2015-01-13_REVISION - M1984094 (5)

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INTRODUCTION The Gloria Z Mine site is located immediately northwest of the town of Fairplay in Park County and was initially mined for placer gold by many different methods dating back to the 1860's. Sluicing, hydraulicking, and other methods were employed over many decades. All of this old mining was done without any salvage of topsoil and without any regard to reclamation of the site. For decades, the site lay dormant. In 1984, Sanborn Sand and Gravel, Inc. obtained a 110c Construction Materials permit to mine and sell gravel from the site, utilizing many of the piles that were left by the old gold placer operation. Most of the disturbed area for this permit was already disturbed by pre -law gold placer operations. The original permit area was 9.9 acres. In 1993, a conversion to a 112c operation was made, which increased the permit area to 18 acres. In 2004,the property was sold to Playfair Land CO. LLC. Of Louisiana. Also in 2004, An Amendment ( #1) was approved to the permit which increased the permit area to 30.47 acres and also gold processing was added to the permit in addition to sand and gravel production. The permit was also transferred at that time to Sanborn Sand and Gravel dba/Golden Cross Aggregate. The permit number is M- 1984 -094. As gold prices increased in 2009 -2011, gold mining and recovery was beginning to become the primary focus of the site activity, especially since the recession greatly limited gravel sales. Gravel products will likely be the bulk of the sales over the life of the mine. Gravel sales are highly dependent upon the local economy, which has experienced huge swings in the past 10 years. However, gravel sales will take place over the life of the mine, while the gold operation is speculative and could cease at any time due to the highly variable nature of gold deposited in placer environ- ments. In November of 2012, A Technical Revision (TR -01) to the Permit was approved which allowed groundwater exposure in the mining area, addressed all planned mining activity and water rights issues. The bond was increased from $33,114 to $78,218. Gloria Z Mine TR -03 2015 1