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Ms. Anne Beierle Page 4 September 12, 2002 Elevated Trestle at the Mill The elevated trestle at the mill consists of a series of bents and trusses upon which the conveyor is mounted (volume of the elevated trestle is estimated at 392,104 cu ft). Demolition of these elevated structures can be estimated in a similar manner to Con3 and Con9 structures, using the $0.13/cu ft unit cost. Foundations will be rubblized and buried in-place. The revised cost of trestle and foundation demolition at the mill is $55,898. See Appendix 6. Summary Individual components of the proposed Henderson overland conveyor system were analyzed and appropriate cost estimates based on real-life mine demolition experience were applied. The revised estimated cost of conveyor and support structure demolition is $280,673. Under areal-life demolition scenario, the conveyor components would have signif cant salvage value and the 3000 tons of steel supports (bents and trusses) would have appreciable scrap value. In the experience of EEE, at today's scrap prices the steel alone would be worth $40 per ton F.O.B. the jobsite, based on a 1997 demolition project at the Horizon Mine in New Mexico. The demolition of Henderson's overland conveyor system easily could be a "wash," under the circumstances where the demand for used conveyor systems is high and/or the price of scrap steel is high. References • Caterpillar Tractor Co., Caterpillar Performance Handbook, 28`h Edition. • Climax Mine Engineering Department, Summary of Contractor Bids for Demolition ofStorke Buildings, July, 1994. • K-II Directory Corporation, Contractor's Equipment Cost Guide, January 1995. • Kaess Contracting, Inc., Reclamation Estimate for Crystal Hill Mine, 4-12-97. • Frank Kem, ASI-RCC, personal communication, 11-20-97. • Jeff Mueller, Cypms Amax Coal-Ayrshire Mine, personal communication, 11-11-97 and 9-11-02. • Jack Purdy, Fluor Daniel, Inc., personal communication, 11-12-97. • Sherman and Howazd, L.L.C., Letter to Spray Systems of.4rizona, Inc. re: Contract Documents for Decommissioning and Reclamation of the Horizon Mine, Eddy County, New Mexico, 1-8-97. • Allen Sorenson, Colorado Division of Minerals and Geology, "Assumptions Necessary to Complete Preliminary Cost Estimate for Structural Demolition at the Climax Mine" Memo to File No. M-77-493. Colorado Division of Minerals and Geology, 4-27-97. • Steve Thomas, Wayne Gomez Demolition and Excavating, personal communication, 11-11-97.