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MILL SITE <br />For the majority of the permitted year the mill remained inactive while completion <br />of the mandated second exit at the mine progressed. Once the second exit was <br />completed, limited shipments of ore to the mill began in April, 1999. To date, the <br />company has trucked into the mill site and processed approximately 250 tons of ore. The <br />mill has been operating on a limited, trial basis while fine-tuning procedures and <br />equipment. No new surface disturbance has occurred during this permit yeaz. <br />Plans at the mill site for the upcoming year include bringing the mill online to <br />reach a capacity of 100 tons per day, resulting in an increase in tailings disposal volume. <br />Plans to accommodate this higher volume include raising the tailings dam and <br />compacting fill dirt used. This project will not increase the area of disturbance yet will <br />meet the company's needs during [he upcoming year. Construction of an assay office at <br />the site is also planned. Total disturbance at this site is projected to be limited to <br />approximately 700 sq. ft. <br />No reclamation work has been necessary to date due to the lack of activity at the <br />mill site. Plans are [o become fully operational this permit year with work continuing on <br />a full-time basis. <br />