Four main styles of base metal mineralization have been identified on the Property:
• Hydrothermal Quartz Veins (MQV)
• Stockwork (STK)
• Stratabound (SMS)
• Mississippi Valley type (MVT)

The Hydrothermal Quartz Veins of the MQV (and STK), are characteristic of polymetallic base metal veins.

Quartz veins containing base metal mineralization occur in a north-trending, 16 km long corridor in the southern portion of the Property, where the occurrences are exposed on surface. Vein showings were referred to historically as Zones 1 through 12. The Main Zone, which includes the Main Quartz Vein (MQV) and other styles of mineralization, is found in historical Zones 1, 2 and 3. Vein Zones 4 to 12 extend discontinuously for about 10 km to the south of the Main Zone. The Rico showing is located approximately 4 km north of the Main Zone.

Stockwork (STK) type mineralization is associated with the MQV and does not appear to represent a true stockwork but rather a series of tensional splays from the MQV. STK mineralization is exposed underground in the 880m L and has been intersected in drillholes.

Stratabound (SMS) mineralization is associated with several of the vein zones and occurs near the currentlyknown lower limits of vein mineralization. Vein mineralization contains fragments of SMS indicating that the deposition of SMS pre-dated vein formation. SMS mineralization is not exposed on surface or underground and is known only from drillholes.

Mississippi Valley type (MVT) showings in the northern section of the Property are developed over a distance of approximately 10 km and from north to south are referred to as the Samantha, Joe, Horse, Zulu, Zebra and Road.

The Prairie Creek Mine will be a 100% underground mining operation extracting the majority of ore from a steeply-dipping, narrow, base metal bearing vein-fault structure referred to as the Main Quartz Vein (MQV). Three levels of underground adits (970L, 930L, 883L) were established previously at the Mine. Several shrinkage stopes were partly mined above the 930 and 883 levels, generating a stockpile of approximately 10,000 tonnes of mixed ore and waste that is stored near the mill.

Mining will be by longhole open stoping (LHOS) in the MQV vein and in the Stockwork (STK) area. Drift and fill (DAF) will be employed in the Stratabound Massive Sulphide (SMS) area. An average mining rate of 1,600 tonnes per day of ore is projected. At steady-state, approximately 585,000 tonnes of ore per year will be mined. Mine life is projected to be 14.5 years.

Mining of the MQV will be by LHOS. The mining level in the ore at the 883 m elevation has previously been established along a significant part of its length but will be slashed to 4.5 m W x 4.5 m H to serve as a mucking horizon. The average vein width is less than 4.5 m; where it exceeds 4.5 m, the level and sub-level widths will be adjusted appropriately. Mining below the 883 level will require similar main levels, driven 4.5 m W x 4.5 m H, to be established every 60 m vertically; within this 60 m height there will be a sub-level driven every 15 m or 20 m at 4.0 m x 4.0 m dimensions. Generally, a 15 m sub-level interval is adopted where the vein width is less than 3 m. Access to the sublevels will be gained by ramp and cross cuts. Ore development in the vein will be for a distance of up to 250 m north and south (each side) of the access point. Slots will then be developed between sub-levels followed by retreat LHOS towards the access in approximately 30 m panels. The lowest elevation sub-level will lead the mining front, with all ore being mucked from the main (mucking) level. Broken ore will be drawn down in a controlled fashion so as to provide interim wall support and assist in minimizing wall dilution. Fill fences will be constructed on all levels other than the uppermost, after the extraction of each panel. The mining cycle will thus involve ore development, followed by drilling, blasting, mucking, and filling.

The STK area, and any MQV areas where geometry necessitates less than 60 m high extraction, will generally be mined in similar longhole retreat fashion at individual panel heights up to 20 m. For STK mining, some access development through paste fill is projected for the later stages in the mine life.

The SMS zone is approximately tabular in nature, dipping at about 15 to 20 degrees and with thickness up to, nominally, 20 m. It will be mined using a primary-secondary DAF mining method. Panels will be driven at 5 m H x 7.5 m W to the extremities of the ore before filling with, largely, paste fill. Primary panels will thus generally have ore on either side, while secondary panels will generally have backfill on either side. Binder concentration in secondaries will generally be significantly lower than that for primaries. Extraction of each 5-m cut on any horizon will be followed by extraction of the cut above in similar fashion. Each access into the zone may be used for up to three cuts by taking down backs in the access after each cut is complete.

Metallurgical tests indicate that the Prairie Creek mineralization is amenable to a combined process of pre-concentration by dense media separation (DMS) and sequential flotation circuits for lead sulphide, zinc sulphide, and lead oxide concentrates.

The current crushing facilities have a 1,750 tpd capacity, with an installed jaw crusher, short-head cone crusher, double-decked screen, and conveyor systems feeding an 1,800 t fine ore bin. A new dense media separation (DMS) plant, with a nominal feed rate of 1,600 tpd, will be installed downstream of the crushing circuit and is expected to reject an average of approximately 25% of the feed as waste with minimal metal losses. The milling circuit is designed for 1,200 tpd at nominally 80% passing 156 µm. The ROM ore is expected to be softer initially and then harder as the mine develops deeper and an increase in the Bond Work Index is anticipated. As such, a new secondary ball mill (200 kW tyre mill) is planned for installation, ........