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• IIIIIIIIIIIIIIIIIII • S~ .-2~-``° APPLICATION FOR AMENDMENT OF 112 PERMIT NUMBER M-84-041 EXHIBIT D MINING PLAN I INTRODUCTION During the spring and summer of 1989, a development drilling program was conducted on the mining claims held by Eagle-Gypsum Products to determine which ore body is best suited for development to supply gypsum rock raw material to the Eagle-Gypsum wallboard plant to be completed in mid-summer, 1990. This drilling and assay work graphically illustrated the superiority of an area of approximately 45 acres located on the Steve and Jer claims in sections 32 and 33, T5S, R85W. Drilling of this area, coupled with surface outcrop mapping and sampling, indicate the ore body to be relatively consistent in quality and to be of substantial horizontal and vertical extent. This ore body is estimated to contain quality gypsum ore sufficient to supply the plant at full capacity and the Ideal Cement market for in excess of 20 years. The relatively gentle topographic character of the deposit lends itself well to the use of mechanical, continuous mining machines. The use of continuous mining machines for the extraction of gypsum ore will eliminate the need for drilling and blasting and will, therefore, reduce operating costs. This method also creates post-mining surfaces which will accommodate to reclamation more readily than standard quarry systems. The mining of gypsum for the plant and for shipment to Ideal Cement is currently under contract to Southway Construction Company. It is the intent of Southway to mine the gypsum with a Caterpillar model 750 Roto-mill. The Southway people have investigated the capabilities of this equipment with the Caterpillar company and have visited several sites where it is being used in the mining of sedimentary rock, including gypsum. The Colorado School of Mines, Earth Mechanics Institute conducted tests on large rock samples from the Eagle-Gypsum quarry. Data from these tests indicates that the model 750 Roto-mill will adequately mine the gypsum. II ORE BODY GEOLOGY AS IT RELATES TO PRODUCTION The structure of the ore body appears to be a synclinorium within the northern limb of the Eagle River valley anticline. The clastic sediments which appear to supply the structural support for the ridge peaks, appear to be dipping steeply in a southwesterly direction. An apparent bedding plane within the gypsum may be observed in the gulch at the southwest edge of the northern mining area. The apparent dip of this surface is approximately 40 degrees, northeasterly. The diastrophism which produced this configuration resulted in the super-thickening of the plastic gypsum horizons to a form which is better described as a "mass" than a stratigraphic horizon. -1- JEROME F. GAMBA & ASSOC. CONSULTING ENGINEERS