The New Polaris deposit is classified as a mesothermal lode-gold deposit (Hodgson, 1993).

“In general, it is quartz-vein-related, with associated carbonatized wall rocks. The deposits are characterized by a high gold/silver ratio, great vertical continuity with little vertical zonation, and a broadly syn-tectonic time of emplacement. They are commonly associated with pyrite, arsenopyrite, tourmaline and molybdenite. Mineralization may occur in any rock type and ranges in form from veins, to veinlet systems, to disseminated replacement zones. Most mineralized zones are hosted by and always related to steeply dipping reverse- or oblique-slip brittle-fracture to ductile-shear zones.”

“Past exploration studies have demonstrated that the New Polaris vein systems have all of the attributes of the orogenic vein gold deposit including, but not limited to association with major structural break, quartz-carbonate vein association, low-sulphide assemblage of pyrite and arsenopyrite, chloritic and sericitically altered wall rocks and persistent gold mineralization over a vertical distance of nearly 1 km.”

“Mineralization of the New Polaris deposit bears strong similarities to many Archean lode gold deposits such as the arsenical gold camp of Red Lake, Ontario where the goldbearing arsenopyrite is disseminated in the altered rock and in quartz-carbonate stringers.

The vein mineralization consists of arsenopyrite, pyrite, stibnite and gold in a gangue of quartz and carbonates. The sulphide content is up to 10% with arsenopyrite the most abundant and pyrite the next important. Stibnite is fairly abundant in some specimens but overall comprises less than one-tenth of 1% of the vein matter. Alteration minerals include fuchsite, silica, pyrite, sericite, carbonate and albite.

In general, the zones of mineralization ranging from 15 to 250 metres in length with widths up to 14 metres appear to have been deposited only on the larger and stronger shears. Their walls pinch and swell showing considerable irregularity both vertically and horizontally. Gold values in the veins have remarkable continuity and uniformity, and are usually directly associated with the amount of arsenopyrite present. The prominent strike directions are north-south and northwest southeast, which is interpreted to be within a major shear zone. Up to 80% of the mine production was from “structural knots” or what is now known as “C” zones. In detail the “C” zones are arcuate structures.

The vein mineralization has well marked contacts with the wall rock. The transition from mineralized to non-mineralized rock occurs over a few centimeters. The mineralization consists of at least 3 stages of quartz veining. The initial stage of quartz-ankerite introduced into the structure was accompanied by a pervasive hydrothermal alteration of the immediately surrounding wall rock. Arsenopyrite, pyrite and lesser stibnite were deposited with the alteration. Later stages of quartz-ankerite veining are barren and have the effect of diluting the gold grades in the structure. The sulphide minerals are very finegrained and disseminated in both the wall rock and early quartz and ankerite veins. Free gold is extremely rare and to the end of 2005 had not been recognized in core samples. The majority of the gold occurs in arsenopyrite and to a lesser extent in pyrite and stibnite. Because there is no visible gold and the host sulphides are very fine-grained and disseminated there is little nugget effect and gold values even over short intervals rarely exceed 1 opt.”

The mine plan uses a combination of shrinkage, Alimak, cut and fill and longhole stoping. Development will include a decline from surface and existing working and sublevels.

For areas greater than 5.5m in thickness, longhole stoping is used; and in areas less than 5.5m in thickness Alimak assisted shrinkage stoping methods are used.

All previously mined stopes were mined using a shrinkage stoping methods. For levels ‘D’ to ‘AJ’, ore was transported to surface along the levels. For levels below ‘Polaris’ ore was transported up the shaft and along ‘Polaris’ to surface.

Recent metallurgical test work has been done by RDI in 2003 and 2004 followed by the current work. In the current work a metallurgical test program was conducted in 2006 & 2007 by Process Research Associates on selected samples from diamond drill core.

The final flotation tails shown is a combination of the rougher/scavenger and the 1st cleaner tailings. The balance is based on the assayed feed grade of the composite tested. The gold grade of the composite sample tested has a lower grade than the composite for the projected mill feed grade of 11.25g Au/t.

There is no gravity circuit as the test work indicated there is little or no gravity gold in the sample tested. The gold bearing concentrate produced by the plant will be shipped off site for further processing.

However, column flotation test work is required to confirm that the higher concentrate grades can be achieved.

The projected gold recovery is similar to the locked cycle test work with the potential of higher recovery if the projected mill feed is greater than 9.7g Au/t. In addition if the sulphur and the antimony grades are lower, then there is the likelihood of higher grade flotation concentrates.