The Hushamu and Red Dog Deposits host porphyry copper-gold mineralization similar in grade, and in the case of Hushamu size, to the past producing Island Copper Mine located approximately 30 km to the east. Over the life of the operation, Island Copper produced 345 million metric tonnes of ore with average grades of 0.41% copper, 0.017% molybdenum, 0.19 g/t gold and 1.4 g/t silver (Perelló et al., 1995).

Mineralization identified at Hushamu and Red Dog is best characterized as calcalkalic porphyry deposit type. Calcalkalic porphyry deposits commonly form in sub-circular zones of brecciated and hydrothermally altered rock in and around the apex of a quartz diorite to quartz monzonite stock. The style of mineralization is largely dependent on depth of formation. Deposits developed in relatively high-level, subvolcanic environments are commonly associated with multiple dyke and breccia phases. However, deposits formed at greater depth are more often associated with broad zones of faulting in plutonic rocks (Pantelyev, 1995). The deposits form as concentrations of quartz, quartzsulphide and sulphide veinlets and stockworks and as sulphide disseminations in broad potassic and phyllic alteration zones. They are commonly surrounded by a halo of propylitic alteration. The principal economic minerals are chalcopyrite, molybdenite, lesser bornite and trace gold or electrum. Pyrite is an important constituent, particularly in the propylitic alteration zone.

Five ma ........

The mine plan was developed to mine Red Dog concurrently with Hushamu in the early years of the mine life until Red Dog Resources were depleted. The assumed processing rate is 75,000 t/d. The overall mining rate peaks at 64 million t/a in the initial years, averaging 54 million t/a over the first 12 years of the total mine life of 22 years.

The Hushamu and Red Dog open pits will be conventional truck and shovel operations utilizing 220 tonne class trucks and electric hydraulic front shovels and rotary drills. The bench height at Hushama will be 15 m and at Red Dog it will be 10 m. Road allowances have been made to 34 m width. Single benching has been applied at Hushamu and double benching has been applied at Red Dog. Geotechnical berms of 20 m width have been located on the high wall at Hushamu. Primary crushers will be located adjacent to each pit. Ore will be conveyed to the plant site at Hushamu.

The crest of the pit is at 645 m elevation and the pit bottom is -20 m elevation. The overall high wall slope is 42 degrees. The overall final pit dimensions are 2,300 m in length by 1,275 m in width.

The pit design bottom is at 240 m elevation and the pit crest is at 440 m elevation. Overall dimensions are 780 m length by 470 m width. Access to the pit will be from the east where the primary crusher will be located. This pit will be developed in a single phase.

The Hushamu open pit will be developed in 4 phases. A haulage road will rem ........

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The North Island Copper and Gold Project (the “Project”) will consist of an open pit mine, mineralized material processing facility, and miscellaneous infrastructure and support facilities. The Project is located approximately 27 km west of Port Hardy, British Columbia, Canada, along the north shore of Holberg Inlet in Northern Vancouver Island. Copper, gold and molybdenum mineralized material will be mined.

The Project mineralized material facility will produce copper/gold and molybdenum concentrates. The nominal capacity of the mineralized material processing facility is 75,000 dry metric tonnes per day (dmtpd) or 27,375,000 dry metric tonnes per year (dmtpy). The plant capacity will fluctuate according to the hardness of the mineralized material type being milled, up to a maximum of 84,000 tonnes per day (t/d) when soft mineralized material is being milled.

Sufficient mineralized material is available for approximately 22 years at this production rate. ........