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Much of this permit area was previously dredge mined by a dry land dredge on tracks and fed <br /> by a 1 cubic yard dragline. The source of the process water is an unknown. A side delivery <br /> conveyor belt dumped the tailing on the adjourning, unmined land. Apparently little topsoil was <br /> saved in the dredging operation. When the mining in the permit area reaches this dredged <br /> ground, the previously mined material will be reprocessed. When buried topsoil is exposed it <br /> will be stored for reclamation and the mining will proceed as in the previous panels. <br /> The Timberlake Gold and REE Placer Mine deposits are largely unconsolidated to poorly <br /> consolidated sand and pea gravels originally deposited as stream terraces and braid-bar <br /> deposits. They are easily broken by backhoe or track hoe and wheeled bucket loaders. <br /> Therefore, we anticipate the mining operation to be very similar to that of any standard sand <br /> and gravel quarry operation. Materials can be easily mined and trammed by standard, easily <br /> obtained rubber tired or tracked earth moving equipment. Movement of materials from the <br /> point of mining to stockpiles and/or the wash plant can be easily accomplished by articulated <br /> 25-ton dumps, field conveyors, and radial stackers (to stockpile). Similarly, tails from the wash <br /> plant can be easily moved by wheeled loaders and used as backfill in previously mined areas of <br /> the open cast pit(s). <br /> The Timberlake Gold and REE Placer Mine is to be operated essentially in the same manner as <br /> would a standard sand and gravel quarry operation. In this respect because the materials to be <br /> mined are unconsolidated to moderately consolidated, recovery of the mineralized deposits <br /> during mining is anticipated to be 100%. with a 15% swell factor (BCY to LCY). Mill/processing <br /> plant recoveries are expected to be 80% or higher and are factored into the production <br /> schedule. <br /> The design of the anticipated open cast pit is envisioned to be similar to that originally <br /> permitted by the previous mine owners and operators Jubilee Venture LLC. More detailed <br /> mine/pit design may be necessary after analysis of new data from anticipated new borehole <br /> drilling and assays. Initial pits will be no greater in depth than 15 to 25 feet and pit walls will be <br /> kept to 12.5 foot steps to avoid slope failure and caving of in situ materials to as great an extent <br /> as possible. Mining will be done via panels up to 1000 feet in length and 200 to 500 feet in <br /> width. The panels will be oriented parallel to depositional strike of the original terrace and <br /> braid-bar deposits to optimize recovering of contained minerals within the braid-bars. <br /> Overburden if such exists will be removed by scraper and stockpiled for later infill and <br /> reclamation of the open cast pit(s). <br /> Unit operations are anticipated to be those standard in any sand and gravel quarry operation. <br /> Topsoils, barren waste materials, and previously processed tails materials such as those left <br /> over from the El Dorado Mining Company's ca. 1937-1939 dredging operations will be moved <br /> and stacked by articulated scraper(s) as necessary and stockpiled for reclamation purposes or <br /> later beneficiation via accepted and environmentally safe methods. Gold- and REE- bearing <br /> materials from freshly opened ore faces will be mined and moved by rubber-tired or tracked <br /> bucket loaders to either articulated 25 ton dumps or to strategically placed hopper-loaders as <br /> feed to field conveyors. Material transported via the dumps and/or field conveyors may be <br /> 2 <br />