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<br />SMUGGLER MINE SITE <br />C-2.0 Geology <br /> <br />S (~ EXHIBIT C <br />The Smuggler Mine workings are located principally along a series of steeply dipping shale <br />and dolomite beds. The principal ore host is the Red Cliff Dolomite member of the Mississippian <br />Leadville Limestone, which forms the footwall of most of the mine workings. The Belden <br />Formation (sometimes erroneously referred to as Weber Shale) forms the hanging wall of most of <br />the mine workings. Ore was deposited in shoots and beds (mantos) along the contact of these two <br />formations. It is now evident that faulting played an important role in the localization of the ore <br />bodies. Intersections of the contact and pre-mineral age cross faults have been the most productive <br />zones. There are several other zones, however, that show promising mineralization. <br />The Smuggler orebody is contained in a sedimentary breccia at the top of the Red Cliff <br />Dolomite member of the Mississippian Leadville Limestone. The breccia represents a significant <br />erosional event of early Mississippian age (approximate 345 million years ago). Smaller amounts <br />of primary base-metal (Pb-Zn) ore are present in a much younger solution collapse breccia at the <br />base of the Pennsylvanian $elden Fonnation, which overlies the Leadville, and in unbrecciated <br />calcareous and carbonaceous shales and limestones of the Belden itself. Fragments of the Laramide <br />Aspen mountain sill are present in the second breccia, so this breccia is younger than the sill, which <br />is between 69 and 74 million years old. The Della S.-Smuggler fault system, a series of normal <br />faults that strike northwesterly and dip to the southwest at 30° to 55° and which cut the Aspen <br />mountain sill, is frequently mineralized. The Smuggler orebody is thickest at the intersection of <br />these faults and the earlier breccia at the top of the Red Cliff Dolomite. <br />C-3.0 Mine Plan <br />Mining activity on the property in the foreseeable future will consist of nominal mine <br />rehabilitation, development and exploration, and extraction of wire silver and mineral specimens. <br />The intent in obtaining this permit for the immediately foreseeable future is to allow for a minimal <br />increase in mine development. The planned development will serve the dual purpose of opening <br />more of the mine for public tours. <br />The primary metal available for extraction is silver. Lead and zinc are secondary metals that <br />might be produced. Small quantities of gold may be encountered. <br />C-3.1 Mining Methods <br />Mining will be done by conventional underground drilling and blasting techniques. There <br />are several horizons from which ore will be mined, Although there are vast quantities of low grade <br />ore available, the operator intends to explore for and mine higher grade ores from narrow, high-grade <br />veins. Typically, drifts will be established or existing drifts rehabilitated along targeted ore zones. <br />Ore passes will be established at appropriate intervals and stoped up. Sloping methods (either open <br />or square set) will depend on the condition of the hanging wall. <br />- 17 - SMUGGLER MME SITE <br />