The mineralization at the Arctic Deposit and at several other known occurrences within the Ambler Sequence stratigraphy of the Ambler District, consists of Devonian age, polymetallic (zinc-copper-lead-silver-gold) VMS-like occurrences.

In the Ambler District, VMS-like mineralization occurs in the Ambler Sequence schists over a strike length of approximately 110 km. These deposits are hosted in volcaniclastic, siliciclastic and calcareous metasedimentary rocks interlayered with mafic and felsic metavolcanic rocks. Sulphide mineralization occurs above the mafic metavolcanic rocks but below the Button schist, a distinctive district wide felsic unit characterized by large albite porphyroblasts after relic phenocrysts. The presence of the mafic and felsic metavolcanic units is used as evidence to suggest formation in a riftrelated environment, possibly proximal to a continental margin.

A sulphide-smoker occurrence has been tentatively identified near Dead Creek northwest of the Arctic Deposit and suggests local hydrothermal venting during deposition. However, the lack of stockworks and stringer type mineralization at the Arctic Deposit suggest that the deposit may not be a proximal vent type VMS. Although the deposit is stratiform in nature, it exhibits characteristics and textures common to replacement-style mineralization. At least some of the mineralization may have formed as a diagenetic replacement.

At Arctic, sulphides occur as semi-massive ........

The Arctic Project is designed as a conventional truck–shovel operation assuming 144 t trucks, and 15 m³ shovels. The pit design includes three nested phases to balance stripping requirements while satisfying the concentrator requirements.

The design parameters include a ramp width of 28.5 m, maximum road grades of 10%, bench height of 5 m, targeted mining width of between 70 and 100 m, berm interval variable by sector, variable slope angles by sector and a minimum mining width of 30 m.

The smoothed final pit design contains approximately 43.4 Mt of ore and 298.3 Mt of waste for a resulting stripping ratio of 6.9:1.

The production schedule includes the processing ramp up. The processing plant ramp-up considers the normal inefficiencies related to the start of operations, and includes the tonnage processed as well as the associated recoveries, which increase the design capacity during the second quarter of operation. The mine requires two years of pre-production before the start of operations in the processing plant. However, the mine will start operations in Year -3 to produce material to be used on the site construction.

The deposit will be mined in three nested phases, including the ultimate pit limit. The scheduling constraints set the maximum mining capacity at 36 Mt per year and the maximum number of benches mined per year at 10 in each phase.

The mine is scheduled to operate 24 hours a day, seven days a week using ........

- subscription is required.

A 10,000 t/d process plant was designed to process the massive and semi-massive sulphide mineralization. The process plant will operate two shifts per day, 365 d/a with an overall plant availability of 92%. The process plant will produce three concentrates: 1) copper concentrate, 2) zinc concentrate, and 3)lead concentrate. Gold and silver are expected to be payable at a smelter; silver is expected to be payable in the copper and lead concentrates, with gold expected to be payable in the lead concentrate only. The process plant feed will be supplied from the proposed Arctic open pit mine.

The mineralization will contain significant levels of talc and will first undergo talc pre-flotation to remove the talc prior to traditional base metal flotation for production of copper, zinc, and lead concentrates. The process plant final tailings will be pumped to the TMF. Copper, zinc, and lead concentrates will be thickened and pressure-filtered before being transported off site and sh ........