The white smoker deposit model is proposed for the Nash Creek deposit, in contract to a traditional black smoker deposit. These deposits types are described below.

Sulphide mineralization at Nash Creek includes pyrite, sphalerite, galena and minor chalcopyrite. Silver consistently accompanies the sulphides, possibly the result of argentiferous galena or presence of a silver rich sulphosalt. Sulphide concentrations of potential economic interest occur as: 1) stratabound and/or laterally continuous zones of matrix filling or replacement style mineralization within coarse to fine grained pyroclastic deposits of both mafic and felsic affinity; 2) fracture filling, stringer or vein arrays mainly within competent flow units or flow breccia; and 3) discrete breccia zones (e.g., flow breccia, autobrecciation, etc.). Strong intraclast chlorite mineralization is associated with concentrations of zinc and lead in the brecciated mafic rocks.

Moderate to intense clay alteration and silicification are common in the mineralized zones and broader zones of strong carbonate, hematite and potassium alteration occur in footwall, and occasionally hangingwall, to mineralized host rocks. Mineralization occurs as multiple stacked zones of laterally extensive pyroclastic units and flow top rubble zones which are cross cut locally by north, northeast and northwest trending structures that may have acted as pathways for mineralized hydrothermal fluids (Cullen and Barr, 2005). ........

The PEA proposes a conventional truck and shovel open pit mining operation with leased-to-own equipment, to extract the potentially economic Mineral Resources at the Nash Creek and Superjack Properties.

The mine plan for the Nash Creek Property has an approximate ten-year production life with total on-site DMS process plant capacity of approximately 1.4 Mt per year.

Initial mining activities will be carried out at the Superjack Property, located approximately 45 km by road southwest of Bathurst.

P&E examined the Mineral Resource block model developed for the Nash Creek and Superjack Properties and developed a series of optimized incremental pit shells for a selection of various zinc equivalent cut-off grades. The optimization analysis included Indicated and Inferred Mineral Resources. For pit optimization, a base case ZnEq cut-off grade of 1.50% for Nash Creek and 2.00% for Superjack was used along with an inter-ramp pit slope of 50°. The Mineral Resources were compared in terms of the total value potentially produced and the related waste/overburden stripping ratios. Of special interest was the rate of increase (or decrease) of certain factors in these comparable pit shells, as the open pit shells were excavated deeper.

Two large pits (Hickey North and Hayes) and one smaller pit (Hickey South) are expected to be developed at Nash Creek and one small, moderate sized pit at Superjack. The proposed open pits will utilize convention ........

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