The known deposits within the Project area are considered to be examples of turbiditehosted mesothermal gold deposits.

The Meguma Terrane of Nova Scotia hosts the Moose River Member, Tangier Member, and Taylors Head Member of the basal greywacke-dominated Goldenville Formation. Gold mineralization is generally hosted in argillite and/or greywacke sequences of the Moose River Member and is associated with regional-scale anticlines. Structural repetition due to folding and faulting may result in thickening of gold-bearing units. Gold occurs as native gold, and has been observed in a number of settings, including along shear cleavage, hair line fractures; in pressure shadows; as inclusions; on the margins of sulphide grains; in thin, bedding-parallel quartz veins and stringers. Mineralization is associated with sulphides, including arsenopyrite, pyrite and pyrrhotite. Lesser chalcopyrite, galena, and sphalerite have been observed.

Mining is based on conventional open pit methods suited for the project location and local site requirements. The mining fleet will include diesel powered down the hole (DTH) drills with 144 mm bit size for production drilling, diesel-powered RC drills for bench-scale grade control drilling, 5 m3 bucket size diesel hydraulic excavators and 7 m3 bucket sized wheel loaders for production loading, and 64 t payload rigid-frame haul trucks and 41 t articulated trucks for production hauling, plus ancillary and service equipment to support the mining operations. In-pit dewatering systems will be established for each pit. All surface water and precipitation in the pits will be handled by submersible pumps.

Mine operations will continue at Touquoy and will move to Beaver Dam once the Touquoy open pit is exhausted in 2023. At Touquoy, ore is hauled to a crusher 700 m north of the pit, which feeds the process plant; and waste rock is deposited into a waste rock storage facility (WRSF) 1,000 m east of the pit, or is used as rock fill in construction of the TMF that is located 800 m east of the pit.

At Beaver Dam, ore will be hauled to a crusher that will be located 600 m south of the pit, and then crushed ore will be hauled by on-highway haulers from Beaver Dam to the process plant at Touquoy operations; and waste rock will be deposited into WRSFs to be situated 650 m south and 1,650 m west of the pit. Mine planning and mining cost estimates are limited to the mining and delivery of ore to the crusher and waste rock to the planned destinations. The haul of ore from Beaver Dam to Touquoy is not covered under the mine plan or mining costs.

Two independent stand-alone open pit operations at Fifteen Mile Stream and Cochrane Hill will run concurrently with the Touquoy and Beaver Dam operations. At Fifteen Mile Stream, ore will be hauled to a crusher that will be located 1,500 m southeast of the pit, which will feed the process plant. Waste rock will be split into potentially acid-generating (PAG) and non-potentially acid generating (NPAG) material and deposited into WRSFs to be situated 700 m south of the pit or will be used as rock fill in construction of the TMF to be located 1,700 m east of the pit.

At Cochrane Hill, ore will be hauled to a crusher to be situated 1,200 m east of the pit, which will feed the process plant. Waste rock will be split into PAG and NPAG material and will be deposited into a WRSFs to be located 700 m north of the pit or will be used as rock fill in construction of the TMF that will be situated 1,300 m southeast of the pit.

Ultimate pit limits are split into phases or pushbacks to target higher economic margin material earlier in the mine life:

• The Touquoy pit is split into north, south and east phases with the higher-grade, lower strip ratio north phase mined ahead of the south and east phase pushbacks. From the start of 2019 a 4.5-year pit production schedule is developed;

• The Beaver Dam ultimate pit is subdivided into two phases, south and north, but for considerations of vertical advance the pit is mined as one phase from top to bottom. The Beaver Dam material adds another 3.5 years to the pit production schedule;

• At Fifteen Mile Stream, the Egerton–MacLean pit is split into south and north phases with the higher-grade and lower strip ratio south phase mined ahead of the north phase. The Hudson and Plenty pits are mined as one phase each. Starting in 2021 an 8.5-year mine production schedule is developed;

• The Cochrane Hill pit is split into south and north phases with the higher-grade south phase mined ahead of the north phase. A starter phase is also designed to provide waste rock construction materials to the starter tailings dam. Starting in 2022 an eight-year mine production schedule is developed.

During the pre-stripping phase of mine operations, all ore mined in the pit will be stockpiled.

Mining operations will be based on 365 operating days per year with two 12 hour shifts per day. An allowance of 12 days of no mine production has been built into the mine schedule to allow for adverse weather conditions.

After mining is completed, the mining equipment will be removed, and the pits will be allowed to fill with water producing ponds. Contouring and re-vegetation of the fill areas will be completed. All mine buildings will be removed.

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The Touquoy process plant is designed for an ore treatment of 2 Mt/a or 250 t/h based on an availability of 8,000 h/a, or 91.3%. However, the crushing section design is set at 60% availability since it operates outdoors and uses modular semi- mobile equipment. It will accept Touquoy ROM ore for the first five years of operation and thereafter ROM ore from the Beaver Dam deposit at the same treatment rate using the same unit operations. Only relatively minor equipment modifications are expected to be needed at Touquoy to treat the Beaver Dam ore.

The main plant building houses the grinding, gravity recovery, reagent, elution and refinery sections. The crushing and CIL sections are located outdoors. The three-stage crushing circuit ahead of a single-stage ball mill is based on modular semi-mobile crushing equipment so as to allow the modifications necessary to allow the introduction of Beaver Dam ore.

Gravity and Intensive Cyanidation
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