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• <br />r <br />a <br />• <br />• <br />• <br />• A historic water right is owned. <br />• Experience gained underground in the Canbou and Cross mines has made it possible t~ select <br />locations for future underground facilities in areas with excellent ground support conditions. <br />• Heavy duty three phase public power is on site. <br />• The five mile gravel road from Nederland is maintained by the county. <br />Permitting <br />The company holds permits with the following regulatory agencies: <br />• The Division of Minerals and Geology, Colorado Department of Natural Resources, <br />1313 Sherman Street, Room 215, Denver, Colorado 80203. Mined Land Permit #M-1!)77-410 & <br />Explosives Permit #3-17. Bonding company: Travelers Insurance though Mazsh and ~~ompany, <br />Denver, Colorado. <br />• Water Quality Control Division, Colorado Department of Public Health and Enviromnent, <br />WQCD-PE-B2, 4300 Cherry Creek Drive South, Denver, Colorado 80246-1530. Permit number <br />CDPS CO-0032751. <br />• Mine Safety and Health Administration, MSHA, P. O. Box 25367, Denver, Colorado 80255- <br />0367. MSHA ID Number is: 0502730. <br />All permits are in full force and effect. The company is in full compliance with all permits at this <br />time. The company works on a monthly basis with Walsh Environmental Scientists acid <br />Engineers of Boulder, Colorado on filing its montlily water reports. <br />Exploration and Development Plans <br />Exploration and development work which will advance the project towards production has been <br />planned in detail and is outlined in Attachment I at the back of this report. A preliminary <br />analysis of costs and cash flow based on a modest increase in resources is included as <br />Attachment II. <br />5. <br />