The Kwanika Project consists of two mineralized areas: Central Zone and South Zone. In the Central Zone the most economically significant intrusive body is a north-northeast trending monzonite stock that dips shallowly to steeply to the west. The intrusion has a strike length of nearly 1.3km and a thickness of 50m to 350m. The high-grade copper- gold mineralization (>0.6% copper equivalent (CuEq) in the Central Zone is dominantly hosted within, and immediately adjacent to, the monzonite intrusive. Monzonite has also been intersected at depth in the western and southwestern parts of the Central Zone and is thought to connect to the sill-like body in the central part of the deposit, suggesting the possibility of deep Central Zone mineralization.

The South Zone occurs within a fault bounded sequence of strongly altered intrusive rocks of alkalic to intermediate composition. The host lithologies occur within a north-south trending structural corridor. This structural corridor is bounded by the West Fault to the west and by a similar fault zone termed the East Fault along the eastern boundary of the corridor. Coincident chargeability and resistivity anomalies form a geophysical domain that represents the fault- bounded South Zone corridor. This variably mineralized domain is 2,900m long and up to 500m wide.

Copper and gold mineralization in the Central Zone at Kwanika occurs primarily in potassically and albitically altered lithologies. Alteration and minera ........

A production schedule based on a 15,000t/d mill feed rate has been developed for the Kwanika Project. The mine production is based on both Open Pit and underground Block Cave mining methods. The Life of Mine (LoM) plan starts mining two open pit phases in Central Zone while access and level development are established for the Block Cave beneath the open pit in the Central Zone. The final stage of mining is from 3 open pit phases in South Zone.

This is a contractor-operated Open Pit mining fleet and underground development mining fleet with an owner’s fleet planned for underground mucking and hauling. Contractor mining operating costs have been included. Capital costs for the contractor fleets are included in the operating cost. The purchase cost of the underground loaders and trucks are included as a capital expense.

Mining dilution for the open pit is based on whole block dilution from the grade interpolation with 2% additional dilution on ore/waste boundaries. In dilution material, the grade is conservatively set at zero. In future studies and during operations, the dilution will be assigned grades marginally below the cut-off grade at the cut-off boundary.

An allowance for a mining loss of 5% has been used to account for material lost at the ore/waste boundary, misdirected loads, and spillage during hauling.

The pit delineated resources are calculated from the 3DBM within the detailed pit designs using an NSR cut-off of $11.30/to ........

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