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another 500 feet to several drifts which follow ore. A primary vent and escapeway is shown on <br />the maps in this vicinity. Not mapped underground is an extension into the original workings <br />about 200 feet to the original vent and escapeway which has been reopened. Underground <br />mapping of this old part of the mine is pending, and exploration drilling will determine if the <br />mine is extended in that direction. <br />Current operations include a small underground uranium/vanadium sampling operation with two <br />to four mine workers. Mining is by random room and pillar techniques and conventional <br />explosives. Equipment used in the mine include jackhammer and jackleg drills using <br />compressed air, rubber-tired skid steer loader and a 5-ton ore buggy haulage unit. Water is <br />hauled to the site using a pick-up in 350 gallon loads. Ore and waste rock are usually "split- <br />shot", then mucked, and separately removed from the mine by an ore buggy which was designed <br />and approved for underground use. A waste rock area has been established with consent of BLM <br />and bermed to direct run-off to a sediment/detention pond; water is used for drilling and dust <br />suppression in the mine. If storm water overflows exceed the sediment pond capacity, they are <br />discharged across a riprap spillway into a natural drainage. Ore is temporarily stockpiled in a <br />small bermed area which directs any flows back into the mine so that total containment is <br />maintained for any run-off from the ore. Ore is loaded onto contracted ore trucks with a loader <br />and hauled offsite for processing at the White Mesa Mill at Blanding, Utah. <br />Ore haulage will be done by contractors using 20-ton covered end dumps or similar trucks, <br />which can be filled by the loader. The contractors are required to obtain all necessary permits <br />and clearances, follow National, Colorado, and Utah Department of Transportation regulations <br />including establishment of spill control plans. The primary haulage route will be via the <br />previously described Montrose County roads to Colorado State Highway 90 and either west <br />through La Sal, Utah, or east to Colorado State Highway 141 and south to US Route 666 and <br />westward towards Blanding, Utah and Dennison's White Mesa Mill. <br />3. Exploration <br />Exploration drilling will be done in three phases using a self-leveling, 10-wheel Davey Drill <br />Truck, which has the capability of driving to each borehole location with minimal disturbance. <br />Drilling will be by air rotary methods, minimizing equipment and materials; i.e. no mud pits, <br />waste piles, drill pads, etc. The operation will generally require no site preparation, although <br />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. Approximately <br />358 boreholes are listed and will be drilled to depths of about 250 feet. At least one borehole in <br />each phase will be drilled to an estimated 400 feet to completely penetrate the Entrada Formation <br />(Slick Rock) and into the underlying Navajo or Kayenta formations for geologic control. <br />Although not anticipated based on local outcrops and underground mine mapping, if measurable <br />ground water is encountered, a monitoring well(s) will be constructed and groundwater sampled, <br />analyzed, and monitored as required. <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 />Last Chance Mine - April 2009 <br />D-2