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very significant gains during 2007. Removal of grazing, as discussed later, has helped a great deal in <br />this expansion. <br />MINING ACTIVITY IN THE LAST YEAR: <br />Depth of mining - In the last yeaz, mining depths were extremely variable due to the <br />spotty and highly variable configuration of the remaining sand. In many instances, mining <br />depth was quite deep, but also lazge amounts of overburden and waste were generated. The <br />waste is mostly located near the plant and comes from pond cleanings. Soils were <br />exceptionally deep in some places which generated large volumes of soil for backfilling. <br />Much of this soil is from deeper horizons and therefore of limited value for reclamation uses <br />other than for filling. <br />2. Backflling - Backfilling of mined areas has increased in the last yeaz as a result of <br />reaching the edges of deposits. As described in the plan, mining continues in a deposit until <br />the mining limit is reached or the deposit ends. As described previously, in the last year <br />deposit mazgins have been abrupt and show an unusual configuration that seems to reflect <br />what may have been a period of intense erosion that generated high banks that were <br />subsequently buried. <br />A. Depth of backfilling - As shown in the photo pages, one area is receiving fill depths <br />in excess of six feet. This, however, was somewhat unusual in that at this location <br />there was a lazge amount of overburden and subsoil available. In other locations, pond <br />cleanings have been hauled into areas needing backfilling, but few of these azeas have <br />actually been graded. The mean depth of this waste material is about four feet. <br />B. Material used in backfilling - Most of the backfilling done has used overburden <br />and subsoils stripped from the site where the filling is being done or at least sites that <br />were near enough to the backfilling that it is still considered to be original material. <br />This is consistent with the method of operation described in the plans. Other sources <br />of material include wash fines from processing plant pond cleaning. <br />C. Maximum, minimum, and average slopes - Although most of the slopes where <br />filling is being done are not yet finished, slope gradients are shallow to moderate and <br />close to 5:1 or less steep. As these slopes are finished a better assessment of final <br />slopes can be made. <br />D. Deviation from original elevation for new backfllled land - Deviations from the <br />original elevation appeaz to be within specifications, however, because the slopes aze <br />not yet finished it is hazd to tell exactly what the deviation is. <br />Processing facilities - Little has changed at the processing facility in the last year. <br />However, because some of the material being mined is a bit dirtier than has been the case in <br />the past, larger amounts of wash fines aze being generated. Although this makes processing <br />Status report for 2007 (July 15, 2007) Page 6 of 12 <br />