Plomosa-18

The Plomosa 18 Property (“Property” or “Claim” or “Site”) is composed of thirty-two (32)20-acre unpatented mining claims totaling 640-acres of placer claims. The Property will be developed to process 1.5 million tons of head ore in the first year of operations, followed by the processing of up to 1.8 million tons per year per claim for 31 additional years (Life of Mine (LoM) is 32 years). Standard surface mining techniques will be used with a shaker plant/gravity concentration operation with a flotation circuit added after year 1 of operation.

There is a long history of mining in the area of the Plomosa 18 Mine. The Mine lies within the Plomosa Mining District, near the town of Quartzite on La Posa Plain, between the Plomosa Mountains on the east and the Dome Rock Mountains on the west. This is mainly a placer district; however, gold, copper, and lead have been produced from lode mines. These were worked intermittently until the l 950's, and several unsuccessful attempts were made to mine the gravels on a large scale. Total gold production of the district through 1959 was about 24,570 ounces: about 19,400 from placers and 5,000 from lodes.

Gold and other mineral concentrates occur in significant amounts on this Property. There are three main types of gold deposits: hydrothermal quartz veins and related deposits in metamorphic and igneous rocks; in volcanic-exhalative sulfide deposits; and in consolidated to unconsolidated placer deposits, which occupy 95% of the land area in the Claim. The placer deposits are targeted on this Property.