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Page 1 TECHNICAL REPORT on the MAIN ZONE OPTIMIZATION TECHNICAL REPORT ON THE MAIN ZONE OPTIMIZATION HUCKLEBERRY MINE OMINECA MINING DIVISION BRITISH COLUMBIA, CANADA Latitude 53o40’52” North Longitude 127o10’ 35” West 1:50,000 map sheet 093E 11E Prepared for Huckleberry Mines Ltd. and Imperial Metals Corporation by Kent Christensen, P. Eng. Gerald R. Connaughton, P. Eng Peter Ogryzlo, M.Sc., P.Geo. November 22, 2011 The effective date of the exploration data is September 1, 2011 Amended May 11, 2016 Huckleberry Mine Main Zone Optimization Page 1 TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................. 2 1.0 SUMMARY ....................................................................................................................... 9 2.0 INTRODUCTION AND TERMS OF REFERENCE ................................................. 10 3.0 RELIANCE ON OTHER EXPERTS ........................................................................... 12 4.0 PROPERTY DESCRIPTION AND LOCATION ....................................................... 13 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...................................................................................................................... 18 5.1 Access to the Huckleberry and Huckleberry Mines .............................................. 18 5.2 Climate .................................................................................................................. 20 5.3 Local Resources .................................................................................................... 20 5.4 Infrastructure ........................................................................................................ 21 5.5 Physiography ........................................................................................................ 21 5.6 Main Zone Optimization infrastructure requirements .......................................... 21 6.0 HISTORY ........................................................................................................................ 22 6.1 Exploration and Mining History of the western Nechako Plateau ....................... 22 6.1.1 Huckleberry Deposit Exploration, Development, and Operation ............................. 23 6.2 Ownership History of the Huckleberry and Huckleberry properties .................... 25 6.3 Previous exploration - Geophysical surveying ..................................................... 26 6.4 Previous exploration - Geochemical surveying .................................................... 28 6.5 Interpretation of historical geophysical and geochemical exploration ................ 28 6.6 Previous Exploration – Diamond Drilling 1962-1997 ......................................... 28 6.7 Previous Exploration – Development Drilling 1997-2008 ................................... 29 6.8 Historical Mineral Resource and Mineral Reserve Estimates.............................. 30 6.9 Production from the Huckleberry Mine ................................................................ 33 7.0 GEOLOGICAL SETTING AND MINERALIZATION ............................................. 33 7.1 Regional Geology ................................................................................................. 33 7.2 Regional Structural Style ........................................................................................ 33 7.3 Local and Property Geology – Huckleberry Main and East Zone Deposits ........ 36 7.3.1 Geology of the Huckleberry Porphyry Copper – Molybdenum Deposit ...................... 36 7.4 Mineralization in the Huckleberry Deposit .......................................................... 40 8.0 DEPOSIT TYPE ............................................................................................................. 42 9.0 EXPLORATION ............................................................................................................. 43 10.0 DRILLING ...................................................................................................................... 44 10.1 Drilling-type, extent and procedures .................................................................... 44 10.2 Summary of results ................................................................................................ 46 10.2.1 2009 Peripheral Drilling ............................................................................................ 46 10.2.2 2009 Deep Drilling .................................................................................................... 47 10.2.3 2010 Drilling .............................................................................................................. 47 10.3 Main Zone Optimization 2009-2010 drill hole locations ..................................... 48 11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY ...................................... 50 11.1 Diamond Drilling 2009-2010 ............................................................................... 51 11.2 Sample Preparation .............................................................................................. 51 11.3 Sample Analysis. ................................................................................................... 52 11.4 Sample security ..................................................................................................... 52 Huckleberry Mine Main Zone Optimization Page 2 11.5 Reliability of data .................................................................................................. 52 12.0 DATA VERIFICATION ................................................................................................ 54 13.0 MINERAL PROCESSING AND METALURGICAL TESTING ............................. 56 13.1 Nature and Extent of the Testing and Analytical Procedures ............................... 56 13.1.1 Bond Work Index Testing .......................................................................................... 56 13.1.2 SAG Power Index (SPI) and Crusher Index (CI) Testing .......................................... 57 13.1.3 Standard Rougher Flotation Tests .............................................................................. 59 13.2 Assumptions or predictions for recovery estimates .............................................. 61 13.3 Relationship between test sample, mineralization styles and the mineral deposit 61 13.4 Processing factors or deleterious elements that could have a significant effect on potential economic extraction ....................................................................................... 62 14.0 MINERAL RESOURCE ESTIMATES ........................................................................ 63 14.1 Sample Databases ................................................................................................. 64 14.2 Surfaces – Topographic and Excavation .............................................................. 65 14.3 Specific Gravity ..................................................................................................... 66 14.4 Geological model .................................................................................................. 66 14.4.1 Geological domains ................................................................................................... 68 14.5 Outliers, or extreme grades .................................................................................. 72 14.6 Compositing .......................................................................................................... 72 14.7 Model Geometry .................................................................................................... 72 14.8 Block model generation ........................................................................................ 73 14.9 Mineral Resource Estimate ................................................................................... 73 14.10 Model Validation ................................................................................................ 74 14.11 Factors affecting Mineral Resource Estimates ................................................... 76 15.0 MINERAL RESERVE ESTIMATES ........................................................................... 78 15.1 Introduction ........................................................................................................... 78 15.2 Pit Optimization .................................................................................................... 79 15.2.1 Geological Block Model ............................................................................................ 79 15.2.2 Pit Optimization Input Parameters ............................................................................. 81 15.2.3 Pit Optimization Lerchs-Grossman Sensitivity.......................................................... 82 15.3 Factors that may materially affect the Mineral Reserve estimate. ....................... 85 16.0 MINING METHODS ..................................................................................................... 85 16.1 Previous Mine Development ................................................................................. 85 16.2 Recent Mine Development .................................................................................... 86 16.3 Pit Design Basis .................................................................................................... 87 16.3.1 Wall Angles ..............................................................................................................
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