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We plan to do additional work in the coming months including: <br /> h. Open the Topaz and Carnation portals; however, use of the Carnation portal will be <br /> limited to ventilation only. <br /> i. Repair buildings and infrastructure at the Sunday, West Sunday, and Topaz mines. <br /> j. Conduct long-hole development drilling in the Topaz decline to pinpoint the location <br /> of the ore body. <br /> k. Conduct long-hole development drilling at high-grade vanadium intercepts in the <br /> production drifts above the water table in the other four mines to determine the quantity <br /> of ore available at these locations. <br /> I. Mine up to 100 tons of ore for testing. This ore will be stockpiled underground until <br /> such time that the testing facility has been permitted. <br /> In your letter, you requested that we provide additional information regarding (1) <br /> construction of Environmental Protection Facilities (EPFs), (2) potential impacts to the <br /> mine water pool, and (3) the planned bulk sampling project. This information is provided <br /> below. <br /> 1. Storm water control structures are currently in place at each of the five mines that <br /> make up the Sunday Mines Group. Pinon Ridge Mining LLC (PRM) is currently in the <br /> process of updating its Storm Water Management Plan (SWMP) and will provide <br /> updated maps showing these control features with as-built certifications once the <br /> SWMP has been revised. Please note that some of these features have been modified <br /> since the Environmental Protection Plan (EPP) was approved. These changes were <br /> made with the verbal approval of the DRMS and the BLM in an effort to improve storm <br /> water control and limit erosion. Construction of the lined ore pads is not proposed at <br /> this time because the ore mined for the bulk sampling project will not be stored on the <br /> surface, but rather will be transferred directly from a diesel-fueled skid-steer loader to <br /> a dump truck for transportation to the off-site test facility. <br /> 2. Impacts to the mine water pool are not anticipated because the bulk sampling program <br /> will be conducted above the lower, flooded portions of the mines. The sampling will <br /> focus on high-grade vanadium ore containing low levels of uranium (less that 0.05% <br /> uranium) that were not mined during mine development when vanadium prices were <br /> low. No pumping of water will be necessary to complete the bulk sampling. <br /> 3. The bulk sampling project will consist initially of transporting and testing 20 tons of ore <br /> using kinetic separation at an off-site test facility. This separation process, formerly <br /> referred to as ablation, will consist of using high pressure water sprays to separate the <br /> mineral from the surrounding sand grains thereby producing a concentrate that can <br /> be shipped to potential buyers for further testing. If needed, up to 80 additional tons <br /> will be transported from the mine and tested using kinetic separation. <br /> Potential pods of high-grade vanadium have been located in the production drifts <br /> above the water table. These areas will be drilled and probed to determine the <br /> approximate quantity of ore available at each location. <br /> 2 <br />