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<br />Considering the potential for additional/unknown Factors of delay, it will be <br />necessary to begin road construction in the summer of 2003 in order to ensure a timely <br />transition of ore production to the new azea. The economics of a 2003 road construction <br />startup is currently being discussed within American Gypsum. <br />Upon completion of the access haul road the next stage of activity will consist of <br />early development and limited ore production at the top of the ore body. This phase will <br />take place in tight quarters and will not allow for afull-production operation Ore supply <br />for the wallboard plant during this time will require concurrent production from the <br />existing operation and the amended site for at least one year. <br />The final stage of development activity will be represented by full production <br />from the amended area and concurrent reclamation at the existing area, in accordance <br />with the reclamation plan on file. Maintenance/storage/office areas (Exhibit B-3) and <br />access to those areas used to support current operations will be retained for future <br />operational use. <br />Scheduling described reflects an ore production rate that equals wallboazd <br />production at full capacity. This reflects the most conservative basis for current planning <br />decisions that will ensure a timely transition into future operations. Market conditions <br />and wallboard demand within the next few years will dictate the actual rate of timing and <br />mining progression. <br />Access Road to Amended Area <br />Access into the area will require construction of approximately 1.2 miles of new <br />haul road. This road has been designed and approved to meet the standards of BLM, <br />DMG and the Mine Safety and Health Administration (MSHA), The access will continue <br />to utilize 3/4 miles of existing haulroad between Country Road #51 and the current <br />mining operation. At that point the new road will cross an unnamed ravine immediately <br />east of the existing permit boundary. Some cut will be required but the road will mainly <br />be constructed with non-gypsum fill material from the existing mine. The road will be <br />constructed on a schedule tied in with available fill from the current mining excavation. <br />Three years of activity is anticipated on this basis. <br />This approach will minimize pioneer cutting into the hillside. The first 0.6 miles <br />of the access road will be "life-of-mine". The remaining 0.6 miles are contained in the <br />orebody and will be excavated and reclaimed as mining progresses down dip. Layout of <br />the road design is included in Exhibits C-2, C-3, C-4 and C-S. Culvert design and detail <br />for the road are included in Exhibit C-6. Typical road section cut and fill detail is <br />included in Exhibit C-7. <br />4 <br />