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<br />M <br />MEMORANDUM <br />F= <br />G <br />consulting <br />scientists and <br />engineers MFG PROJECT: 180715 <br />TO: Bill Lyle, Idarado Mining Company <br />FROM: Jason Andrews and Sherm Worthington <br />DATE: November 23, 2005 <br />SUBJECT: Acid-Base Accounting Test Results -Pandora and Liberty Bell Soil Repository <br />Geochemical characterization (acid-base accounting) tests were conducted for Idarado Mining Company <br />(IMC) on materials excavated from the Idarado Legacy Development Property within the Pandora and <br />Liberty Bell Areas and placed in the repository at the Pandora Mill site in Telluride, Colorado. Materials <br />placed in the repository consist of native alluviaUcolluvial soils intermixed with mine and mill-related <br />beneficiation materials (primarily tailing with minor amounts of development or waste rock materials and <br />concrete debris and timber) generated in 2004 from excavation of underground utilities in the Pandora <br />Area and demolition of the foundation ruins at the Gold Run Mill Area, and excavation in 2005 of tailing <br />and mill-related debris in the Liberty Bell Area. As shown on Figure 1, the repository is located on the <br />existing Pandora Mill development rock pile, north of Highway 145 and west of Marshall Creek, adjacent <br />to the Pandora Mill facility. <br />The total volume of material contained within the repository is estimated to be 77,000 cubic yards based <br />on the amount of material existing in the repository in February 2005 and the additional material placed in <br />the repository from the Liberty Bell Area from April to October 2005. In February 2005, the repository <br />contained an estimated 40,000 cubic yards of material removed from the Pandora Area and the Gold Run <br />Mill Area based on the approximate azea of the repository surveyed by Foley Associates, Inc. An <br />estimated additional 37,000 cubic yards of material was placed in the repository from the excavation of <br />mill-related materials within the Liberty Bell Area from April to October 2005 based on 3,387, 11-cubic <br />yard dump truck loads of material transported to the repository. <br />MFC, Inc. <br />380! Autor~tian Way, Surte !00 <br />For! Collins, CO 80525 <br />Phone: 970-223-9600 Fax: 910-223-7/7/ <br />P:\100]ISUlitigalion\ABA ceding upJaccd-FVaI Ooc <br />