The interpreted regional geology encompassing the Golden Chest gold property is favourable for the occurrence of epigenetic gold deposits which are spatially associated with secondary structures within or in close proximity to major regionally extensive structures. Epigenetic gold mineralization can be subdivided into epithermal and mesothermal styles, although both styles are structurally controlled.

The majority of the discoveries in the Idaho gold district, including the Golden Chest property, are mesothermal style. Mesothermal gold types can be differentiated into three sub-classes as follows:

(i) Auriferous quartz veins where gold occurs within extensional or shear fracture veins, often associated with pyrite or arsenopyrite.

(ii) Altered wall rock (+quartz veins) where gold occurs mainly within the deformed and altered wall rock adjacent to the quartz veins.

(iii) Disseminated gold associated with pervasive silicification and disseminated sulphides.

The gold occurrences at the Golden Chest property are classified as structurally controlled mesothermal auriferous quartz vein type belonging to sub-class (i) above. The veins may also contain scheelite, tungstite, pyrrhotite, galena, chalcopyrite, sphalerite bornite and a telluride phase.

The Golden Chest property is located on the west limb of the Trout Creek anticline, a major north- trending fold in the Prichard formation. The property is characterized by gold and tungsten mineralization related to a thrust fault known as the Idaho fault which occurs at the contact of Prichard Formation units G and H. Unit G, a quartzitic unit, is the host for most of the veins while the overlying Unit H is an argillite-siltite sequence of rocks. Near the fault, Unit H has also been found to host narrow, high-grade vein structures.

Auriferous quartz veins occur within extensional and/or shear fracture systems, often associated with pyrite. Micon observed two vein styles during a tour of underground workings in level 3 of the Golden Chest mine. Banded veins are prevalent in argillite while massive veins are dominant in quartzite.

In the southern part of the underground workings gold mineralization is found near and parallel to the north-trending Idaho fault while the northern part of the mine hosts the higher grade Katie and Dora veins which splay off the Idaho fault in a northeasterly direction. Gold mineralization can be found along at least 1,500 m of strike length along the Idaho fault. The lowest level of the Golden Chest mine, the No. 3 level, is about 30 above the valley floor, and drilling has only probed the Idaho vein about 120 m below this level in a district known for hosting mineralization that outcrops at surface and continues to depth up to 2,500 m.

Golden Chest includes both open-pit and underground operations. Current gold production is ongoing from its open-pit, with plans to commence underground operations in November 2017.

Open-pit operations are generating cash flow as preparations for underground mining continue.

The gravity circuit is comprised of a vibrating screen and a Knelson Concentrator and will be used to process a portion of the recirculating load in the grinding circuit where gold particles tend to accumulate. The gravity circuit operated smoothly, producing a gold concentrate that was further upgraded on a Deister Table.

In addition to commissioning the new gravity circuit, the Company also conducted a small milling campaign to tune up the crushing, grinding, flotation, and tailings circuits.

Once at full production of approximately 360 tonnes of ore per day, the mine is expected to feed the New Jersey Mill at a steady state throughout 2015 and into 2016.

First 20–tonnes of gold concentrate shipped in January, 2017.