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• Mining Area 4 <br /> Mining Area 4 targets portions of material left between the northern and southern pay channels. <br /> This material was below target grade of the Derry Dredge, but is marginal material based on the <br /> current cutoff grades experienced in the Fairplay-Alma District. The exploration area between <br /> pay channels is lightly drilled and will be explored prior to mining to verify this interpretation is <br /> correct. A significant paleochannel runs through this area but historic drilling indicates that it <br /> does not carry significant grade. Exploration will attempt to explore this channel more <br /> completely. <br /> • Mining Area 5 <br /> Mining Area 5 targets material that was either too far up the valley side to be reached by the <br /> General Gold Corp Dredge or was at the end of the dredge's run during the time of General Gold <br /> Corp's bankruptcy. The area targeted around the final dredge pond may extend to the point <br /> where Corske Creek dumps into the valley floor. <br /> • Exploration Targets <br /> Exploration targets fall into three main categories: lateral slopes of the alluvial valley floor,the <br /> valley floor between the northern and southern pay channels, and the extension of the pay <br /> channels towards Corske and Herrington Creeks. Test pits and holes indicate potential paying <br /> gold grades above the valley floor. These areas were unreachable with the dredges and were <br /> likely difficult to access with Hallenbeck's dragline. However, modern equipment can easily <br /> access these previously unreachable areas. <br /> The space between the northern and southern pay channels carried gold grade but Parker's data <br /> indicates that it is sub-economic. Resistivity logs indicate paleochannels that were not well <br /> sampled. These paleochannels and the margins of historic dredging will be sampled to provide <br /> additional information for ore-waste analysis. <br /> The most exciting exploration target within the lease boundary is the extension of the north and <br /> south pay channels towards their source material. Limited drilling data shows reasonable gold <br /> grades, but the drilling density is insufficient to make a mining decision. Bulk samples (10-30 <br /> Box Creek Placer Mine Greg IA icki and Aswiatcs.PIA.( <br /> September 2018 D-4 <br />