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ANNUAL REPORT of THE PHIL SHERIDAN LODE <br />M-1988-081 Harry Covey- Owner, operator <br />Activity at the mine site was sporadic and did not involve mining as such. The removal <br />of dirt that the former lessee (East West Mining Inc.) filled into the adit was <br />accomplished with wheelbarrow and shovel. This was necessary to uncover the known <br />target area that was found in 1989 behind the hoist shed. The dirt is mostly a brown <br />decomposed granite sandy soil. The operator determined that it was best put to beneficial <br />use as a berm along the NW edge of the working area as a walk way from the shaft pad to <br />the equipment storage shed, rather than re-disturb the hill area which was reclaimed in <br />-past-years and-has stabilized-with a-nice grass covering. The berm-is approximately severs _ <br />(7) feet wide and two (2) feet high and is flat on top to make a smooth path walkway. <br />In addition to the adit work, steps were taken to insure that storm water was directed <br />away from the shaft to its natural run-off path. and maintenance of the infrastructure was <br />accomplished. <br />Since the issuance of a powder permit was referred to ATF, the operator has had no <br />explosives on the site. A powder permit is a necessary part of any mining operation and <br />must be obtained in the near future in order to proceed. <br />Plans for the future include but are not limited to the following: <br />(1) Obtain a powder permit from ATF <br />(2) Take any steps necessary to insure a safe mining operation in the target area, <br />(3) Where and when possible, alternate methods of fracturing rock such as RockTek <br />RocKracker will be tried or the silent explosive, hydraulic calcined compounds. If <br />they work we will incorporate their use in our plan. The minerals, calaverite, <br />sylvanite and other tellurides are very heavy and delicate. Shock blasting is not a <br />good way to preserve their integrity. <br />If MLR has any information on the success of these other alternate explosive methods, I <br />would be interested in receiving the information. <br />Harry D. Covey, Owner Operator.