At the Mirado project the gold mineralization in the Main zone is primarily associated with stockwork and disseminated sulphides in variably altered rock. The characteristics of the gold mineralization in the Main zone are similar to intrusion-related gold mineralization (Robert et al. 2005). These atypical deposits display similar regional-scale controls as orogenic deposits. They differ in styles of mineralization, metal association, interpreted crustal levels of emplacement, and relative age. Those gold deposits show a close spatial association with high- level porphyry stocks.

The gold mineralization at the Mirado Project that is the subject of this report is mainly associated with the zone historically named the Main Zone (and also referred to as the South zone is some historical reports). The shaft is located in the North zone located approximately 400 m northeast of the pit, but almost all exploration work since the 1960’s has been focused on the Main Zone that is in the vicinity of the open pit.

Mineralization defined in the current report forms three lenses north-northwest striking lenses with up to 300 m strike length and widths of 10 to 50 m. The lenses dip west at 45 to 60o and are separated by barren intervals that are 20 to 30 m wide. The strike of the mineralized zones is broadly conformable with the regional northwest lithological and structural trends, however, the dip appears to be discordant to the described lithological trends.

The PEA proposes a conventional truck and shovel open pit mining operation to extract the Mineral Resources at the Mirado Project.

Some marginal material marginally sub-economic mineralized with gold grades near but below the cut-off grade, will be stockpiled separately for possible future processing.

For pit optimization, a base case gold price of US$1,300/oz was used along with an inter-ramp pit slope of 45°. The Mineral Resources were compared in terms of gold ounces potentially produced and the related waste/overburden stripping ratios. Of special interest was the rate of increase (or decrease) of certain factors in these comparable pit shells, as the open pit shells went deeper.

The ultimate pit would measure approximately 500 m long by 350 m wide and have an ultimate depth of approximately 100 m. Stable inter-ramp slope angles on the order of 50 degrees have been utilized in the pit design.

Open pit mining will utilize conventional and well established open-pit mining practices, with successive drill and blast, load and haul cycles using a drill/loader/truck mining fleet. The overburden and waste rock material will be hauled to overburden and waste disposal areas near the pit.

Since the life-of-mine (“LOM”) currently being contemplated is relatively short, the entire mining operation would be run on a contractor basis. The mining methods and production capacity have been chosen to match a projected ultimate proces ........

The construction of an on-site processing facility would not be justified given the current estimates of the quantity of potential process plant feed that can be produced by the Project.

The run-of-mine (“ROM”) mineralization will be loaded into mining haul trucks by front end loaders and delivered to a primary crushing facility near the pit rim, or to a stockpile near the crusher. The size of the mineralized rocks will be reduced by the crusher to 100% passing 0.15 m.

From the primary crusher, the material will be delivered by highway transport truck to be delivered to the toll processing facility.

The closest ore processing facility is the operating Macassa Process Plant, which is operated by Kirkland Lake Gold Ltd.

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