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 and AG Footwall Zone) is located three km m to the southwest, on a steep Nunatak between the Saksaia and South Saksaia Glaciers.

Drilling to date has defined a total plunge length of near-continuous South Wall mineralization of 700 m, and a total strike length to 550 m, with exhalative mineralization occurring at more than one stratigraphic level. The RW Zones have been defined over a dip length of 325 m, and a total strike length of 800 m. The new AG Zone deposit has a strike length of 550 m and a vertical extent of 250 m. Reconstruction of the primary depositional environment of the Palmer Deposit (via unfolding and restoration of post-mineralization fault offset) yields a single continuous mineralized system that is over 1.5 km in length. The known zones are open to expansion in multiple directions, and most notably, the thickest mineralized intersection is located at the lower limit of the South Wall drilling done to date.

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, Carbonate-Chlorite 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 and AG Footwall Zone) is located three km m to the southwest, on a steep Nunatak between the Saksaia and South Saksaia Glaciers.

Drilling to date has defined a total plunge length of near-continuous South Wall mineralization of 700 m, and a total strike length to 550 m, with exhalative mineralization occurring at more than one stratigraphic level. The RW Zones have been defined over a dip length of 325 m, and a total strike length of 800 m. The new AG Zone deposit has a strike length of 550 m and a vertical extent of 250 m. Reconstruction of the primary depositional environment of the Palmer Deposit (via unfolding and restoration of post-mineralization fault offset) yields a single continuous mineralized system that is over 1.5 km in length. The known zones are open to expansion in multiple directions, and most notably, the thickest mineralized intersection is located at the lower limit of the South Wall drilling done to date.

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 are loaded with explosives and the stope is blasted. The blasted material is extracted from the bottom drift by conventional and remote mucking with LHDs. Several variations of LH stoping will be applied at Palmer, specific to the geotechnical and geometric properties of the resource zones.

Transverse Longhole
Where ground conditions are good and the resource average thickness is greater than 8 m but less than 20 m) as is the case with Zone 1 and 2-3 from the Palmer deposit and the SW zone of AG, transverse LH stoping will be used. Transverse LH stopes are mined in a primary/secondary fashion whereby primary stopes are mined and filled with a cemented paste backfill. Transverse LH stoping requires a footwall access to be driven parallel to the resource to provide cross-cut entries evenly spaced along strike. As such, this method requires more non-mineralized development than longitudinal LH stoping but offers higher productivity and selectivity given the ability to mine several high grade stopes at once.

Longitudinal Longhole
Where ground conditions are less favourable and the resource width is less than 8 m, longitudinal LH retreat (LHR) will be used. LHR mining is a variation on sub-level LH stoping where the long axis of the stope is along strike of the mineralized zone. LHR stopes are mined, retreating from the outside-in towards the level access. As LHR stopes are mined, they are simultaneously backfilled. Disadvantages to LHR mining include higher backfill dilution, lower mineral recovery, and limited selectivity and productivity. Advantages include less non-mineralized development.

The mine production rate is approximately 3,400 t/d once full production is established in year 3. The mineralized material will be crushed underground and transported via the 510 Conveyor Drift to the mill. Mineralized material from the Palmer deposit will be fed into the conveyors via the production pass system; the AG Zone deposit material will be hauled to the production pass in the Palmer deposit.

Once a mining panel has been exhausted, the void will be backfilled with a cemented paste backfill composed of pyrite tails, de-sulfide tails and run of mine waste rock that is potentially acid generating (PAG). Paste backfill originating from pyrite tails will be prioritized for primary stopes. Paste for secondary stopes will be composed of the remaining pyrite tails and supplement with de-sulfide tails. Run of mine PAG will be deposed in any available open void. The remaining de-sulfide tails will be filtered and placed at the tailings storage facility (TSF).

Non-potentially acid generating (NPAG) rock generated from the mine will be used in the construction of site infrastructure and the TSF.

The ground support recommended for each type of permanent and temporary/ore development include:

• Permanent Development (5 m W x 5 H):
- 2.4 m long #7 resin bolts on 1.5 m ring spacing and 1.5 m within the ring with 6-gauge welded wire mesh in back to within 1.5 m of floor;
- Assume 15 % of the all permanent development intersections will require 5 cm of shotcrete in addition to bolting;
- Assume 20 % of the all permanent development in the AG Zone deposit will require 5 cm of shotcrete in addition to bolting.

• Temporary / Stope Development (5 m W x 5 H):
- 2.4 m long, 39 mm split sets on 1.5 m ring spacing and 1.5 m within the ring with 6-gauge welded wire mesh in back to within 1.5 m of floor;
- No shotcrete required in temporary/ore development.

The Mine will have three points of access. The 680 Exploration Portal will grant access for haulage and secondary equipment. A cross-cut near the portal entry will be blasted for installation of the main fans and heater for fresh air feed. The 510 Conveyor Drift will be used strictly for the transport of mineralized material out of the mine and secondary egress for the Palmer deposit. The AG 1000 Ramp will be used for secondary egress.

The portal laydown for the 680 Exploration Portal and 510 Conveyor Drift have been designed with a rock slope of 4:1 vertical:horizontal (V:H) with a 5 m catch bench in 10 m vertical intervals. Due to the relatively steep terrain, rock fill slopes have been set to 1:1.25 V:H. The 1000 Level Ramp is located on flat terrain, no major excavation will be required.

The 680 Exploration Portal will be driven to the 848 Level in Palmer deposit, a linear distance of 1,600 m. It will be driven with an arched profile at 5.0 m W x 5.0 m H, sized to accommodate the necessary ventilation ducting, services and mobile equipment. The ramp will be used for haulage between the AG Zone deposit and the Palmer deposit. It will also act as a fresh air feed into the mine, with the primary fan and heater located at the portal. Pull outs have been designed every 100 m and the ramp has been designed at a maximum gradient of 15%.

Each working level of the mine will be connected using a 6.0 m W x 5.0 m H spiral ramp located in the footwall of the deposit. The spiral ramp will provide fresh air and will connect all levels of the mine, from 628 masl to 1330 masl. Access to the production pass is at every other level, the spiral ramp will be used for haulage of waste and mineralized material to the production pass. The ramp has been designed at gradients of 12-15% to accommodate the relatively close level spacing of 20 m with a minimum turning radius of 20 m on centre.

Each mining level will have a 6.0 m W x 5.0 m H footwall drive to allow haul trucks and production LHD’s to access the stoping cross-cuts. The profile of these will also be arched and shall be located at a minimum offset of 10 m from the deposit in the footwall. Stope sill drifts will be driven at 5.0 m W x 5.0 m H with a flat back to accommodate remote LHD entry. The sill drift will be spaced in 16 m intervals along the footwall drift and driven through the deposit to the hanging wall. The footwall drives will house the majority of services including remuck bays, ancillary bays, ventilation raise access, and production pass access. The stope sill drifts will be driven for LH drilling, mineral extraction and backfill placement. The footwall drift will also contain the electrical sub-stations and a refuge bays, the locations will vary based on current mining activities.

Crushing
The crushing plant will be located underground and will include a 30” x 42” jaw crusher with an installed power of 110 kW. The jaw crusher will process 194 t/h and with a closed side setting (CSS) of 125 mm will produce a final product P80 of approximately 110 mm.

Grinding
The grinding circuit will consist of a SAG mill followed by a secondary ball mill. The primary SAG mill will operate in open circuit, while the secondary ball mill will operate in reverse closed circuit with a cluster of hydrocyclones. The grinding circuit has been designed to process a nominal throughput of 159 t/h (fresh feed) and produce a final product P80 of 72 µm.

Product from the crushing circuit will be conveyed from a storage bin to a 4.9 m diameter by 2.7 m long SAG mill with an installed power of 895 kW motor. A belt-scale on the feed conveyor will monitor the feed rate. Water will be added to the SAG mill to maintain the slurry charge in the mill at a constant density of 70%. Slurry will overflow from the SAG mill at a transfer size (T80) of approximately 800 µm will flow into the cyclone feed pump box.

Product from the SAG mill screen discharge will combine with the ball mill discharge before being pumped up to a cluster of hydrocyclones for size classification. The coarse underflow will flow by gravity to the secondary ball mill, 3.4 m diameter by 5.5 m long ball mill with an installed power of 1,119 kW, for additional grinding. The fine cyclone overflow, at a final product P80 of 72 µm, will report to the Cu Conditioning Tank. The hydrocyclones have been designed for a 300% circulating load.

Material from the mine will feed a single-stage crushing plant located underground. The crushed product will be conveyed from underground to feed the process plant at a rate of 3,500 t/d producing saleable Cu, Zn and Ba concentrates.

The processing facilities will consist of the following unit operations:

• Jaw Crusher – A vibrating grizzly feeder and jaw crusher in open circuit, producing an estimated final product P80 of 110 mm;

• Primary Grinding – A SAG mill in open circuit, producing a T80 transfer size of approximately 800 µm;

• Secondary Grinding – A ball mill in reverse closed circuit with a cluster of hydrocyclones, producing a final target product size P80 of 72 µm;

• Cu Flotation – Rougher and cleaner flotation to produce a saleable Cu concentrate;

• Cu Rougher Concentrate Regrind – A ball regrind mill in closed circuit, reducing Cu rougher concentrate to a P80 of 35 µm;

• Cu Concentrate Dewatering ........