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~• <br />Page -2- <br />MLRD Letter <br />Mr. Carl Mount <br />October 20, 1993 <br /> <br />9. The facility would be run at the rate of 50 to 75 tons per day on a sporadic basis. <br />The circuit is bulk flotation only. We would grind to an average of 120 mesh. Separation <br />would be by flotation only using yarmor f pine oil and sodium isopropyl) xanthate: Z 11. <br />The pH of the mill water would be kept at +9 with lime and or soda ash. <br />l0. Bulk concentrates would be dried inside in concrete lined totally enclosed bins. <br />The bulk concentrates would be shipped via truck to the Cominco Smelter at Trail British <br />Columbia, Canada. <br />11. The expected ore grades would be: gold .35 oz./tn. silver 2-5 oz./tn lead .5 to 1.0 <br />zinc .5 to 3% copper .10%. The mill recovers 94% of the gold, 90% of the silver, 99% <br />of the lead, zinc and copper. The host rock is quartz and quartz monzonite. The ore <br />minerals contain no cadmium, bismuth, antimony, arsenic or mercury. The ore is }ugh in <br />calcium running between 1 and 7%. This is a very clean ore. <br />12. We would engineer and design a tailings pond area to receive up to 15,000 tons <br />per year of our sand. The water would be evaporated. Final reclamation would see us <br />cover the sand with dirt and soil and vegetate the area with native grass and trees as was <br />done in 1987. A detailed engineering plan would be presented with our permit <br />application. I believe the site would pose no environmental concern to anyone. Our <br />neighbor on three sides is Public Service Co. of Colorado. Our neighbor to the north is <br />Keeter Trucking Co. who provides our trucking services. Trucking to the facility from <br />Caribou would average less than five truck loads per day over county and state roads. <br />14. I would manage the operation and make sure it was run in compliance at all times <br />with the terms of a new permit. The facility would be kept neat and clean and we would <br />resume the practice of hosting educational tours for school groups and government groups <br />as we did in the past and continue to do at the Cross gold Mine. <br />15. We currently have no ownership in the property nor do we have a lease on the <br />property. We have to negotiate a new lease and or purchase option with the current <br />owners Tusco, Inc. of Commerce City, Colorado. <br />16. If we do acquire the facility and obtain the proper permits and complete the <br />necessary mechanical improvements we would employ 10 full-time employees from the <br />Boulder area. <br />