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some brush and shrub removal may be required at select locations. Drilling equipment will use <br />existing roads, trails or open areas so that no new roads need to be constructed. <br />The boreholes and preliminary locations are numbered and shown on Maps C-1 and C-2. Phase <br />1 would include about 182 boreholes numbered 91 through 272 located predominately in the <br />sage flat east and south of Last Chance Mine. These boreholes will be drilled on parts of the <br />Last Chance #1 and #2, and Bull Durham claims. <br />Phases 2 and 3 are interchangeable in the order to be drilled and are also shown on the C-Maps. <br />Phase 2 includes 86 holes (nos. 273 to 358) to be drilled on the Bull Durham and Pam claims <br />with a disturbed area of about 1.2 acres. Phase 3 includes 90 boreholes (nos. 1 to 90) to be <br />drilled on the northern parts of Last Chance claims #2 and #3. <br />Note that the number of boreholes to be drilled according to this exploration plan is a maximum <br />with fewer anticipated based on results. Also the locations plotted on maps are approximate to <br />be determined in the field based upon surface conditions and vegetation; i.e. holes may be moved <br />somewhat to avoid disturbing vegetation where possible. Actual locations will be surveyed <br />subsequent to drilling. <br />As shown on the photographic base of Map C-4, many old drill trails are present and frequented <br />by recreational four-wheelers and ATVs. Nuvemco plans to drill exploratory holes along many <br />of the roads and two tracks to evaluate geology and uranium-vanadium mining potential across <br />the permit area. Initial drilling will probably be on 100 foot centers. Based upon results of <br />geophysical logging, closer spaced holes may be drilled in some areas. Although the potential <br />exists to drill 358 exploration boreholes, reclamation will be concurrent with drilling and no <br />more than 50 holes will be drilled in any phase prior to reclamation. Drilling should be a one <br />time event - drive rig along existing road/trail/clearing - drill hole - pull rig off (generally <br />forward 50 to 100 ft) - pull up logging truck - geophysically log hole - logging truck follows rig <br />- pull up with pickup and crew to P&A hole and reclaim site - move to next site. <br />4. Surface Facilities <br />As illustrated on the C-Maps, surface facilities on the permit will include an office trailer <br />(modified shipping containers or C-Can). The facilities may be expanded if the exploration <br />efforts are successful and a technical revision of the permit will be prepared and submitted at that <br />time. A power supply may be brought in San Miguel Power Association from the power line to <br />a drop pole erected near the southern vent/escapeway. There are no other utilities within 200 <br />feet of the permit boundaries. A portable toilet facility is located near the office trailer. <br />Nearly all of the proposed surface disturbances are on land which was previously disturbed and <br />in some cases reclaimed by preceding mining operations. These are on public BLM lands and <br />accessed by public Montrose County roads; most of the roads and trails have been in continuous <br />use for recreation, 4-wheeling, hunting, camping, etc., and are currently disturbed. <br />5. Surface Mine Equipment <br />Last Chance Mine -April 2009 <br />D-3