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2- 3 <br />As previously noted, exploration mining during the initial permit terms was conducted as an <br />underground operation, utilizing typical underground coal mining equipment. These efforts to <br />accumulate the information necessary to develop comprehensive mining plans have reduced <br />surface impacts associated with road construction and drilling operations. These activities will be <br />ongoing throughout the life of the mine. <br />2.1.2 Life of Mine <br />The life of the McClave Canyon Mine will depend on the amount of coal sold as well as the <br />geologic conditions that are encountered. The mining projections indicate that there aze sufficient <br />reserves to mine for at least 12 years at the current quality projections. Planned exploration to the <br />west of the existing mine and within the graben may contribute additional reserves and add years to <br />the life of the mine. Additionally, underground exploration methods may prove that economic <br />reserves exist in other seams within the permit area, see Section 2.1.6. <br />Mc Volume 1 October 17, 2001 <br />