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• WESCO <br />3191 So. valley SI <br />SIIIIC I S`. <br />Sill LdV.v CII y, Ul~tll I hFi 81109 <br />7clop hrll lit (A01) d81 ttSSi <br />Tr'IoI.IA 01111 4A-1'c/'u <br />December 18, 1942 <br />Oak Ridge Energy, Inc. <br />3375 South Bannock - Suit 210 <br />Englewood, CO 80110 <br />Att: Darry Ferguson <br />Dear hlr, Ferguson <br />Your Durango property is an interesting endeavor and we at Wesco <br />are excited to be able to bid on this project. <br />Cast blasting of sandstone/shale formations is something that we <br />• are experienced with at Wesco. At this time we are supplying the <br />powder and ttre technical expertise for three Utah International <br />Mines in and around Farmington, New Mexico, as well as the Peahody <br />Mines in Arizona, Colorado, and Montana. We also handle the <br />Pittsburg and Midway Mine at Window Rock, Arizona. All of these <br />mines are casting in some, if not all of their pits. <br />For casting to be effective, the depth of the holes must be at <br />least JS feet. Darry, you have indicated that your bench hight <br />will be approximatly 200 feet. By taking advantage of the depth <br />and shooting the longest possible shot we should be able to aquire <br />a 50~-55~ cast. <br />The swell factor in sandstone generally runs about 1.25 on a <br />project of this nature, <br />We will be using a 12 1/4" bore hole and loading them with a <br />heavy density product. Dry holes will recieve a product with a <br />density of 1.20, while wet holes will recieve a product with a <br />density of of 1.35 up out of the water; the remainder will recieve <br />a 1.20 density. The powder factor figures out to be approximatly <br />1.15 pounds of powder per cubic yard. <br />The bottom line is that we feel confident we can do this project <br />for 10.2 cents per cubic yard. <br />. 700,000 cubic yards x 10.2 cents = $71,400.00 <br /> <br />