Accessibility, Climate, Local Resources, Infrastructure and Physiography

The property lies on the north slope of the Kootenay River truncated north/south trending Nelson Range. The main height of land south of the property is Toad Mountain which rises to 2,210 metres (7,260 feet). The southern boundary for the property suite rises to 1,158 metres. The 257 Level project area is located further down the slope at 783 metres (2,570 feet). Access to the entire property is excellent as the main regional road (Blewett) runs across the slope of the face around the 675 metres (2,200 foot) contour. The road systems are interconnected with main Provincial trunk highways roughly 10 km to the east of the site, just west of the City of Nelson.

The climate is sub-alpine with hot dry summers and cold winters. Snow levels in the higher portions of the property can exceed 3 metres (10 feet) in some years which would not impact the operation of the Mine. There are water shortages during the year in the local hydro-electric grid as the river levels drop. This may also affect production water requirements so on site long term storage is needed by way of tanks or ponds. Significant water volumes are located in the lower underground Mine workings but this potential water resource cannot be quantified without more study due to unknown recharge rates.

The vegetation consists of a forest of high quality pine and fir and cedar trees descending in quality to scrub trees mixed with low bush and thick in filled trees. The range of tree types (larch, hemlock, birch and yew) allows for limited logging and compost pulp production. Several creeks running down the north flank of Toad Mountain are suitable for small run of river power grid systems and water storage. The height, slope, intermittent seasonal flow and natural underground water coursing would have to be studied prior to any power development planning.

There is an excellent pool of highly trained and motivated workers available in the area and region. Any manner of trained professionals required to augment the Mine’s ongoing operations is also locally available. Even seasoned heavy equipment operators and blasters are available within a day’s notice on a year round basis. The City of Nelson is roughly 8 km to the east of the site and any required service items to support Mine operations can be obtained within hours. The local regional airport is located in Castlegar roughly a half hour drive (32 km) to the west. Should materials be needed by air support, they can be obtained from the Vancouver and Calgary centres daily.

The site is well serviced with access and logging road systems with running water, a strong power grid and a fully developed Mine building complex which is available year round. The 257 Level has undergone extensive rehabilitation over the past several years and is now in a mine production ready state. It is serviced by a mine rail system and has an electric train with flat cars and 2.5 tonne rock cars.

The complex includes a full shop building, first aid building, general offices and a full on site assay lab. The crushing, screening and milling operations are located 9.1 metres (30 feet) below the general complex and are gravity fed by the rail system in the Mine.