PERMIT FILE - 7/23/2009, 2:33:51 PM-MR1

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JUi 13 Uy Ub:l4p N•< The Jubilee Venture property is approximately 25 miles northwest of Craig, CO and can be reached by going north on CO Hwy 13 truck bypass which starts at the westernmost stoplight on ti-S. Hwy 40 in Craig. Proceed north for approximately 2 miles on the bypass and depart it on paved County Hwy 7 going west. Proceed on the pavement for four to five miles where it makes a pronounced turn to the west and a graveled road (Moffat County Hwy 3) proceeds directly north straight ahead. Proceed on Hwy 3 for about 9 miles to where County Hwy 5 departs it at a "T" on the top of a hill. Follow Hwy 5 for almost 7 miles where it crosses County Hwy 17. Turn right on Hwy 17 and proceed for L V4 miles to where a dirt road takes off on the right. This is private land belonging to Norman and Gonzales but provides the access to the Jubilee Mine. Proceed about'/ mile where the road crosses into the NEl/4 Sec. 9 (placer claim BI 3). It goes down a relatively steep grade and swings to the south past a couple of old cabins onto a flat which it crosses and jogs by the dam on the pond in Housel Gulch. This places a person on the north edge of the area of activity. ACTIVITY DESCRIPTION The area of activity is in good part where former mining operations have taken place so there are a number of access roads and trails. The main activities Jubilee contemplates are the construction and operation of a sample processing plant and a drilling program employing a rubber tracked auger drilling rig. The plant will be on the edge of previously disturbed ground where the topsoil will be stripped back to make a 150'X150' working area for the processing plant and its associated settling pond and storage building. The cover will be stockpiled and seeded in anticipation of it being used to recover the stripped area. The rubber tracked drill rig exerts only 7 psi pressure on the ground so other than crushing down the sagebrush in the drilling area there will be little damage from its passing. The topsoil from the collar of the drill hole itself will probably constitute a part of the first five foot sample from the hole so some other topsoil, probably from a cutbank in a nearby gully, will have to be used to polish it off when the drill hole is backfilled and reclaimed. Auger drilling doesn't require drilling mud or mud pits and the drill hole cuttings, after they have been processed in the sample processing plant, will be used for backfilling the drill holes. There is an accompanying map at a scale of 100' to the inch which shows the project drilling area and where the processing plant will be located. There are enough existing roads (they are particularly revealed on an aerial photograph of the area) that no more new ones need be built. No improvement of these roads is deemed necessary. EQUIPMENT EMPLOYED The equipment to be used includes the aforementioned auger drill rig and the sample processing plant. A water source (either one of the wells on the site or the pond adjoining the ground where the processing plant will be) will be tapped and water pumped to a tank on the hill to the west of the plant. This tank will be set on the ground at an elevation high enough to deliver water to the plant at an adequate pressure for plant requirements. It will just be sitting on the ground and will supply and receive water through hoses or PVC pipe of a proper diameter. The plant uses plain water as a component for the slurry which moves the sample material through the plant. The feed for the plant goes through a hopper onto a conveyor belt which elevates it to be dumped into a crusher. The crusher