2008-11-21_REVISION - M1978222UG (21)

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As shown on the map, the natural drainage is from upslope is away from the pit and this configuration will be maintained. The only water will be the result of limited precipitation. The overburden stockpile will effectively prevent any run-on of precipitation from upslope. A berm will be constructed to direct any potential run-off from the ore pile to the floor of the former Monogram Pit which is in effect a sediment pond constructed in the low lying area with a 3 ft high berm maintained at the west end above the area of pre-existing waste rock (see Map C-2). As each section of ore is removed, the adjacent barren cap rock will be placed in the excavated area and restoration will be concurrent with mining. Surface drainage of the mine will continue to be toward the eastern berm and that berm will be raised and/or extended to maintain function for water retention and as a silt trap. When all the surface ore is removed, the waste rock will be graded across the disturbed area to match natural contours and a grade of less than 3:1. The minimal stored topsoil will be spread and re-vegetated. 3. Exploration The second phase of operations for the permit will be exploratory in nature. Nuvemco will explore old mines and workings in the area. Many of these old mines utilized tracks and ore carts for removing ore and muck, often focused only on mining the highest grades of ore. Others were small one- or two-man operations that removed only very high grade ore such as fossil logs that were replaced by uraninite (pitchblende). Most mining operations stopped when the mills shut down, potentially leaving significant uranium and vanadium resources in the ground. Concurrent with the evaluation of old workings exploration boreholes will be drilled on existing roads and trails throughout the permit area to evaluate subsurface ore potential. Based upon the results of these exploration efforts, the Monogram Mine permit may be amended to include any additional surface or underground mining plans. 4. Surface Facilities As illustrated on Map C-1, surface facilities on the permit will be modified shipping containers (C-Cans). One will be used to store supplies, ATVs, equipment, and the other as office trailer. The facilities may be expanded if the exploration efforts are successful and a technical revision of the permit will be prepared and submitted at that time. Parallel to and slightly south of the southern permit boundary is a power line owned by San Miguel Power Association which supplies electricity to the top of the Monogram Mesa including previous, planned, and existing mines in the area. A power supply may be brought in from the power line to a drop pole erected at the office. There are no other utilities within 200 feet of the permit boundaries. A portable toilet facility will be located near the office trailer. The C-Cans are located on a barren flat spot; about 200 ft by 250 ft, in the northwestern part of the proposed permit area. A concrete pad with ore bins will be constructed on the south side of the staging area for ore stockpiles and grade control. (See Photograph 6 for location and Map C- 1 for drawing of bins to be constructed) The surface facilities on the Monogram Mine 112d Permit area will include the following: • overburden stockpile • two C-Cans modified for storage and office use Monogram Mine - November 2008 D-3