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MINING PLAN <br />small pit contained within the existing permit area. This will then expand to include the <br />entire site. Significant portions of the pit will be backfilled as the mining proceeds with <br />most of the backfilling occurring in roughly the first third of the life of the phase. This <br />approach will eliminate the need to store large amounts of overburden on site. <br />It is estimated that the Phase 1 area will take approximately 10 years to complete. <br />However, that is only a rough estimate as market conditions will primarily determine the <br />life of Phase 1. If there is a downturn in demand then it may last longer, but if the <br />market is strong then it could take somewhat less time to complete. <br />The sequence of operation is shown on Exhibit C-3 and Exhibit C-4. In general, it <br />will start south of the plant, head southwest and then turn to the north and end in the <br />northwest corner of the phase. <br />Products to be Produced <br />The primary products to be produced at this site will be construction aggregates. <br />This includes gravel and sand. No incidental products are expected to be produced. <br />Precious metals (primarily gold) will not be extracted from the aggregate deposit. <br />Explosives <br />No explosives will be used in the course of conducting this operation. The material <br />to be mined is easily extracted with afront-end loader or similar equipment. <br />Geotechnical Stability <br />Stability of adjacent land is not an issue with this plan. The only location where <br />any concern with stability might exist is in the northwestern corner of the site where the <br />operation comes close to a high and steep slope leading up to US 50. The plan, as <br />presented here, requires that no operations be conducted closer than 200 feet from the <br />base of the slope (the permit and property line is at the base of the slope). In the event it <br />is later determined that mining can occur closer than 200 feet, that change will be made <br />in the plan. As this area is the last area to be mined (estimated 9 to 10 years in the <br />future) there seems little point in addressing this issue at this time. <br />Pueblo East Pit Amendment Exhibit D Page 12 <br />