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<br />_1 <br />` SAN LUIS PRD,IECr ~ III'IIIII'll"~'II' ,: <br />• ., March 1991 sss <br />Activities and Achievements <br />No injuries this month. MSHA inspected the site, very favorable with no <br />citations. implemented lock out procedure. <br />Mined total short tons 381,954. Ore hauled to stockpile was 111,293 s.t. <br />at .051 Au (drill sample assay). Waste rock was 151,861 s.t. and Topsoil <br />removed was 118,800 s.t. <br />Started the mill 3/14/41 with many material balance problems. After <br />addressing these automation and mechanical challenges, it appears the <br />plant will handle design. <br />Milled 54,576 dry short tons assuming 4% moisture. Head grade at cyclone <br />u/flow was .041 Au oz/st. Tails avg. .009 Au oz/st. Giving us an avg. <br />start up recovery of 78.05%. Estimate 1,746 Au oz/st in solution. (based <br />on monthly composites) <br />Continued to refine ore control sampling and assaying. Sent duplicate <br />samples out to BM lab and 3rd party lab for confirmations. <br />Completed MLRD annual report. Reported augmentation plan to Coloaado <br />Division Water Resource Engineer. Attended final arguments in Water <br />Court for our final decree. <br />Attended The Trinchera Irrigation Company's annual board meeting. <br />Installed all flow totalisers and power meters on all wells on the farm <br />to comply with decree. <br />Sent 41576 D8K crawler out for major rebuild. Continued to push fbr <br />better availability of mining equipment. <br />