Week 6/7 (no presentations next week due to SME)

1. Week 6/7(no presentations next week due to SME)

2. Coal

3. Finalizing the Plan • Proof has been shown that the losses resulting from Mining #5 seam are greater than the value of the recoverable coal it contains • Proof has also been offered that #7 is far enough away from #6 that #7 coal is not sterilized by mining more profitable #6 first

4. The Order for #6 and #3 • The board of directors consulted with two international authorities on rock mechanics • Longwalling #3 coal will produce cracks in any coal seam within 50*thickness of longwalled coal • Take your contour map of the #3 coal • For areas you indicated intent to mine multiply the coal thickness contours by 50 • This is your required innerburden map • Create a contour map of the innerburden between the #6 and #3 coal (your #5 coal with its roof, coal, and floor are now additional innerburden since you elected to write-off the #5) • Compare the two contour maps – what areas of #6 coal are within the 50 times limit • (I’m guessing not very much)

5. Economics/ vs Rock Mechanics and Convenience • The Met coal is worth more than the #6 and delaying the met coal will hurt NPV badly • Starting met coal mining soon would be a valuable move if it can be done technically • Longwalling is more disruptive of seams above and will impact up to 50 times seam thickness • If you were room and pillaring #3 there would be little doubt of adequate innerburden • But room and pillar would sacrifice recovery and increase costs.

6. Evaluate • Look at the area of #6 that is within 50 times the thickness of the #3 coal below • Can you time you mining sequence to be out of those areas before you had to longwall? • Look for a sequence based solution that will allow you to start mining #3 coal about 5 years after mining in #6 starts

7. If the #6 impacted area is too large to sequence around • What is the value of the #3 coal mined by longwall? • (Sales Price – Cost to Mine)*minable tons • What is the value of the #3 coal mined by room and pillar? • How Much Do You loose if you go to room and pillar? • Now take the value of #3 coal by longwall * P/F for 38 years and 15% interest • How much do you loose by delaying mining until after #6 is totally mined out? • Which of the two losses is less? • Now Build your #6 #3 sequence plan

8. Plan Your Timing • Time out your #6 coal mining with a timing and development map for the life of mine • With that timing map generate the tons of coal plant feed (with out of seam dilution) each year • Will there be any changes in coal quality with time? • Develop a schedule of Royalties Paid each year • Select your face equipment and build a manning table for your face crew • Time out your #3 coal mining

9. Look at Your Coal Prep • You now have a schedule of coal feed • (you already have a table for estimating your waste output from the feed) • You selected a prep plant location in the middle of your property • Part of the rationale was you would not be mining channels under that area – but #6 and #7 have no channels and you centered right over the thickest #7 coal • Check the location of your coal waste piles • Then develop a year by year development plan showing where the waste you are making is going.

10. Begin Writing a Big Part of Your Report • You will be turning in a partial report before spring break. • Suggested outline found in the coal people area of the web site. • Submit first drafts of 3 sections by Friday (Feb. 22) • Have a draft of 2/3rds of report sections outlined so far by Friday (Mar. 1)

11. DIAMoND

12. Your Production Strategy is now in place • Get parameters for constraints • What are reasonable sustainable slopes for clay? • How will you build the haul roads in your pit? • What kinds of rolling resistances will you face? • What kinds of coefficients of friction will you have? • Think about your schedules • Do the pits and processing need to run the same schedule? • What about the surface and underground? • Do you want a 5 day a week schedule or a 7? • How many shifts per day do you want to run? • Multiple shifts per day tend to better utilize capital expenditures • But they can also trigger costs • An indoor processing plant may not care much about day or night • But haul trucks and loaders will need an electric light infrastructure to run after dark. Several weather related problems are also a bigger issue at night.

13. Weather Impacts • The Hecla Wyoming weather station is just south of your location • Laramie has 26 rainy days per year • Consider the impact of snow and snow drifts on your haul roads and vehicle travel times • Consider the impact of daylight hours • Will freeze thaw impact your roads in pit stability in the winter? • If you do not keep workers on site they will have to drive high mountain roads – potentially in bad weather • Happy Jack road could face frequent closings from storms or drifting snow.

14. Plan a Schedule • How many work days and shifts do you plan for your open pit each month? • How many work days and shifts do you plan for your underground each month? • How many work days and shifts do you plan for your processing • Your last presentation seemed to do multiple shifts for mining out in the dark and cold- but for the plant that could easily run multiple shifts you seem to run only 1. (Explaining why might be interesting) • Will you have workers housed on site at all (obviously you will for some of your security)

15. Build Your Map • Put your roads on the map and get specific information about grades and surfaces into FPC. • Get your mileage • For the type of roads you build estimate the cost of all the roads that you will build and include them on the map. • Assume your road cost will be increased 50% to provide snow management if you intend to run in the winter • Pick road maintenance equipment • For every 2.5 miles of road assume you need 1 road grader and two D8 size dozers • For every 6 miles of road assume you need a water truck • If you are running in the winter what will you need for snow plows (you may also have to keep Happy Jack Road open) • Estimate the capital cost and annual operating cost for your road support equipment.

16. Adjust Your Pit Maps • There is question about how steep your pit slopes will stand • Make adjustments to your final and stage pits as necessary.

17. Size Your Surface Equipment Fleets • Pick your trucks and front end loaders and calculate your capital and operating cost per ton. • You will have different operating costs per ton in different pits and to a lesser extent different parts or depths of pits. • Have a plan for fleet size and operating hours and cost for each year you will be surface mining.

18. Plan Your Ancillary Facilities • Ancillary facilities are peripheral buildings • Will you have a truck and loader repair shop? • Plan the building • Estimate the buildings cost (Means cost estimation system is good for civil type buildings) • Will you have a parts warehouse? – Will it be a stand alone building or part of another? • Plan the building • Estimate the building cost • Will you have a wash house for workers (given your earlier explanation of security your answer is almost surely “yes”) • Plan the building • Estimate the building cost • Will you have an office building? • Plan the building • Estimate the building cost • Will you have any kind of residence suites for either workers or security • Plan the building • Estimate the building cost

19. Your Security • You planned extensive round the clock security • What type of facilities will that require? • After the European Diamond Heist how would your prevent an armed raid on your complex? (you are out in the middle of nowhere) • What types of fences and sensors are you thinking of? • How will you maintain and operate that during harsh winter snow and wind storms? • You have had problems with equipment being attacked (probably radical environmental groups associated with the Autistic Artisan). How will you deal with equipment sabatouge? • What are these security ideas going to cost to buy and operate?

20. Your Processing • After taking a good hard look at your processing schedule • Lay out and select the equipment you will use for processing (this should be specific unit to buy) • Your idea to process only 9 hours per day seams like you are building a much bigger plant than might be needed • Identify how you will recover (or if you will recover) garnets • Layout your processing building • Estimate the cost of your processing building • Estimate the cost of the equipment it will contain • Estimate your processing cost per ton.

21. Processing Related • How far will you go toward processing to finished stones at your processing plant? • If you are going to send your stones out for cutting how are your going to send them out? • How will you maintain security for your shipments? • You will likely ship by air- what airport?

22. Writing Your Report • You will be turning in at least ½ of your report sections by Mar. 1 and a draft of all sections outlined by Friday before spring break. • See the Diamond area of the website for suggested outline to date (is not all sections that will ultimately be included).

23. Copper-Gold

24. Update Your MSOPIT Runs • Make Sure you include increased mining costs by bench. • You now have your mining costs figured out based on specifics for your mine. Put those costs into the MSOPIT cost matrix. • You should now know the cost of processing each type of ore and the recovery you will get for each mineral with each type of ore. • You should now be able to include differential slopes by azimuth and rock type. • Get this information in and rerun your Ultimate Pit.

25. Check the Life and Production Rate • The changes you made might impact the amount of ore you can recover by ultimate pit • Check the amount of recoverable ore • At your proposed production rate, what is the life of your mine? • Is the match still realistic.

26. Begin Preparing Some Information for an Appendix • Get screen shot showing how you implemented differential cost by bench. • Write an explanation and show by calculations how you got those differential costs. • Get Screen shots showing the input you used for your mining and processing costs and recoveries • Write an explanation and show by calculations how you got those costs in the matrix. • These calculations should be clear and complete enough that no one has to redo any calculations to know exactly how you got the numbers in the blanks • Get Screen shots showing how you input your differential slopes by azimuth and rock types • Write an explanation and show by calculations how you got the values in the matrix. • This appendix report is likely to be quite long (it will have a lot of screen shots and then calculations and explanations for where each value came from) and is due before spring break begins.

27. Calculate Push Back Size • Indicate the production capacity or your ore and waste fleet. • When you go from a final pit slope to having the number of working benches you need for production, how much extra width did you have to add • Show your calculations • These will tell you what your push-back distance is.

28. Stage Your Open Pit • MSOPIT has a variety of tools that can be used to plan out your pit expansion year by year. • Pick an appropriate combination of these tools and show what your stage pits will be like every 3 years • You do not yet need to use the pit expansion tool to add roads and benches.

29. Start Working Your Infrastructure • At this point you pretty much know the size of your mining operation and what it will include • Review the electric power line infrastructure in the area • Assume you will need about a 160 to 200 KV line • Where can you tap that kind of power? • Where will you run your power line? • How long will the line be? • What will it cost? • How long will it take to put it in?

30. More Infrastructure • With your processes known you should know what you have to ship, how much of it you have, and where you will ship it. • What method will you use to ship? • Put together any rail or road ways you will need • Where will they run? • How long will they be? • What will they cost? • How long will it take to build them? • Make sure the road network will also handle whatever things you need for supplies and workers to get in.

31. More Infrastructure • Where exactly is water available in your area? • How will you get that water to your operation? • Route and size your water line (or lines if you are getting more than one kind of water from more than one location) • What will your water line cost to build • How long will it take to build.

32. Write Part of Your Report • An outline and more details will follow