Shaft sinking was commenced in the fall of 1935 for the purposes of exploring a gold bearing quartz vein, which dips about 45°N. and strikes N.80°E from the east shore of Horwood lake. By august 15, 1936, a 45 degree shaft, the upper part of which followed the vein, had been completed, most of it on the 570-foot level. By October 5, 1936, drifting on this level had disclosed the vein for a distance of 100 feet both east and west of the shaft. Vein widths varied from 2 ½ to 6 feet, and visible gold was exposed both in the shaft and on the 570 foot level. A vein section 75 feet in length on this level west of the shaft was reported to be of good grade of mineable width.
In addition to gold, the vein minerals include pyrite, chalcopyrite, pyrrhotite, galena, and zinc blend. Small grains and veinlets of an unidentified grey mineral of metallic luster when subjected to qualitative tests yielded antimony and arsenic, which suggested the presence of stibnite. Tourmaline and calcite are also present. During the early part of October, 1936, the drift west of the shaft had reached a fault, where the vein was lost, and exploration for a time was confined to drifting on the vein in the porphyry to the east. Later in 1936, underground diamond drilling was commenced with the object of locating the vein beyond the fault. Most of this whole entire project was under the direct control of the Hollinger Consolidated Gold Mines Limited. However, the company has yet succeed in finding a profitable vein zone that's considered to be commercial value. During this time period the company was on a mission to further explore the east portion of this mining zone. Much of this exploration phase is rather being achieved by the use of diamond drilling. As the core samples come up from the hard bearing rock the mines geologists are then in charge of assaying the potentials of the Smith Horne Gold Mine Operation.
All development on the No. 2 shaft was also commencing when the company had additionally sunken the shaft to about 599 feet below ground levels. As shaft sinking continued the company was now engineering three of its own ore producing levels. These three ore producing levels became establish on the mines 200, 325, and 570 foot sections. The first level of the No. 2 shaft was reported to have been opened up by 224 feet of drifting, and 46 feet of crosscutting. Development on the second level had included 136 feet of drifting, and 75 feet of crosscutting. On the last leve the company had additionally opened this section up by constructing 713 feet of drifting, and 360 feet of crosscutting, Nevertheless, the company would end up further exploring this area when a whack of diamond drilling had occurred. Most of this whole entire phase was completed when company officials had retrieved 3,923 feet of core samples from the surface and underground workings. More so the Hollinger Consolidated Gold Mining Company was on another move when it commence development phases towards the on-site plant, As construction continued the company was later ready to install the much need components to run this operation at full force. Much of this whole installation would included a 45 H.P Boiler, Ingersoll Rand 8 by 6 inch hoist, and an Ingersoll Rand 665 cubic foot compressor that was driven by a 130 H.P Ruston Hornsby Diesel Engine.
A well-defined gold quartz vein containing sulphides is exposed on the surface about 800 feet east of the shaft. Drag folds in the vein suggest that the rocks north of the vein moved relatively to the west. The strike and dip of this vein conform roughly to the strike and dip of the vein at the shaft. Additional work, however, will be necessary before their exact relationship can be established.