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mining plateau simultaneously. Early production from this initial area will not lend itself <br />to afull-production operation due to limited working space. In order to accommodate a <br />full production ore scenario, it will be necessary for this new development to take place <br />concurrently with phased out ore production and reclamation at the existing mine. The <br />time period for this concurrent production requirement is estimated to be at least one <br />year. <br />Initial excavation in Stage A will require utilization of a small valley fill for part <br />of the non-gypsum rock as illustrated on the Mining Plan Map. Some of the waste rock <br />will also be used to widen the access road to full width. When the ore is depleted from <br />Stage A it will be backfilled with waste rock from Stage B below it and Stage A will be <br />resloped and reclaimed in the manner described below in the Reclamation Plan section. <br />This progression of events will continue down dip and through the mining stages. <br />The southwesterly dip and depth of mineralization of the ore body is well suited <br />for this type of mine and reclamation plan. With the concurrent reclamation concept, <br />disturbed acreage will be minimized and the non-gypsum rock will be beneficially <br />utilized in the reclamation plan. Total mine area and mine support infrastructure is <br />designed for containment in a very compact footprint. Average area of the active mining <br />stages throughout the life of the operation is 14.3 acres. Maximum affected area of 35.4 <br />acres occurs at the end of Stage B (Table 1). Affected acreage at this point will include <br />the active mining plateau, treated and un-treated sections of haul road, sedimentation <br />ponds and pond access, topsoil stockpiles and the existing gypsum rock stockpile at the <br />intersection of County Road 51 and the mine road entrance. <br />The continued use of rotomills in the mining method will be used in lieu of <br />conventional drill and blast mining procedures. It is anticipated, however, that small <br />zones of anhydrite (CaSO4) will be encountered within the gypsum ore, as is the case of <br />the current mining operation. The anhydrite zones represent a problem for rotomill <br />extraction due to the increased hardness and compressive strength of anhydrite compared <br />to gypsum. The rotomills cannot effectively cut anhydrite so there will be a need to drill <br />and blast anhydrite zones and rotomill back through the blasted zones. Experience in the <br />current operation has called for a blasting every one to two years. <br />Production capacity from the mine is estimated to continue at the approximate <br />rate of 600,000 tons of gypsum rock per year. This amounts to plant truck delivery in the <br />current average range of 90-100 trucks per day on a five-day per week basis. <br />Reclamation Plan (Landscape Plan) <br />DMG has reviewed and approved the mine reclamation plan in accordance with <br />standards set forth by state law stipulated in the Colorado Mined Land Reclamation Act. <br />The reclamation plan is integral to the mining plan because there is a need to dispose of <br />non-gypsum material as mining proceeds. As described above in the Mining Plan section, <br />this non-gypsum material from each successive mining stage will be backfilled in the <br />area of the depleted stage above the area of excavation. The mining plan will utilize the <br />6 <br />