The Project consists of a number of mineralized zones that have all the characteristics of volcanogenic massive sulphide (VMS) mineralization. VMS-style mineralization at Scott Lake comprises distinct stratabound massive sulphide lenses located mainly along or close to rhyolite-andesite/basalt contacts. In addition to the massive sulphides, separate zones of VMS style disseminated and stringer sulphides, which may or may not be connected with massive sulphide lenses, have been found over a strike length of at least two kilometres.

The Property is located on the north limb of the Chibougamau Anticline. From south to north, the Property stratigraphy consists of a monoclinal sequence extending from the upper units of the Lake Doré Complex and the Chibougamau Pluton to basalts of the Gilman Formation, with remnants of felsic rocks of the Waconichi Formation caught in between. All units are metamorphosed to the greenschist facies. The Property consists of a number of mineralized zones that have all the features of VMS mineralization. VMS style mineralization at Scott Lake comprises distinct stratabound massive sulphide zones located mainly along or close to rhyolite-andesite/basalt contacts and adjacent stringer sulphide zones within altered rhyolite units.

At Scott Lake, the Waconichi Formation is represented at surface by a 600 m thick dome of quartz-phyric rhyolite that pinches out quickly to the west and seems to disappear more gradually to the east. This original complex flow distribution may have been partly enhanced by
later deformation and the intrusion of the Chibougamau Pluton, however, there is no evidence of strong deformation anywhere on the Property, such as regional foliation or fold axes. An important feature of the property geology is that
there is significantly more rhyolite at depth than indicated by the surface geology. In fact, while rhyolite at surface completely pinches out around section 200W, it can be traced by drilling to the west for at least an additional 1.8 km at depths ranging from 100 m to at least 700 m.

This unit has a highly variable thickness ranging up to 250 m and is characterized chemically by silica in the range of low 60% and titanium content in the range of 0.7% TiO2 to 0.8% TiO2. Except for this dacite unit, the Gilman Formation consists essentially of pillowed to massive basalts and andesites cut by numerous (synvolcanic?) mafic sills. Thin rhyolitic units (local domes?) and sulphiderich cherty horizons have also been cut by drilling within the lower 200 m to 300 m of the Gilman Formation.

The preproduction mine development is carried out by a mining contractor and turned over to the mine crews in year one. Contractor rates were used for the preproduction period while manpower estimates were made for the owner operators commencing in year one of the mine production. Although a shaft scenario was considered, an all ramp system was selected as the most appropriate and the mineralized zones are therefore accessed via a ramp system. The Scott Project will take approximately two to three years of initial development to prepare the mine for production. Mining during the LOM will include 50% mineralized material from Longitudinal LH stopes, 26% from Transverse LH stopes, 11% from Cut and Fill stopes, and 13% from development. The Stringer type mineralization will be mined using the Longitudinal stoping method and thus represents a large portion of the production profile.

A concentrator would have to be built on site and the mill production mirrors the mine production. The mill feed would produce copper and zinc concentrates assumed to be commercially viable.

The work done includes a mineralogical characterization (QEMSCAN), a Davis Tube magnetic test, an oxidation and activation test, 11 batch flotation tests, and a “locked cycle” flotation test. The batch flotation tests were done to determine the response of the mineralization to various grinds and flotation parameters, and to determine the process and flowsheet to be used for the locked cycle test. The locked cycle test was designed to replicate at bench scale, as much as possible, the physical and chemical conditions that would ultimately be used at industrial scale in a concentrator.