The Goldex deposit is a large, relatively low-grade body defined by the intensity of stockwork veins and gold grades rather than by individual veins. Most of the gold at Goldex occurs as microscopic particles associated with pyrite, while the rest is in the form of coarse native gold grains of up to a few millimetres in size. There are several zones of gold mineralization with isolated ore-grade intercepts over mineable widths on the property, and all of them except the South Zone are hosted by the Goldex Granodiorite.

While the main concentration of gold mineralization is the GEZ zone, which extends from 500 metres to 800 metres below surface, we are now aggressively exploring the D Zone, which is located about 150 metres below GEZ. Although not yet fully defined, the D zone is very similar to GEZ in geology, style of mineralization and, potentially, in size.

The M zone extends from 200 to about 370 metres below surface and dips steeply to the north, with gold-bearing quartz-tourmaline-pyrite veins and veinlets similar to the GEZ. The E zone extends from approximately 700 to 850 metres below surface, just east of the GEZ. The E zone contains relatively fewer quartz-tourmaline-pyrite veins and veinlets than the GEZ.

The surface facilities at Goldex include a head frame, a hoist room, an ore storage facility, a processing plant, a paste backfill plant and a surface building containing a mechanical shop, a warehouse and an office. In addition, the Goldex property has a 790-metre deep shaft (Shaft #1), which historically was used to provide access to underground workings. Shaft #1 is now predominantly used for getting material into the mine and serves as an emergency exit from the mine.

The Company mines the M and E Zones using primary and secondary stope methods. Drilling is carried out with ITH drills. Production holes are either 4.5 or 6.5 inches in diameter. Bulk emulsion is used as the primary explosive for stope blasting. For both zones, stopes are approximately 55 metres high. The width and length of individual stopes vary based on local rock mass quality, but an average stope is expected to range between 60,000 and 100,000 tonnes. Ore handling in the M Zone is done with 15 yard load-haul-dump machines. This equipment unloads into an ore pass accessible from each level. In the E Zone, located below the bottom of Shaft #2, ore handling is done with 15 yard load-haul-dump machines and 45 tonne trucks.

All stopes are supported with 15 metre cable bolts. In addition, the stability of each stope is remotely monitored in real time. The Company also uses paste backfill to allow for a high extraction ratio and to increase long term stability.

The Goldex processing facility starts with a two-stage crushing process, followed by a two-stage grinding circuit that comprises a semi-autogenous grinding (SAG) mill and a ball mill. The grinding target is to reduce 80% of the ore to a diameter of 140 microns or less. Most of the ground ore is fed to the gravity circuit that recovers about two-thirds of the gold, which is then smelted on site to form doré bars. Flotation recovers the rest of the gold, producing a gold-bearing pyrite concentrate.

Half of the flotation tails go to the new paste backfill plant, where they are mixed with Portland cement GU to form a paste at 77% solids. This paste is pumped underground to fill and solidify in stopes once they have been mined out. The rest of the flotation tails are being used to complete the rehabilitation of the historic Manitou mine site, 22 kilometres away, in partnership with the Quebec Government.

The pyrite concentrate is thickened and trucked to the LaRonde complex, where it is fed to a dedicated cyanide leach circuit. Gold-bearing leachate from Goldex ore joins the stream of leachate from Lapa ore and is fed directly into the carbon-in-pulp circuit to recover precious metals, which are smelted into doré bars. The pyrite concentrate tails from Goldex are disposed of with the LaRonde tails.