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placed on the waste rock dump. A waste rock area has been established and bermed to direct <br />run -off to a sediment/detention pond. Should storm water overflows exceed the sediment pond <br />capacity, they are discharged across an engineered riprap spillway into a natural drainage (see <br />the Storm Water Management Plan). <br />An ore loading and temporary stockpile area previously established with the NOT will continue <br />to be used. Run -off from this area is controlled by berms which direct any flows back into the <br />mine so that total containment is maintained. Ore is loaded onto contracted ore trucks with a <br />loader and hauled offsite for processing at the White Mesa Mill at Blanding, Utah. Potentially <br />ore could be shipped to a new Pinion Ridge Mill proposed by Energy Fuels Resources <br />Corporation to be constructed in Paradox Valley within nine road miles of the Last Chance Mine. <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 200 feet. At least one borehole in <br />each phase will be drilled to an estimated 300 feet to encounter the top of the Entrada Formation <br />(Slick Rock) for geologic control. Although not anticipated based on local outcrops and <br />underground mine mapping, if measurable ground water is encountered, a monitoring well(s) <br />will be constructed and groundwater sampled, 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 />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 and <br />n <br />