The Swamp Point sand and gravel prospect is located on the east side of Portland Canal, 53 kilometres south of Stewart and approximately 950 metres southeast of the past producing Swamp Point limestone quarry (103O 017). Site access is by air or water. Sand and gravel may have been extracted from this area sometime prior to 1982. Ascot Resources Ltd. acquired the property in 2004.

The region is underlain by a roof pendant, consisting of volcanic and sedimentary rocks, within the Eocene Coast Plutonic Complex. These pendant rocks have been correlated with Middle-Upper Jurassic Hazelton Group rocks and overlying upper Middle to Upper Jurassic Bowser Lake Group sedimentary rocks. The Hazelton rocks consist of variably chloritized pillow and massive andesite and basalt with minor mafic tuffs. The overlying Bowser Lake sediments consist of argillite, siltstone and sandstone with minor chert and limestone. These rocks strike north to northeast and dip east. There are two observable phases of folding in the area, an initial north-northeast trending phase followed by a later east-northeast trending phase.

The Swamp Point sand and gravel deposit underlies a 150 metre high terrace on the east side of the Portland Canal and slopes towards the coastline. Glaciofluvial deposits appear to compose most of the terrace or plateau-like landform at Swamp Point and form most of the estimated reserve of the Swamp Point property. Bedrock exposure is mostly limited to the shoreline and the steep slopes in the northwest part of the property. Rock types reported include argillite, green fine-grained volcanics, limestone and hornblende schist.

Exploration of the Swamp Point area was initiated by previous owners in October 2002. Air photographs and topography were analyzed and a preliminary cross-sectional model of the gravel deposit was developed. In November 2002, a three-day aerial and ground survey was conducted and samples of material were obtained from shallow hand-dug excavations, and from bank exposures. A geophysical survey of the target area was conducted in December 2002; seven seismic lines totalling 4.2 line kilometres were completed. In March 2003, nine Becker-drill holes totalling 402 metres were completed and four test pits using a tracked excavator were excavated. Approximately 10 tonnes of material from the drillholes and test pits was transported to Vancouver for testing. Based on sieve analyses of samples obtained from drillholes, the deposit comprises approximately 51 per cent sand, 44 per cent gravel and 5 per cent silt. Boulders ranging from 0.5 to 3.5 metres in diameter were observed at surface and noted in drillholes. Using information from surface, drillholes and the seismic survey, an inferred resource of 66 million tonnes of sand and gravel was calculated for the deposit. This is based on an estimate of 30,000,000 cubic metres for the volume of mineable sand and gravel and an in-situ density (or conversion value) of 2.2. This testwork indicated that the sand and gravel material meets or exceeds typical Canadian and American specification requirements. Results from the exploration work in the period from 2002 through 2004 showed that the Swamp Point area is underlain by a sand and gravel deposit that has substantial thickness (locally in excess of 84 metres). In May 2004, Golder Associates Ltd. conducted a preliminary economic study of the aggregate resource to determine the potential economic value of the deposit. Recommended work commenced in September, 2004 and involved additional material testwork and evaluation of operational, economic and environmental parameters to ensure certain critical factors were evaluated and to better quantify key economic inputs. In August 2006, Ascot Resources Ltd. received a B.C. Mines Act Permit allowing commencement of construction and development of the Swamp Point aggregate mine. Site development commenced in October 2006 with clearing of access and lay-down areas, survey and construction of haul roads and installation of an 18-man construction camp. In October and November, survey and pioneering of the perimeter haul road was started, and stripping and hauling of vegetation and overburden from planned initial aggregate extraction sites commenced. Shipments of aggregate for a supply contract to Fairview Terminals in the Port of Prince Rupert commenced in the third week of April and continued until the end of June, 2007; a total of 145,000 tonnes were shipped by tug and barge during this period. From September to end of November 2007, about 3000 tonnes were transported to customers in Prince Rupert and Stewart. In January 2008, the final engineering design for the ship-loader support structures and attendant marine and earth works was completed. During February and March, 2008 a permanent bridge over South Beach Creek was constructed. Subsequent to year-end, during the period April to June 2008, the original small craft dock at South Beach was upgraded with a new elevated and snow-protected walkway and new float and breakwater. Concurrent with this work the general clearing and earthworks for installation of the ship-loader substructure were completed and the accommodations upgraded to meet expected needs for the remainder of the construction period. On July 11, 2008, Ascot Resources Ltd. announced the suspending of construction of the ship-loading facility at Swamp Point. This was in reaction to the recent dramatic downturn in the United States housing market which has had a negative effect on the demand for aggregate products in California and made it increasingly difficult for the company to secure profitable sales contracts in California for near-term delivery.

In December, 2010, as there had been minimal activity at Swamp Point for more than two years, management decided to write off the property and associated assets for accounting purposes. In June 2011, in order to further reduce its costs at Swamp Point, the company closed its camp at the mine site and removed most of the associated equipment.

In 2015, Highbank Resources Ltd. commissioned the wash plant, cone crusher, jaw crusher and stacking conveyor systems at their Swamp Point property. Several samples of the first production were delivered to a certified testing laboratory in Terrace, where standard construction aggregate tests will be conducted to ensure compliance with end-user specifications. Samples of the initial Swamp Point North (SPN) quarry run were also delivered to sand and gravel consumers in Prince Rupert. Currently the plant is being used to produce crushed gravel for on-site haulage road and stockpile site upgrades. Once these improvements are completed SPN will move into full plant production mode and begin preparing aggregate stockpiles for shipments.

Within a year of receiving a mine operating permit, the SPN-Portland Canal quarry project obtained funding, procured and transported to the site all necessary equipment, establish a year-round camp, logged and cleared the site and expanded a road haulage network, construct a multimillion-dollar marine load-out system, build a water recirculation pond for the aggregate washing plant, and commissioned all equipment for a fully functioning oceanside sand and gravel operation.

In April 2015, an industrial mineral resource estimate was released for the Swamp Point North License and Extension areas totalling a volume of 33,047,024 cubic metres with a specific gravity of 2.17 and totalling 71,712,043 tonnes plus an additional inferred resource of 1,035,237 cubic metres with a specific gravity of 2.17 for and totalling 2,246,464 tonnes (Makepeace, D. (2015-04-23): NI 43-101 Technical Report on a Preliminary Economic Assessment for Swamp Point North Aggregate Property).

On April 30, 2015, the 100-foot seagoing tug Sea Warrior and barge was the first commercial vessel to moor at the company’s recently built barge-loading facility. With the barge anchored, crews immediately put to work the barge load-out conveyor system, loading approximately 4000 tonnes of customer-ordered one-inch base crush material through the night. This first deployment of the barge-loading system performed better than anticipated, and loading was accomplished sooner than expected. The Sea Warrior then towed the loaded barge to deliver the company’s first commercial shipment of aggregate, to the Port of Prince Rupert, arriving May 2, 2015. The arrival of this first sand and gravel aggregate shipment to Prince Rupert is a milestone in the development of Highbank’s deposit. It demonstrates to local end-users that a new high-quality, competitive and locally sourced aggregate is now available (Press Release - Highbank Resources Ltd., April 14, May 5, 2015).