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GDS ENTERPRISES INC <br /> EAGLE MINE PROJECT <br /> Timberlake 1 & 2 Mine Claims <br /> MINING PLAN <br /> The mining method to be employed is "open cast" with the permit area to be broken up into a <br /> plant site area where a gravity separation plant to separate the gold and other minerals, water <br /> storage ponds, temporary tailings piles, and mining strips or panels as shown on the <br /> accompanying mine plan map. Mining will begin on Timberlake 2 and continue to Timberlake 1 <br /> in a similar fashion after Timberlake 2 is complete. On Timberlake 2 the panels are 200' wide <br /> and parallel to the North side of the permit area until the shape of the permit area imposes <br /> modification. <br /> Each panel will be mined to its end after stripping the topsoil back for storage in windrows on <br /> the adjoining panel, and doing the same with overburden as required. The operation will last <br /> approximately 3-5 years on Timberlake 2 and 7-10 years on Timberlake 1. <br /> The topsoil and overburden stripping will be done with a frontend loader, excavator, and haul <br /> truck to move the stripped material back onto an adjoining panel and out of the way in a <br /> stockpile pending reclamation. <br /> Mining and ore transport, as well as tailings backfill transport, will be done with a 3-6 cubic yard <br /> front end loader, excavator, and a haul truck which will assist with stripping and movement of <br /> the mined material. There will also be a track type skid steer loader which will be used for <br /> cleanup and finish work during reclamation. Other equipment on site will be a backhoe-loader, <br /> welding truck, field conveyors, maintenance trucks, generators of 60KW and 250KW capacity, <br /> various support vehicles, fuel storage tanks, transportation vehicles, and ATVs. Sanitation will <br /> be regularly supplied by applicable septic removal providers. <br /> The processing plant is a gravity concentrator which uses water to slurry the ore to be pumped <br /> thru screens, agitators, an Oro mobile recovery system, and low-G centrifuges. There could be <br /> various takeoff points for treated ore slurry to be diverted to the tailings pond. All the operating <br /> equipment will be housed in a weatherproof structure and the ponds will be covered by a <br /> protective structure to prevent freezing in winter. <br /> As excavation progresses down the length of a panel and enough room is created for <br /> equipment to operate, tailings will begin to be backfilled into the void of the mined area. <br /> Theoretically tailings will backfill immediately behind the mining operation. As the backfill is <br /> completed the surface will be smoothed to return the surface to as near original condition as <br /> possible. The topsoil will be returned to the surface and seed prescribed by BLM will be <br /> broadcast over the reclaimed surface at the rate prescribed by BLM. <br /> 1 <br />