The Moss deposit may be characterized as a brecciated and steeply dipping (average 70°) quartz-calcite vein and stockwork system which extends over a strike length of approximately 1,400 m. It is of the low sulphidation (adulariasericite) epithermal vein type, which is described by Henley & Ellis (1983) and Heald et al. (1987).

The quartz vein textures (massive, breccia, vuggy, bladed quartz replacing calcite, colloform banding and ginguro banding), adularia and the very low sulphide content of the Moss deposit are typical of low sulphidation epithermal veins. Gold is native and silver typically occurs as acanthite or combined with gold in electrum. Copper is present, but in very minor quantities.

The platey or bladed calcite characteristics of the Moss deposit is indicative of the boiling zone of the hydrothermal fluid, which calcite is commonly replaced by quartz. Adularia (a low temperature variety of orthoclase) is also indicative of the boiling zone in which gold is deposited out of solution. No paleosurface or shallow features, such as silica sinters, chalcedony or a steam-heated acid leach cap, are preserved in the Moss deposit. This indicates that the top of the hydrothermal system has been eroded, thereby exposing the gold depositional zone.

Exploitation of the mineral reserves in the Moss vein and adjacent stockworks on the patented lands will be by open pit mining methods with a conventional drill-blast-load-haul mining fleet.

The PEA mine design removes the patented claims boundary constraint by assuming the pit limits can be extended onto the adjacent Federal lands controlled by the BLM. This allows the PEA mine plan to access the mineral resources not available in the Phase II mine plan. Concurrent with expansion of the pit, the mine facilities would also need to be expanded onto the BLM lands. This would include an expanded heap leach pad to accommodate the additional mineralized material, and an expanded waste rock facility to accommodate the additional waste rock.

The most economically effective process has been identified as one that consists of heap leaching of crushed and agglomerated ore, followed by a Merrill Crowe metal recovery plant and refinery to produce gold and silver doré bars on site.

Ore grade material from the open pit will be crushed to 6.35 mm and then agglomerated with cement prior to loading on the heap leach pad in 10m lifts. The crushing circuit will employ three stages of crushing consisting of a primary jaw crusher, a secondary cone crusher, and two tertiary cone crushers. After agglomeration, the fine ore will be conveyed to the leach pad with a series of grasshopper conveyors feeding a radialstacker.

Golder Associates of Tucson, AZ have provided a preliminary layout for a 9 million tonne leach pad located west of, and adjacent to, the current 8.5 million tonne Phase II pad, the construction of which is well advanced. While the Phase II leach pad is located on the patented lands, the PEA leach pad expansion will almost entirely be founded on BLM lands.

The expanded leach pad is based on the same operating parameters as the Phase II leach pad in terms of tonnes stacked daily, solution application rates, and lift heights. The expanded leach pad geotechnical design will be in accordance with Arizona BADCT protocols, and stacking will be accomplished via grasshopper conveyors and a radial stacker. During peak operations, some 45,000 m2 of leach pad area will be under leach.

The expanded leach pad will share some of the Phase II facilities for solution collection and circulation since the solution application rates will be the same. The solutions collected from the PEA leach pad expansion will be pumped over to the Phase II PLS pond.

The PEA leach pad expansion isintended to operate in parallel with the Phase II leach pad so asto allow an increase in leach time for the upper lifts of the Phase II pad. Assuch the intention isto construct the PEA pad expansion well before the Phase II pad is fully loaded, likely as soon as the required permits are approved. This should allow material to be stacked on the PEA leach pad as soon as the end of Year 3.

As documented in the Phase II FS, pregnant solution will be fed to the Merrill Crowe plant over the life-of-mine at a rate of about 450 m3/hr. The precious metals will be precipitated with zinc for filtration and subsequent melting in a furnace. The doré bars will be shipped by armored car service to a precious metals refiner.