Gold mineralization occurs in a series of quartz and quartz-carbonate veins which are interpreted from the drilling as being steeply dipping and east-west striking, roughly parallel to the Porcupine-Destor Fault Zone (PDFZ). The veins, while appearing to be consistent in orientation from section to section are observed in the drill core to occur in a wide variety of orientations. It is highly likely that many of these veins are not tabular, but irregular in shape, similar to others observed in the gold deposits of the Timmins area.

The quartz veins occur most often in the mafic volcanic rocks, usually in proximity to porphyry intrusions. There is a persistent zone of quartz veining associated with the sedimentary-volcanic contact, and there are some wide vein intercepts to the south of the contact, but these tend to be weakly mineralized.

The mineralization at Clavos is located within an envelope of highly altered ultramafic flow and volcanic clastic fragmental rock referred to as the DL zone. The DL zone, which lies approximately 10m north of the sedimentary-volcanic contact, varies in thickness from 30m to 60m, is cored by several semi-concordant, east-west trending, steeply dipping and shallow eastplunging feldspar porphyry bodies of up to 20m in thickness. The shallow easterly plunge is regional in character and is overprinted by local structures.

There are six gold-bearing mineralized zones inwhich mineral resources have been estimated at ........

The stope mining methods proposed in this PEA for the Clavos JV project are cut & fill stoping and bulk long hole stoping with pillars for the most part located in waste material. These stoping methods are common in mining, and are considered to be inherently safe methods of mineralized material extraction.

Cut & Fill Stoping:

- Selected as being safe while allowing a high percentage of mineralized material extraction with selective extraction methods possible

- Highly flexible permitting selective mining to be performed through alternate production faces within a single mining area

- Most efficient should the mineralized material grade or configuration of the mineralized structure be variable

- With two or more cut & fill stoping complexes in close proximity with each other, the same stope mining gear can be employed by traversing a connecting sub drift

- Could utilize steel mill holes and galvanized man ways in conjunction with cemented fill floors

- Could make use of hand held pneumatic drilling machines

- Mucking could utilize 1.25 mechanically driven diesel scoop trams and/or Cavo type muckers.

Bulk Long Hole Stoping:

- Allows utilization of similar equipment throughout the mine workings

- Incorporates longitudinal retreat stoping methods

- Utilizes 2 ½” to 3” diameter holes drilled from a pneumatic drill wagon

- Utilizes 3.5 yd. ........

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