North Deposit
The North Deposit of mineralization is located 1,500 ft north of the South Deposit and is centered on a subhorizontal, pipe-like, copper- rich, magnetite-poor skarn and skarn breccia body hosted by hornfels of the Gardnerville Formation (Northwest Deposit). The higher grade mineralization in the skarn breccia grades into a zone of lower copper grade mineralization hosted by granodiorite endoskarn and marble (North Deposit).

The combined Deposit has a 3,500 ft strike length, with true widths of 200 to 900 ft, and a down-dip extent of 1,500 ft and remains open in several directions. Retrograde alteration and sulfide deposition in the North Deposit was focused along fractures at angles to bedding and overprints earlier prograde alteration. Retrograde alteration and mineralization along fractures diminishes away from the breccia core. Chalcopyrite tends to be the last sulfide phase deposited.

South Deposit
The South Deposit, the first discovery on the Property, is a skarn-IOCG magnetite-chalcopyrite body closely associated with an intrusive contact of granodiorite into limestones of the Mason Valley Formation. The deposit is roughly tabular, measuring 3,600 ft along strike, 1,800 ft down- dip, trends northeast, and dips steeply to the northwest. The mineralized section, as defined by USS, can be divided into two zones: a footwall or proximal zone consisting of a 400 to over 1,000 ft thick relatively high grade magnetite with low copper content and a hanging wall or distal zone consisting of a 100 to 800 ft thick low grade iron but with higher copper content.

Southeast Deposit
The Southeast Deposit, located 2,000 ft southeast of the South Deposit, is a 300 ft wide skarn-IOCG lens of chalcopyrite-magnetite-garnet-actinolite developed within limestones of the Mason Valley Formation. The zone is unique for the Pumpkin Hollow Property due to its elevated magnetite grades (locally up to 75%). The zone of mineralization strikes northeast and dips steeply northwest with a strike length of 1,500 ft. Magnetite-garnet-epidote skarn hosts the mineralization with chalcopyrite increasing toward the footwall marble front. The Southeast Deposit has a 600 ft vertical extent and is fault bounded, above and below, by low-angle normal faults.

Geologic similarities between the Southeast and South Deposits strongly suggest that the Southeast Deposit may be the upper portion of the South Deposit which has been displaced 2,000 ft to the southeast along the lower listric fault.

The Open Pit Project is currently designed as a 37,000 stpd operation, expanding in Phase II to a 70,000 stpd operation, The Open Pit Project has two mining areas, the North Pit and the South Pit.

Open pit mining will commence mining with the North Pit, which possesses higher grade followed by the lower grade, South Pit. Four phases were designed for the North Pit and two phases were designed for the South Pit. Ore from the pits will be hauled to a primary crusher, or to the stockpile, located to the west of the pits. Waste will be hauled to the waste rock storage facility (WRSF), which was designed to accommodate waste from both the North Pit and South Pit. Once the North Pit is exhausted, South Pit waste is used to backfill the North Pit.

The stand-alone process plant for the Open Pit Project is designed in two phases: Phase I and Phase II. Phase I is designed as a 37,000 stpd throughput concentrator, from run of mine (ROM) crushing through to filtered concentrate and tailings. Phase II expands the capacity to 70,000 stpd, which involves the addition of a coarse ore stockpile and process circuit of milling and flotation through to unfiltered concentrate and filtered tailings. The additional throughput of concentrate in Phase II will be filtered using Phase I’s concentrate thickening and filtration equipment. The single process facility (SPF) and the unit operations therein are designed to produce a marketable concentrate targeted at 25.5% Cu or greater.

Based on historical test work on the North and South Deposits, estimated average copper recovery is 89.5% in the flotation circuit. The estimated gold and silver recoveries were 67.3% and 56.3% respectively, for the ore from both the North and South open pits. ........