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VA Yeh and 1 <br />Consulting Engineers & <br />May 29, 2008 <br />Mr. Collin Stewart, P.E. <br />Bowie Resources, Limited <br />P.O. Box 1488 <br />Paonia, Colorado 81428 <br />Inc. <br />Project No. 28-024B <br />Subject: Subsurface Investigation, Mud Pit Embankment, Hubbard Creek Shaft at Bowie <br />#2 Mine, Paonia, Colorado <br />Dear Mr. Stewart, <br />This report presents Yeh and Associates, Inc. subsurface investigation of the mud pit <br />embankment for temporary containment of drill fluid and spoils at the Hubbard Creek Shaft site <br />for the Bowie #2 Mine near 'Paonia, Colorado. Our scope consisted of a subsurface <br />investigation of the existing embankment and included drilling of exploratory borings along the <br />crest of the embankment, site reconnaissance and laboratory testing. <br />PROJECT DESCRIPTION <br />A mud pit was constructed at the Hubbard Creek Shaft site. Plans provided indicated a <br />pit volume of 1,467 cubic yards and a berm height of around 10 feet. Plans also indicated a <br />steep face or roadside profile with grades slightly steeper than 0.5H:1 V. Mud pit side profiles <br />indicated more gentle grades between 1.5H:1 V and 2H:1 V. The mud pit will be lined, and plans <br />indicated a maximum fluid level within 3-foot of the crest. <br />PURPOSE AND SCOPE <br />The purpose of our investigation was to explore and evaluate subsurface conditions of <br />the existing embankment materials. <br />Yeh and Associates' scope of services included: <br />• The drilling of exploratory, borings on top of the existing embankment. <br />Laboratory testing of selected samples obtained during the field exploration to evaluate <br />relevant physical and engineering properties of the soil. <br />SUBSURFACE CONDITIONS <br />Two test holes were drilled along the crest of the existing embankment. Subsoils <br />encountered consisted of silty, clayey fill underlain with sandy clay and clayey sand interlayered <br />with sandstone bedrock fragments (Figure 1). Fill depths encountered were 7 and 5 feet in <br />borings TH-1 and TH-2, respectively. Fill samples tested had 7 to 34 percent fines (material <br />passing the No. 200 sieve). Atterberg limit testing on the fill samples exhibited liquid limits of <br />non-liquid to 31 percent and plasticity indices of non-plastic to 15 percent. One natural clay <br />5700 East Evans Avenue, Denver, CO 80222, (303) 781-9590, Fax (303) 781-9583 <br />170 Mel Ray Road, Glenwood Springs, CO 81601, (970) 384-1500, Fax (970) 384-1501 <br />570 Turner Drive, Suite D. Durango, CO 81303, (970) 382-9590, Fax (970) 382-9583