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<br />EXHIBIT B - MINING PLAN <br />The proposed Incas mining operation is located approximately <br />10 air miles northwest of Durango, Colorado. Highway access <br />to the property is via U.S. Highway 160 from Durango to <br />Hesperus then north to May Day by La Plata County Road 124. <br />Just north of May Day a deep trail intersects County Road 124. <br />This trail, which crosses both U.S. Forest Service and <br />private lands, leads to the Incas Mine site near the crest of <br />Ohwiler Ridge of the La Plata Mountains. This trail is <br />accessible seasonal]y, usually from mid-June to late Dctober. <br />The property lies within the La Plata Mountains which are <br />located along the southwestern flank of the San Juan Mountains <br />uplift. The La Plata Mountains rise abruptly and form <br />extremely rugged, narrow divides at the higher elevations with <br />steep canyons radiating away from the high peaks. <br />Specifically, the Incas Mine complex is located on the <br />southwest face of Ohwiler Ridge at the 10,600-foot elevation <br />contour (See map - Exhibit A). <br />Lode mining began in the California Mining District of La <br />Plata and Montezuma Counties in 1874 after the discovery of <br />placer gold on the La Plata River. The history of mining in <br />Little Deadwood Gulch began in the early 1900's with the <br />staking of the Helen Claim followed by the Gertrude, Cathyrn, <br />and May Day Claims. The Incas and Unexpected Lode Claims were <br />surveyed on April 1 and 2, 1904. The Van-Emmett Gold Mining <br />and Milling Co. obtained patents later that same year. In <br />1907, The Van-Emmett bold Mining and Milling Co. was awarded <br />patents for Incas No. 1, Oriental, Incas No.2, Incas No.3, <br />Northern Slope, Unexpected No.l. Unexpected No. 2, Unexpected <br />No. 3, Great Divide, Great Divide No.l, Great Divide No.2, <br />Mother knight, and Moonlight Mineral Lade Claims. <br />The May Day and Idaho Mines were the largest producers in the <br />Gulch. Considerable development also occurred on the Incas <br />and Unexpected Claim blacks. Surface development at the Incas <br />consisted of numerous adits, tunnels, and prospects. The most <br />extensive development occurred underground from the Upper and <br />lower Combination, and Avery Tunnels. The aggregate length of <br />the workings is approximately 2,000 feet and three stopes. <br />Mining activities began in 1904 and were probably continuous <br />for the next several years. After that mining activities have <br />occurred on a periodic and intermittent basis. The most <br />recent investigations occurred in 1982 and consisted of taking <br />some grab samples of the waste rock dumps, prospect pits and <br />the cut along the roadway. <br />Most of the historic mining record at the Incas is documented <br />by approximately 20 waste rock dumps, a number of prospect <br />pits, several adits and associated tunnels, and an ore load <br />