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Drilling will be accomplished with a truck- mounted core rig accompanied <br />by a water truck typically of 3,000 gallon capacity; a flat -bed service <br />truck; and smaller pickup trucks as necessary for service and <br />transportation to and from the drilling sites. Water will be provided to <br />drill sites CO -14 -01 through CO -14 -09 from the mine supply at the main <br />plant. <br />Some or all of the holes may be geophysically logged. The equipment <br />necessary for such work is typically mounted in a full -size Suburban - <br />type 4X4. Under this program no roads are proposed for construction <br />and no blasting will be performed. <br />The moderately rugged terrain of the proposed exploration area consists <br />primarily of the mesas drained by Hay Gulch. Elevations vary from <br />approximately 7,200 feet to 7,800 feet on the mesa top. The major <br />changes in elevation are predominantly along the edges of the flat top <br />mesas with relatively little elevation change on the mesa tops. All 9 of the <br />exploratory boreholes will be drilled on the mesa top. Topography is <br />shown on attached map Topography 8a Drill Hole Locations (Appendix 4 <br />(4) page 1). <br />The proposed exploration area is accessed by dirt roads and well defined <br />jeep trails controlled and maintained by the Ute Mountain Ute Tribe and <br />the State of Colorado. The weather can drastically affect mobility and as <br />such severely limit exploration efforts, especially in winter months <br />The exploration borehole drilling is anticipated to be completed, weather <br />permitting, by the end of December, 2014. <br />Water bearing strata is not expected to be encountered in the 9 proposed <br />drill holes. Water has not been encountered in previously drilling <br />projects in the area or in the active workings of the King II mine. Small <br />amounts of water were encountered occasionally at the King I mine. <br />These were believed to be small "perched" aquifers that dried up quickly <br />once the coal had been removed below them. Unlike the King II mine, the <br />King I mine strata dipped below the coal outcrop. King II outcrops on <br />practically all sides of the surrounding mesas, effectively draining any <br />perched aquifers to the outcrop. <br />GCC Energy, LLC King II Mine <br />Section 2.04.6 <br />Page 7 June 26, 2014 <br />TR Z2 <br />,gpProje-IJ <br />83• Ju1•2of4 <br />