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May Day Idaho Mine Complex 112 (d) Permit Application <br />Division. The suitability of the stope for tailings disposal will also be evaluated <br />once access is granted and the fact that the stope is dry can be confirmed. <br />A final process description will be provided to the Division within 30 days of the <br />completion of the optimization phase. <br />3. Phase 3 - Production Phase: May ay No 1 Operational Area <br />Following milling optimization, production will begin on the remaining ore stockpiled <br />within the May Day No. 1 Stope (approximately 7,000 tons). Mining will then <br />commence at zones of mineralization in the vicinity of the May Day Vein. Current <br />reserve estimates indicate mining will continue for a minimum of 5 years at a rate of 35- <br />100 tons per day, 365 days per year. <br />Blasting will be done in accordance with the protocols described in the Geotechnical <br />Stability Exhibit. <br />All work will be performed in accordance with MSHA regulations and include <br />appropriate personal protection equipment. The following workers will be engaged in <br />mining activities: <br />• Three workers will be involved in blasting activities; <br />• Two workers will be involved in ore removal and transport to the mill; <br />• Three workers will be involved in mill operations: one worker loading rock into <br />the ore bins and monitoring tailings production and two workers monitoring <br />gauges and pumps. <br />Power to the mill will be provided by 110kW diesel powered gensets. Diesel fuel will be <br />stored and handled in accordance with the Environmental Protection Plan (Exhibit T, <br />Section 6.4.20.7) <br />4. Phase 4 - Exploration <br />The planned exploration program includes the drilling of eleven boreholes and the <br />construction of associated exploration roads, which are depicted on Figure C-4. Six-inch <br />diameter boreholes will be drilled, one at a time, to a maximum depth of 1,000 feet. <br />Depending on drilling technique selected, it is anticipated that the size of the drill pad <br />will be 100' x 100'. Drill pads and roads will be constructed with appropriate stormwater <br />BMPs implemented (Exhibit T, Section 6.4.20.10.b). All boreholes will be abandoned <br />and permanently plugged according to the Colorado State Engineer and the DRMS <br />requirements specified in 5.4.2. Drill pads will be reclaimed as per the Reclamation Plan <br />(Exhibit E). Roads will remain as permanent structures. <br />5. Phase 5 - Production Expansion <br />Based on the results of the exploration phase, the total operational area may be expanded. <br />Depending on the design of the expansion, either a Technical Revision or an Amendment <br />will be submitted to the DRMS for review and approval. <br />May Day Idaho Mine Complex 112(d) Permit Application <br />September 21, 2010 <br />4