Mineralization at MLP most closely resembles Carlin-type sediment-hosted gold systems of northern Nevada. The Mother Lode deposit model includes structurally and stratigraphically- controlled disseminated sulfide and oxide mineralization hosted in primarily in Tertiary sedimentary rocks and rhyolite porphyry dikes. Paleozoic sedimentary rocks comprise a smaller volume host in proximity to dikes and the basal Tertiary unconformity. Tertiary volcanic rocks and debris flow breccias are also mineralized at Mother Lode. Alteration types associated with gold mineralization include passive decalcification and illite-pyrite alteration. Unique features of Mother Lode-style mineralization compared to typical Carlin-type deposits include: the association with fluorine, the significant volume of mineralization that is rhyolite porphyry dikehosted, elevated tellurium and bismuth, and the generally passive, innocuous, very low-silica nature of the mineralization. Carlin-type gold deposits are generally known to form at depths of >2 kilometres, at temperatures between 180-240o C. Mineralization at Mother lode may have formed at depths of 500-1000 metres or less, and at temperatures <240o C (Weiss, 1996).

Gold mineralization in the main Bullfrog and North Bullfrog sub-districts is characterized as volcanic-hosted low-sulfidation epithermal type. Two styles of epithermal precious metal mineralization are present: 1) disseminated mineralization associated with sulfidation of iron in the volcanic host rocks; and 2) open-space filling quartz and/or carbonate veins, which are controlled by boiling. Pervasive quartz-adularia alteration of volcanic rocks is intimately associated with the disseminated mineralization and is an important ground preparation process for later vein forming events. Epithermal deposits form at shallow depth, from the surface to generally <2 kilometres. Temperatures of formation range between 150 to 300°C. Mineralization at NBP is typical of other low-sulfidation type gold systems in and around the Walker Lane trend such as: Bullfrog, Round Mountain, Rawhide, Aurora, Bodie and Comstock. These deposits commonly contain higher grade gold in vein and stockwork zones surrounded by zones of lower grade disseminated mineralization. This is the accepted exploration model at NBP.

Conventional surface mining methods using surface drill and blast techniques with off highway haul trucks and front-end loaders will be employed at both the Mother Lode open pit and the North Bullfrog open pits. Higher grade mineralization from the YellowJacket vein and vein stockwork, and any Sierra Blanca sulfide mineralization with sufficient grade would be trucked on Highway 95 to a central mill facility located at Mother Lode.

In the conceptual mine plans, 10-metre-high benches would be drilled and blasted, then loaded into 133 tonne haul trucks using 20 cubic metre front end loaders. At NBP, the haul trucks would deliver the mineralized material to either the stockpile transfer system for the mill grade mineralization or place the blasted material directly on the leach pad. The stockpile transfer system would consist of a grizzly, a feeder and conveyor belt feeding bins. Highway haul trucks would be loaded from the bin and transport the mill grade mineralization to the MLP mill stockpiles using Highway 95. Mill grade mineralization from MLP would also be stockpiled at the mill location. Mining rates at both NBP and MLP are sufficient to create a mill stockpile that will allow higher grade mineralization to be fed (grade streaming) to the mill in early years of the schedule. The mill stockpile is scheduled to reach a maximum size of 11.7 M tonnes by the end of year 2, and then begin to decline through the LOM.

The mine plan calls for an average total mining rate of 66 million (“M”) tonnes per year of combined overburden and mineralized material. Of that, an average of 30 M tonnes per year would be mineralized material placed on a heap leach pad at an average rate of 82 k tonnes per day. Another 3 M tonnes per year would be delivered to the mill at an average of 8,200 tonnes per day. The average overburden to mineralized material (strip ratio) would be 1.08. Based on this mining rate, the Project would have an active life of 9 years, with minor gold production for the additional 3-year rinse down period on the leach pad.

The PROJECT Oxide materials will be processed in a standard heap leach recovery circuit commonly used in the region. The cyanide solutions from the heap leach will be treated in a Carbon-in-Columns (“CIC”) gold adsorption and desorption circuit.

The MLP mill will process NBP oxide, NBP sulphide and MLP sulphide materials separately from stockpiles. NBP Oxide material will be processed in a conventional gravity/CIL mill. Sulphide materials from both MLP and NBP will be processed through a milling and flotation plant to produce a concentrate. The flotation concentrate will be thickened, stockpiled, and processed through a pressure oxidation circuit followed by a CIL circuit. Oxide and sulphide CIL tails will be detoxified through an Inco/SO2 type process. Tailings will be pumped to a paste tailings thickener. Slurry will be deposited as a paste in a tailings facility. Detoxified, non-cyanide containing paste thickener overflow solution, will be returned to the mill.
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