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<br />Mc Gregg Squire <br />Division of Minerals and Geology <br />August 3, 1995 <br />Page 5 <br />Reclamation Costs <br /> <br />Connell will construct the reservoir liner concurrently with the mining of Phase Two. It <br />is their intent to complete the construction and reclamation of the liner azea shortly afrer <br />the completion of Phase Two. The purpose of mining a perimeter around the entire pit is <br />to install the liner in the early stages of the operation. This will allow Connell to reduce <br />their dewatering requirements in [he remaining phases of the operation. <br />We believe the majority of disturbance at this site will occur when Connell is in Phase <br />Three. There will be four areas of disturbance at this point in time. They are discussed as <br />follows: 1) Connell will be in the process of stripping, stockpiling, and mining material <br />from Phase Three; 2) Connell will have a cut face exposed on the interior portion of <br />Phase Two included as part of the reservoir. The liner installed on the west side (outside <br />of the reservoir) of the property will be completely buried or in the process of being <br />buried; 3) the east side of Phase One will contain an excavated pit, included as part of the <br />reservoir. The east, west, and south sides of this excavation will be sloped and seeded. <br />The north side will exist as a cut face until Phase Three has been completely mined; and <br />4) the west side of Phase One has been included as the forth area of disturbance. This <br />area will exist as a backfilled area of the mine. The processing equipment and product <br />stockpiles are assumed to be located here. <br />The costs to reclaim the four areas of disturbance has been accounted for in Exhibit L. <br />Overburden material from Phases 1, 2, and 3 will be used to backfill the west portion of <br />Phase One. It is estimated it will take 200,000 cubic yazds of material to backfill the west <br />end of Phase One. About half of the backfill material will come from overburden <br />removed from Phase One. A little more than a quarter of backfill material will come <br />from Phase Two and the remainder will come from Phase Three. <br />Test holes drilled on the west side indicate the sand and gravel deposit thins to the west. <br />Connell is not certain that mining the west end will be economical. If it is not <br />economical, backfilling might not be required on the west side of Phases Three through <br />Seven (which will proceed from west to east). Assuming backfilling is required, Connell <br />will use overburden removed from the east side to backfill the west side of the property. <br />We have modified the reclamation costs to include the filling and reclaiming of the land <br />where the settling pond will be located. <br />