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• Site Development - Exploration Access: Primary access to the proposed exploration area will be via <br />existing Routt County Road 27, southeast of Hayden, Colorado. As shown on Map 1, existing Routt <br />County Roads 27, 27A, 51 C and 51 D, as well as, existing graveled coal mine haul roads and <br />unimproved ranch roads and jeep trails will be utilized to access exploration drill-sites within the <br />exploration area. Sage Creek has specifically sited proposed drill-sites adjacent to existing roads and <br />in areas of previous disturbance in order to minimize any new disturbance associated with the <br />proposed exploration activities. <br />There may be limited instances where direct access to a proposed drill-site is not possible using the <br />existing road network. In these circumstances, drilling equipment will be moved overland the short <br />distance between the existing roadway and proposed exploration pad without constructing a new <br />road. In accordance with Rules 2.02.2(2)(f) and 4.21.4(3xa), vehicular travel on other than <br />established graded and surfaced roads will be limited to that absolutely necessary to conduct the <br />exploration. Travel will be confined to graded and surfaced roads during periods when excessive <br />damage to vegetation or rutting of the land surface could result from such travel. <br />Site Development - Drill Pad Construction: The selected drill-sites are located on gentle slopes or <br />bench areas to minimize grading requirements. Maximum drill pad dimensions will be 100 x 100 <br />feet. However, Sage Creek anticipates minimizing the disturbance footprint to the smallest area <br />possible to facilitate reclamation success. Based on observations by Sage Creek and CDRMS <br />representatives in August 2008, in many instances, it may be appropriate to only disturb the <br />immediate area surrounding the proposed drill hole and the accompanying mud pits. <br />Construction will be conducted in accordance with Rule 2.02.2(2)(f) and 4.21.4(5). Prior to earth- <br />moving or excavations of any type, the A and B horizons will be salvaged and stored in an area that <br />will be undisturbed and not subject to excessive wind or water erosion. At sites that have been <br />previously disturbed by agricultural or mining activities, if there is no distinction between the A and <br />B horizons, the topsoil will be salvaged as a single unit (letter from CDRMS to Mr. Scott Cowman, <br />dated October 6, 2008). The underlying subsoil materials will, if necessary, be salvaged and stored in <br />an area separate from A and B horizon materials. After stripping and stockpiling the topsoil/subsoil <br />materials, minor grading will be completed to establish the drill pad and accommodate the drilling <br />and support equipment. Runoff and sediment contributions from the soil material stockpiles will be <br />controlled through placement of a silt fence or soil berm (approximately one foot in height) <br />downgradient from the stockpile(s). <br />Mud pits will be constructed within the graded pad area. Generally two or three pits are required, <br />with typical pit dimensions of 10 feet x 5 feet and 6 feet deep. The size of the required pits is <br />dependent on the anticipated drilling depths and conditions. Materials excavated from the pits will be <br />stockpiled on the margins of the pad area and used to backfill the pits after the drilling is completed. <br />All drilling fluids will be contained within the mud pits, and all drilling supplies will be contained <br />within the area of the drill pad. Any runoff and associated suspended sediment from the drill pad will <br />be controlled and contained by a perimeter soil berm or silt fence on the downgradient side(s) of the <br />drill pad. <br />Immediately upon cessation of operations, the subsoil will be replaced, with the surface left in a <br />roughened condition. The A and B horizons will then be replaced over the subsoil material (Rule <br />4.21.4(5). <br />Drilling Operations: A rotary drill-rig, capable of rotary drilling and spot-coring, will be utilized for <br />general exploration work. The drill-rig will be a truck-mounted, rubber-tired unit, capable of <br />operating in rough terrain. Support equipment will include, but not be limited to, a water truck, pipe <br />Sage Creek Prqject - 2009 N0I <br />04/013/09 9