The Property hosts two stratigraphically controlled mineral deposits. The two deposits, Taylor Deposit (Taylor Sulphide and Taylor Deeps) and the Central Deposit.

Mineralization has been subdivided in to two mineral-types, sulphide (CRD, Skarn and vein) and oxide (Manto). The Taylor Deposit sulphide CRD mineralization is developed within two domains. The upper mineralized domain consists of the Concha Formation, Scherrer Formation and Epitaph Formation of the Paleozoic sequence around the patented Alta claim block. Continuity of CRD mineralization in the Paleozoic-age carbonate formations extends for 2,500 ft (762 m) along strike (Northwest 310°) and 1,500 ft (457 m) laterally (Northeast 40°) beneath the Northwest edge of the Hardshell claim extending across the entire Alta claim to the Southeast edge of the Trench claim block. Thickness of mineralization varies depending on the stratigraphic horizon. The average thickness of mineralization, on the basis of drillhole intercepts, for each stratigraphic host is: Concha – 200 ft (61 m), Scherrer – 60 ft (18 m) and Epitaph 300 ft (91 m). The lower domain of mineralization is characterized by calc-silicate mineralogy and occurs between contact of the Older Volcanics and Paleozoic sediments at a depth of 3,400 ft (1,036 m) below the surface. The average thickness of mineralization in this zone is 75 ft (23 m) and extends for 2,600 ft (790 m) from the southeast edge of the Alta claim towards the center of the Trench claim (Northwest 310°). Laterally (Northeast 40°), the mineralization extends 1,500 ft (457 m).

Sulphide mineralization in the Taylor Deposit also occurs as calc-silicate skarn type mineralization that contains patches and massive, wholesale replacements of carbonate by very-fine-grained, massive, wollastonite-diopside and rhodonite, generally white to pink, very-fine-grained to aphanitic, hard and massive. Significant, sparse zones with coarse-grained, radiating crystal aggregates up to 2 cm and common coarse-grained, euhedral-subhedral galena, sphalerite, chalcopyrite and pyrite are present. Massive replacements of carbonate by galena, sphalerite, chalcopyrite and pyrite are not uncommon, up to 20 ft (6 m) thick. Light green, massive, coarse-grained garnet with abundant sulphides as disseminations, pods, masses and interstitial replacements are sparsely noted, deep within the Epitaph Formation and is directly related to intrusive dikes and sills. This style of sulphide mineralization is not as common but is present.

Vein-hosted sulphide mineralization occurs in northwest trending structural zones (Northwest 310°) and is interpreted as being high-angle (75° - 85° to the core axis) and dipping to the northeast. Vein thicknesses vary from 1.5 ft (0.5 m) up to 6 ft (2 m) and can occur as single veins or vein zones up to 20 ft (6 m) thick with a strike length of 5,000 ft (1,524 m). The veins are comprised of white, massive quartz with open-space, growthzoned quartz crystals and contain coarse grained sulphides (pyrite, galena and sphalerite). Quartz–sulphide veins have been noted in all stratigraphic formations on the Property and are believed to be related to CRD mineralization in the Paleozoic sequence, “Hardshell Zone” and the veins exploited by ASARCO in the Meadow Valley Andesite on the Trench Claims.

The Central Deposit is comprised of oxide mineralization-type (Manto). The oxidized rhyolites overlying the mantostyle mineralization and the carbonate units contain irregular patches and zones of veinlet-controlled hematitelimonite and sooty Mn-oxide with accessory silver mineralization. Manto-style mineralization in rocks of rhyolitic composition is dominated by black, sooty cryptomelane, with or without yellowish orange secondary lead-oxides and with quartz-dominant gangue mineralogy. Manto-style mineralization in carbonate rocks does not typically contain lead-oxides. Strong, pervasive gray, silicification is also present and calcite occurs as veinlets, vugs and fracture fillings. Drill core intercepts containing rhodochrosite and pink calcite are not uncommon and rarer intercepts of hard pinkish rhodonite-bustamite have also been noted.

Call & Nicholas, Inc. (CNI) undertook the preliminary geotechnical study for the underground works on the Project. The recommended mining method is sub-level open stoping (SLOS). Mining will take place initially from the primary stopes followed by secondary stopes. The recommended maximum stope dimensions for mining parallel to strike in the Concha are 148 ft H by 69 ft L by 50 ft W (45 m H by 21 m L by 15 m W) and in the Epitaph are 100 ft H by 45 ft L and 50 ft W (30 m H by 14 m L by 15 m W). While CNI recognize a third rock type, the Scherrer, is rich in mineralization and is planned for mining, it was not separated as a distinct geotechnical domain. Any mining that occurs within the Scherrer should follow the criteria of the Epitaph rock type.

Stope dimensions were optimized for height, rather than length. In both domains, because of the geologic joint fabric, mining perpendicular to the strike of the deposit allows for greater achievable dimensions. Analyses were limited to a depth of 4000 feet (1,219 m).

The project processing facility is designed to treat 10,000 tpd of lead, zinc and silver material at an operational availability of 92%. The processing flow sheet for the project is a standard flow sheet that is commonly used in the mining industry, including conventional flotation recovery methods typical for lead-zinc material.

Run-of-mine (ROM) material will be crushed in a primary jaw crusher that is located adjacent to the underground mine portal. From there it will be conveyed to the processing facilities where it will be ground to 80 percent finer than 105 microns in a semi-autogenous grinding (SAG) and ball milling circuit.

The mineralized material is further processed in a flotation circuit consisting of lead flotation followed by zinc flotation. The majority of the silver will be recovered in the lead flotation circuit and some silver will also be collected in the zinc flotation circuit.

Lead sulfide will be recovered in a rougher flotation bank, producing a concentrate that will be upgraded to smelter specifications in three stages of cleaning. Tails from the lead flotation section will then be conditioned for zinc sulfide flotation. The process scheme for zinc flotation also includes a rougher bank and two stages of cleaning to produce smelter-grade zinc concentrates. For both lead and zinc sections, the rougher flotation concentrates will be reground to 80 percent finer than 38 microns prior to cleaner flotation to liberate the sulfides for further upgrading.

Tailings from the flotation circuit will be thickened, filtered and conveyed to a splitter at the plant. From there, normally 55% of the filtered tailings will be conveyed to tailing storage facility and the remainder will be disposed of as backfill into the underground mine.

Lead and zinc concentrates will be thickened, filtered, and discharged to a covered stockpile. They will then be reclaimed by front-end loader onto highway haulage trucks for ocean shipment to smelters.