Mineralization at the Mount Milligan deposit consists of two styles, early-stage porphyry gold-copper (Au-Cu) and late-stage high-gold low-copper (HGLC). The early-stage porphyry Au-Cu mineralization comprises mainly chalcopyrite and pyrite, occurs with potassic alteration and early-stage vein types and is spatially associated with composite monzonite porphyry stocks (especially at their hanging-wall and footwall margins), hydrothermal breccia, and narrow dyke and breccia complexes. Late-stage, structurally controlled pyritic HGLC style mineralization is associated with carbonate-phyllic alteration and intermediate- to late-stage vein types, and is spatially associated with faults, fault breccias and faulted lithological contacts (i.e. faulted monzonite porphyry dyke margins). It crosscuts and overprints the earlier stage porphyry Au-Cu mineralization.

Porphyry style Au-Cu mineralization occurs in the hanging-wall and footwall zones of the MBX, Saddle, Southern Star, and Goldmark stocks. Disseminated and vein/veinlet-hosted mineralization is associated with the composite monzonite stocks, their brecciated margins and variably altered volcanic host rocks. Core zones of auriferous chalcopyrite-pyrite mineralization with magnetite rich potassic alteration transition laterally and vertically to pyrite rich HGLC zones within the inner propylitic (albitic) and carbonate-phyllic alteration shells; the latter appear to be late stage and exhibit strong structural control.

Brownfield target areas west of the mine have mainly peripheral alteration and mineralization signatures; these include near surface HGLC zones proximal to structures. Narrow intrusive units, dykes or pencil porphyries, are common and are locally Au-Cu mineralized. The Heidi target farther west and outside the mine lease is a shallow copper prospect with low gold.

Hypogene Mineralization
The bulk of the mineralization consists of disseminated and vein-hosted chalcopyrite (in potassic and sodic-calcic alteration assemblages) and disseminated and vein-hosted pyrite (in all alteration assemblages). Late stage polymetallic (subepithermal) veins are rare, but most pronounced in the DWBX zone. These veins contain sphalerite, galena and sulfosalt in addition to chalcopyrite and pyrite.

Chalcopyrite
Chalcopyrite is associated with potassic alteration at the contact margin between volcanic and intrusive rocks. It occurs most commonly as fine-grained disseminations and fracture fillings, and less commonly as veinlets and in veinlet selvages. Adjacent to the MBX stock, chalcopyrite may be accompanied by pyrite to form coarse sulphide aggregates. Chalcopyrite-bearing veins contain pyrite and magnetite in a gangue of potassium feldspar, quartz, and calcite. In massive trachytic rocks, chalcopyrite occurs with pyrite along curviplanar partings and as disseminations. Chalcopyrite also occurs in gold-bearing early quartz veins in the Southern Star, WBX and DWBX zones.

Pyrite
Pyrite content increases with distance from the MBX and Southern Star stocks and is most abundant in propylitically altered rocks. Pyrite occurs as disseminations, veinlets, large clots, patches, and as replacements of mafic minerals. Gold mineralization in the 66 zone is associated with 10-20% pyrite. Cross-cutting vein relationships indicate several generations of pyrite mineralization.

Gold
Gold occurs as grains from 1 to 100 µm in size, as observed in process samples. Grains occur as microfracture fillings and are attached to pyrite, chalcopyrite, or bornite (Ditson, 1997). Gold also forms inclusions within pyrite, chalcopyrite, and magnetite grains. SEM work indicates electrum throughout the deposit with varying gold to silver ratios.

Silver
Silver is a minor metal found in the Mount Milligan deposits. Polymetallic gold-silver bearing sulphide and sulfosalt rich veins are present in volcanic rocks peripheral to the MBX and Southern Star stocks. Tetrahedrite is the most widespread Ag-bearing sulfosalt mineral at Mount Milligan. Silver is also known to occur throughout the deposits in conjunction with copper and gold mineralization, from micron-scale electrum grains and inclusions.

Polymetallic Veins
Gold- and silver-bearing sulphide, sulfosalt and carbonate-rich veins are present in andesitic volcanic rocks peripheral to the MBX and Southern Star stocks on the western margin of the deposit, in the DWBX and Saddle zones. They comprise pyrite with lesser chalcopyrite, sphalerite, galena, molybdenite, arsenopyrite, tetrahedrite-tennantite, and minor quartz and carbonate. Alteration envelopes are not always present but are recognized to consist of chlorite-sericite-carbonate in propylitically altered andesitic volcanic rocks. Polymetallic veins intersected in the DWBX zone exhibit subepithermal textures (Sillitoe, 2010).

Supergene Mineralization
Supergene enrichment is poorly developed at Mount Milligan. It is recognized in the MBX, WBX, and Southern Star zones, and is deeper and more extensive in the MBX and WBX zones than in Southern Star (Placer Dome, 1991). Supergene enrichment is restricted to the sporadic occurrence of secondary copper minerals including sulphides (covellite, chalcocite, and djurleite), oxides (cuprite and tenorite), carbonates (malachite and azurite) and native copper. The secondary sulphides occur as rims around chalcopyrite. Oxides, especially cuprite, occur as surface coatings on native copper.

Secondary copper minerals commonly occur with iron oxides (goethite, magnetite, and hematite) and iron carbonate (siderite), particularly where malachite and azurite are present. Hydrous iron oxides, which are generally referred to as limonite and include goethite, commonly replace chalcopyrite and pyrite. Limonite either completely replaces sulphide minerals or occurs as coatings on surfaces of fractures and hairline cracks. Limonitic coatings commonly occur at depths greater than those at which pyrite or chalcopyrite are completely replaced. Supergene enrichment is best represented in the MBX and WBX zones between 6109150N to 6109800N, and between 434000E to 434850E, where it is partially developed over a 20 m thickness. Locally, the supergene mineralization reaches 50-60 m in thickness, particularly along the north and eastern margins of the MBX stock.

Length Width Continuity
Mount Milligan is a roughly tabular, near-surface silica-saturated alkalic gold-copper porphyry deposit that measures approximately 2,500 m north-south, 1,500 m east-west, and extends to a vertical depth greater than 500 m. There is 1 to 50 m depth of till overburden in the deposit area. Within this system, the overall shapes of the mineralized bodies are irregular and gradational. The two principal deposits, MBX Main and Southern Star, are centred on composite monzonite porphyry stocks. The MBX Main deposit has been subdivided into zones based on structural boundaries and/or changes in alteration-mineralization. These zones include the MBX, WBX, DWBX and 66. The Southern Star deposit has not been subdivided into zones but may be considered to include the Saddle zone at its northern end. The limits of these mineralized zones can vary greatly in size and shape depending on which grade cut-offs are used. The known deposit extents are limited by the lack of drill hole information and could potentially be extended down-dip of monzonite porphyry stocks to the west, down-dip of stratigraphy to the east, and to the north and south along the linear trend of the stock cluster.

The mining operation is a conventional shovel and truck open pit mine feeding a 60,000 t/d (permitted throughput) processing plant. The planned mine life is 9 years with a Proven and Probable Reserve of 191.0 million tonnes at a grade of 0.23% copper and 0.39 g/t gold. The pit has been planned as a series of discrete pushbacks and is scheduled to maximize the production of high-value ore, especially during the next three years. This strategy may necessitate mining at a higher cut-off value and the stockpiling of lower value material for processing later in the mine life. The average stripping ratio for the LOM is estimated to be 1.24:1.

The mine currently uses two electric rotary blasthole drills which drill 311 mm diameter holes, two diesel blast hole drills for 203 mm holes, two 41 m³ electric rope shovels and two 19 m3 front end loaders loading haul trucks of 220 and 190 tonnes capacity from 15m high production benches. The operation is supported by standard ancillary equipment including track and rubber tire dozers, graders and a fleet of service vehicles.

The mine operates continuously, seven days per week, using a roster schedule of predominantly 14 days on, 14 days off, with 12-hour shifts.

The overall mining sequence was developed through a series of mining pushbacks (phases) specific to the MBX, 66 and WBX subzones (collectively, the Main Zone), and the Southern Star (SS) phases.

Mineralized material with a value greater than $7.64 (C$9.55) per tonne and with a copper grade greater than or equal to 0.12% is designated as standard ore. Material with a value greater than $7.64 (C$9.55) per tonne with copper grades less than 0.12% are designated as HGLC (high-gold low- copper) ore.

The ultimate pit haul roads have been designed with an overall 34 m width that will include an outside berm (4.84 m wide, 1.82 m high) and ditches (1.00 m) for dual lane passing of 227-t haul trucks (8.28 m) with a one-half truck width (4.12 m) for truck separation. On each side of the truck, an allowance of 4.23 m for rubble buildup and safety berm creep has been included. Roads have been designed with a maximum 10% down grade.

The current LOM Plan consists of nine Phases, building off previous Phases, 1 and 2, which are now complete. The mine is currently operating in Phases 3 and 4 with initial stripping started in Phase 8 in the Southern Star Pit. Phases 3, 4, 5, 6a, 6 and 7 are focused on the Main Zone while Phases 8, 9a and 9 will focus on the Southern Star Pit. The phases are not mined sequentially. The LOM schedule is focused on returning the highest value ore as early as possible while honouring metallurgical constraints.

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The Mount Milligan process plant was originally designed to process ore at a nominal rate of 60,000 t/d, producing a marketable concentrate containing copper, gold, and silver. Key process equipment consists of:

• Flotation circuits:
- rougher flotation: two parallel trains of two 200 m3 tank cells;
- rougher-scavenger flotation: two parallel trains of three 200 m3 tank cells;
- first cleaner flotation: two 100 m3 tank cells;
- second cleaner flotation: four 30 m3 tank cells;
- third cleaner flotation: two 30 m3 tank cells;
- one 4 m x 12 m flotation column;
- cleaner scavenger flotation: five 100 m3 tank cells.

• Regrinding and gravity concentration circuits:
- one centrifugal gold concentrator.

The rougher/rougher-scavenger flotation circuit produces a higher-grade rougher concentrate and a lower-grade rougher-scavenger concentrate. These concentrates are separately reground and then upgraded ........