The Project hosts two known VMS deposits, the Palmer deposit, which consists of the South Wall and RW Zones, and the newly discovered AG Zone deposit, located three km to the southwest (At the South Wall and RW Zones, six mineralization styles have been identified and are grouped according to dominant mineral assemblages and texture and include: Barite mineralization (Zn-rich), Massive Pyrite Mineralization (Cu-rich), Semi-massive and Stringer-style Mineralization, Massive Pyrrhotite Mineralization, Carbonate Mineralization and Barite-Carbonate Mineralization. At the AG Zone deposit, mineralization consists of Massive and Semi-massive sulfide and barite, and feeder-style stringers and replacement. Four alteration facies are associated with the known mineralized zones and include: Quartz-Pyrite, Muscovite, CarbonateChlorite and Epidote.

The South Wall Zones (SWZI, SWZII-III, SWEMZ) are located on the south-facing, steeply dipping limb of megascopic, deposit-scale anticline, disrupted by recognized thrust faulting, normal faulting and strike-slip faulting. The RW Zones (RW East, RW West, RW Oxide) are located on the north-facing, gently dipping upper limb of the same anticline. The RW Oxide Zone is the near surface equivalent of the RW East Zone where sulfide minerals of massive barite-sulfide mineralization have been oxidized and leached, depleting the zone of copper and zinc and enriching the silver and gold grades. The AG Zone deposit (including the AG Main Lens ........

Mining of the Palmer Project will be conducted using underground mining methods. The potential mine will be accessed using the 680 Exploration Portal which will connect with the Palmer deposit at 845 masl. This ramp will serve as a personnel and material entry point to the mine, the haulage route from the AG Zone deposit to the Palmer deposit, and the primary fresh air source. The transportation of mineralized material from the mine to the mill will take place in the 510 Conveyor Drift.

The Palmer Project hosts two deposits; the Palmer deposit and the AG Zone deposit. The Palmer deposit is segregated into three zones; Lower Zone 2-3, Zone 2-3, and Zone 1. All production levels are referenced to the drift elevation in regard to elevation in metres above sea level (masl). The Lower Zone 2-3 extends from the 848 Level to 628 Level. Zone 2-3 extends from 848 Level to 1128 Level. Zone 1 extends from 1130 to 1330 Level. The AG Zone deposit extends from the 1000 Level to the 1280 Level. Mining of both the Palmer deposit and AG Zone deposit will occur in 20 m vertical increments, and will be connected by a primary spiral ramp, sized at 5.0 m W x 6.0 m H and located in the footwall of the deposit.

Longhole stoping was selected for both zones of the Palmer deposit as the principal mining method. In the planned LH stopes, a top and bottom drift delineates the stope and blast holes are drilled between the two sub-levels via a LH drilling machine. The blast holes a ........

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