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OXBOW MINING, LLC <br />NOTICE OF INTENT FOR 2007 <br />4.0 DESCRIPTION OF LAND TO BE AFFECTED <br />The area where the proposed exploration activities will occur includes portions of the Beaz Creek <br />and Hubbard Creek drainages located on the north side of the North Fork of the Gunnison River. <br />Elevations in the immediate vicinity range from approximately 6,000 feet to 7,600 feet above <br />mean sea level (amsl). The area is semi-and with annual precipitation of approximately 17 <br />inches. Soils vary in thickness from 0" on steep side slopes and rock outcrops to possibly 2' - 3' <br />in drainage bottoms. Due to the general steepness of the terrain, the drainage bottoms often <br />contain a high percentage of rocky materials deposited by erosional and/or frequent mass <br />wasting processes. Vegetation on the lower elevations and slopes is predominantly a mixture of <br />a mountain shrub community dominated by Gambel's Oak and Juniper woodland. Along the <br />creeks, above approximately 7,000 feet in elevation, some dispersed Douglas fus are found. <br />Higher elevations contain stands of Aspen. The Beaz Creek drainage is a characteristic <br />ephemeral drainage with flows occurring in response to spring snowmelt and runoff from major <br />rainfall events. The Hubbazd drainage is a perennial drainage influenced during the irrigation <br />season as the recipient of atrans-mountain water diversion . <br />5.0 DESCRIPTION OF DRILLING AND RELATED ACTIVITIES <br />Exaloration Access -The drill sites will be accessed from existing two track ranch roads and <br />existing light-use methane drainage access roads that extend up Beaz Creek canyon and further <br />onto the upland slopes of the drainage basins. The existing road alignments will not require <br />modification. Required road maintenance will generally include grading the road to provide a <br />smooth operating surface, clean-out and repair of any existing drainage structures and <br />application of temporary drainage control measures (berms, straw bales, silt fences, gravel <br />surfacing, etc.) as necessary. As shown on the attached map and the table below, new, <br />temporary road segments range from approximately 1,400' to 4,400' in length for a total <br />estimated combined distance of 17,200' (3.26 miles). New light use road construction will <br />consist of side-cast construction, field fitted as conditions require. <br />All new road construction has been cleared for cultural resources, T & E and sensitive species. <br />The new road construction will be obliterated and reclaimed. <br />Drill Site Construction -The seven (7) holes proposed in this 2007 exploration program can be <br />summarized by the following information: <br />Reopened <br />Site # Surface Status New Road Road/trail Hole Depth <br />1 ECM-XX-46 BLM PLAN None 0' 1,430' <br />2 ECM-XX-61 BLM PLAN 1550' 0' 850' <br />3 ECM-XX-62 BLM PLAN 3850' 0' 650' <br />4 ECM-XX-63 BLM PLAN 4400' 0' 1,140' <br />5 ECM-XX-64 BLM PLAN 1400' 0' 800' <br />• Page 3 <br />