted by felsic to intermediate volcanic rocks of the Buchans Group and lie within the NE-SW trending Central Mobile Belt (CMB) of Central Newfoundland (Williams, 1979; Kean et al., 1981; Swinden, 1990, Williams 1995). The Buchans Group is a Lower Ordovician volcanic sequence that ranges in composition from basalt to rhyolite and shows a relative increase in its felsic component with height in the stratigraphic section (Thurlow and Swanson, 1981). Five main Zn-Pb-Cu-Ag-Au deposits were historically mined at Buchans and all occur in association with the same felsic stratigraphic horizon within the Buchans Group (Thurlow and Swanson, 1981). The Lundberg Deposit surrounds the former Lucky Strike mine site, where ASARCO operated a near-surface underground and glory hole mining operation until mine closure in 1984. The Lundberg Deposit is main ........

Preliminary Economic Assessment (2011) of the Lundberg and Engine House zones was completed by Wardrop Engineering Inc. (a Tetra Tech company), based on the 2008 resource estimate by Mercator. This study determined that the combined deposits have potential to support a stand-alone, 5,000 tonne per day open pit mining and milling operation having a 10 year mine life.

Pit design criteria includes:
- 10 m benches;
- 85° face angle;
- double benching;
- 15 m catch-bench;
- overall pit slope of 50°, without inclusion of a ramp;
- 26 m ramp width, double lane (based on 90 t haul trucks);
- 17.5 m ramp width, single lane (based on 90 t haul trucks).

An approximate pushback width was determined based on:
- A Komatsu PC2000-8 diesel hydraulic shovel, loading Caterpillar 777F haul trucks.
- A minimum double-side loading width of a diesel hydraulic shovel at 26.3 m for the Caterpillar 777F haul truck.
- A 26 m haul road width.
- The proposed minimum pushback width is the sum of the minimum doubleside loading width at 26.3 m, and the haul road width at 26 m, for a total minimum width of 52.3 m.

MINE DEVELOPMENT AND PRODUCTIONS CHEDULE
The mine development used a number of push-backs, or phases, designed to meet the following objectives:
- enable the mining of high grade resource as early as possible;
- effectively reduce stripping ratio in the initial mining stage;
- balance the st ........

- subscription is required.