The Hasbrouck deposit is a low-sulfidation, epithermal gold–silver deposit located in the western portion of the Divide Mining District. Host rocks are primarily tuffs and sediments of the Siebert Formation with limited mineralization within the underlying Fraction Tuff. Gold and silver mineralization consists principally of 0.1in to 1.0in wide, discontinuous silica-pyrite veinlets, sheeted veinlets and stockworks, all closely associated with larger, but erratic bodies of hydrothermal breccia. Sulfide minerals have been largely oxidized. Mineralization is accompanied by strong pervasive silicification, with associated adularia and pyrite, and has a known extent of 2,800ft east–west by 2,400ft north–south, with a maximum depth of 900ft. Mineralization is open at depth and to a limited extent to the northwest and east.

Gold occurs as electrum, as inclusions in pyrite and in goethite derived from the partial to complete oxidation of pyrite, and within siliceous gangue minerals (Graney, 1985; Hazen, 1989). Silver occurs in the native state and in argentite (Wittkopp, 1982). Silver is also intimately associated with iron oxides derived from the oxidation of silver-rich sulfide minerals that occurred as inclusions in pyrite (Wittkopp, 1982).

Hasbrouck mineralization is primarily characterized as structurally-controlled, with secondary lithologic control. West-northwest and northeast fault orientations localize higher-grade mineralization (+0.05 oz Au/ton) wit ........

The Hasbrouck project PFS includes mining at both the Three Hills Mine and the Hasbrouck Mine. These are planned as open-pit, truck and loader operations. Access roads were included in the pit and waste rock storage area designs, which were considered suitable for the type of equipment used. Waste rock storage areas were designed to contain the rock waste associated with the reserves. One main waste rock storage areas was identified for Three Hills and 2 additional waste rock storage areas were designed for Hasbrouck. Safety berms were designed between the designed pits and dumps and US Highway 50 to contain any material that may try and roll off of the mining site.

Three Hills production schedules have been completed based on a 15,000tpd production requirement for the ROM heap-leach pad. In total, 504,000 cubic yards (702,000 tons) of waste rock is scheduled for construction purposes.

Hasbrouck Mine production schedules were completed based on a 17,500tpd production requirement. Mining at Hasbrouck was assumed to start during the second year of production for the project. Little pre-stripping is required as ore is located near the surface, though waste rock is mined early to provide construction fill material.

It is anticipated that the contractor will have between 60 and 80 operators and staff involved with the operation. It has been assumed that the contractor will work 12 hour shifts, 2 shifts per day, 7 days per week. Other mine ........

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Water Supply
No potable water supply will be installed at Three Hills Mine, potable water being obtained from the Tonopah water system. A potable water system will be installed at Hasbrouck Mine. This requires obtaining a water right to appropriate groundwater. Water rights have been applied for in 2014 and are currently under review by the state engineer.

Raw water is defined in this report as all water required by the project. It includes water for construction purposes, make-up water for mineral processing, water for dust control on mine roads and ore processing, and other sundry non-potable uses. Raw water is not required to meet potable water standards. The average rate of raw water that will be required at each mine is 500
gpm.

Water for the project is planned to be obtained from groundwater wells near each mine. For the Three Hills Mine, the water supply well will be located approximately 3,700ft north of the process facilities. For the Hasbrouck Mine, the water supply well will be located approximately 7,500ft west of the process facilities. Submersible pumps will be installed at a depth of 1,000ft in each well. Preliminary analysis of the existing water rights and groundwater conditions indicate that these wells can meet the project’s raw water requirements. Water rights for the Three Hills well have been applied for in 2014 and are currently under review by the state engineer.

Water Distribution
At both mines HDPE pipelines will be used to convey the required water from the supply wells to 500,000 gallon water storage tanks. At the Three Hills Mine, the water storage tank will be located adjacent to the process facilities. Due to the limited elevation difference between the tank and the facilities, pumps are required to boost pressure and provide adequate flow. At the Hasbrouck Mine, the water storage tank will be located east of the crusher facility. The location of the Hasbrouck tank will provide adequate pressure for the system and booster pumps will not be required.

The chosen route for the water pipeline from the water supply well to the Three Hills Mine will require the consent of a landowner whose land it will cross. Should the landowner in question decline permission, a slightly longer route exclusively on WKM-owned property will be used.

The water pipeline route between the water supply well and the Hasbrouck Mine will be on public land and approval for the well and pipeline installation will be obtained as part of the approval to construct the Hasbrouck Mine required under the National Environmental Protection Act.