The New Afton copper-gold mine is located approximately 350 kilometres northeast of Vancouver in the south-central interior of British Columbia. The property is only 10 kilometres from the regional hub of Kamloops and is easily accessible by paved road.
The New Afton Mine occupies the site of the historic Afton Mine, a previous operation of Teck Resources Limited (“Teck”), and includes an open pit, underground workings, historic support facilities, a new concentrator and recently constructed tailings facility. The New Afton deposit extends to the southwest from immediately beneath the Afton Mine open pit. New Afton began production in June 2012 and began commercial production ahead of schedule in July 2012. The underground operation is expected to produce, on average, 85,000 ounces of gold and 75 million pounds of copper per year over a 12-year mine life.
The Company’s holdings in the area comprise the Afton Group and the Ajax Group. The New Afton deposit lies within the Afton Group. The Afton Group consists of 61 mineral claims included in a mining lease issued by the Ministry of Energy, Mines and Petroleum Resources on November 29, 2006 (the “Afton Mining Lease”). The total area of the Afton Mining Lease and all other claims is 12,450.4 hectares.