Iron River Field Office PO Box 286 Iron River, MI 49935 April 21, 20010 Bureau of Land Management-Eastern States ATTN-Deputy State Director for Resources 7450 Boston Boulevard Springfield, Virginia 22153 Digital copy to: timothy_o brien@blm.gov RE: Exploration Plan - 43 CFR Sec.305.45 (a) Name and address of Contacts Prime Meridian Resources Iron River Field Office PO Box 286 Iron River, MI 49935 Attention: John Gartner VP Exploration Tel: (906) 265-9640 Fax: (906) 265-9645 (b) Description of Environment Plan May Affect The MNES 54217 Prospecting Permits covers the following area: T59N, R14W Section 26 NWNW, SESE Geological Setting The area lies in the Superior National Forest. It consists of a low lying terrain cross cut by northeast trending hills with relief up to 75 feet. Outcrop is sparse to nonexistent on the land described above. Bedrock lies between 50 to 100 feet beneath the glacial drift. Te property is believed to be underlain by rocks of the Duluth Complex. Hydrologic Environment The dominant hydrologic feature in the area is Wyman Creek which lies between the two parcels Physical Factors The area has been affected by previous mining, mineral exploration and logging activity. As a result of these activities, there is good access to the parcels by existing logging roads and trails. The area can be reached by Fire road 117. The area can also be accessed from trails from the north. 1
Vegetation PMR has not completed systematic vegetation surveys. The vegetation in the uplands areas was observed to be a mixed forest, a mixture of hardwoods, poplar, pine, spruce and fir. In the lowland areas the vegetation is dominated by spruce, fir, alder and willow. Fish and Wildlife PMR has not undertaken systematic surveys of fish and wildlife. Land Use No land use survey has been completed by PMR, (c)(1) Exploration Methodology (SEE attached map for the location of BLM Prospecting Permit parcel locations) Mineral exploration is a risky undertaking; the risk of exploration for blind ore deposits is tempered by the proper collection and interpretation of geological, geophysical and geochemical data. The exploration approach on these parcels will use some or all of these tools. The exploration process can be broken down into the follow steps: a) Compilation of existing data b) Airborne geophysical survey(s) c) Geophysical, geochemical and geological surveys to follow up the results of the airborne survey. d) Exploratory drilling e) Detail definition drilling a) Compilation of Existing Data Some of the parcels in MNES 54217, have been previously explored. The results of some of this work are available for examination at the State of Minnesota DNR facilities. There have been advances in geophysical and geochemical, equipment and techniques since the original exploration work were completed. New surveys will be required to accurately define drill targets b) Airborne Geophysical Surveys Airborne Geophysical Surveys are planned for the area. Although the survey parameters are yet to be finalized. Aircraft will be used to collect geophysical data in a grid pattern over the properties. The data collected will be evaluated and used to identify areas with anomalous geophysical signatures (anomalies) worthy of ground follow up. Results of the airborne survey will be used to plan effective ground geophysical surveys that will refine the understanding of these anomalies. The survey data will also be used to improve the geological interpretations in the area. 2
c) Ground surveys Area that will be identified as favorable for the discovery of Mineral deposits either through the use of airborne surveys or geological compilation will require the construction a series of grid lines to facilitate the collection of ground data. These grid lines must be precisely located on the ground. These grid lines will consist of parallel cut lines approximately 1 meter wide cleared using hand tools and chainsaws or equivalent to remove brush and trees less than 3 inches in diameter so that there is a clear line of sight down each line. Base lines and tie lines will be constructed in a similar fashion perpendicular to these grid lines, typically in the middle and ends of grid lines to provide additional accuracy for the locations of the grid lines creating a square shaped grid. Distances along these grids will be measured surveying equipment and pickets will be placed at 25 meter intervals along each line. The grid constructed on a parcel will be approximately the dimensions of the parcel Each grid line will be a fixed distance apart from the adjacent grid line. The separation is as yet to be determined. The spacing may vary from 25 meters to up to 500 meters apart depending on the individual anomaly. This grid will facilitate the collection of geophysical data. A variety of geophysical instruments will be used to collect magnetic, gravity and electromagnetic data. For magnetic and gravity data collect, an electronic instrument will carried on foot by the geophysical operator to each picket to collect the data. Electromagnetic surveys will one of two types: either Horizontal Loop EM (HLEM) where two operators walk along the gridlines joined by a coaxial cable collecting Electromagnetic (EM) data. Induced potential may also be completed in this case a thin cable is stretched along the gridline by several operators and steel spikes are pounded into the ground at fixed intervals. A generator is used to charge the cable for a short interval and an instrument is used to measure the geophysical response. The grids may also be used to collect soil geochemical data. Soil samples will be collected at 12.5 to 100 meter intervals. The soils will be collected by hand using hand tools. The grids may also be used to facilitate geological mapping. Geological mapping will be performed on foot. Where roads exist, support vehicles of either four wheel drive vehicles or ATVs will be used. Where roads do not exist the equipment will be carried in by hand. d) Exploratory Drilling If a promising target is identified by the ground surveys, the target will likely be drilled. The location of these drill holes will be determined by the results of the ground surveys. Each target sites may have up to 4 holes drilled ranging in depth from less than 100 feet to up to 5000 feet. The number of exploratory drill holes is uncertain and will be determined by the ground surveys. Upland sites once permitted can generally be drilled year round. Wetland sites will be drilled in winter during frozen ground conditions. It is anticipated that up to 4 drill sites may be constructed. At each drill site an area of 20X20 meters will have to be cleared to allow for proper and safe operation of the drilling equipment. All timber cutting will be done in accordance to US Forest Service regulations. Each site may be used for more than 1 drill hole to minimized surface disturbance. Each site will include a 7mX7mX3 m deep sump to contain drill water and cuttings. In wetland areas, a portable stock tank or equivalent recirculation tank may be used in lieu of the construction of a sump. 3
The results of the drilling will determine whether more than 1 drill site will be constructed. Where needed in the absence of existing roads and trails, temporary access roads approximately 4 meters wide will be constructed to the drill sites. In so far as possible existing roads and trails will be used. For safety reasons, areas constructed as drill sites shall be open to state and federal officials, hired contractors, their employees, company staff and consultants. Unauthorized individuals will be restricted from entering the site. All sumps will be fenced with high visibility fencing. Experienced drilling contractors will be contracted to perform the drilling services. Standard skid-mounted or truck mounted drill rigs will used to do the drilling. Four wheeled drive vehicles, ATVs and snowmobiles will used to ferry staff to the drill sites. Support vehicles will include either a tracked vehicle or a Skidder-type of vehicle. A skid mounted or dual axel trailer will be used to ferry drilling equipment (drill rods etc) to the drill to the site. These vehicles may also be used to ferry staff to the sites when a four wheel vehicle, ATV or snowmobile cannot be used. Each vehicle will be equipped with firefighting equipment and will contain at the minimum extinguishers, shovels buckets and axes. All fuel and other drilling fluids will be stored in secondary containment. No fuel will be stored in wetland locations. Spill prevention Kits and mitigation measures include training of personnel on spill prevention measures as well as having shovels and buckets on hand for spill containment. All trash will be stored in suitable containers and removed from the site daily for disposal. No firearms or explosives will be permitted on the drill site. The proposed source of the water used in the drilling operation will be local streams and ponds. Where no water exists, water will be brought to the site in a water truck or a skid or trailer mounted water tank. The only additives to the drilling water such as bentonite will be those approved by the Minnesota Department of Natural Resources (DNR) and Minnesota Department of Health (MDH) regulations Noise issues will be mitigated by having exhaust pipes pointing straight up and ensuring that adequate and functional mufflers are installed when needed. Upon completion of the drilling, each well will be either permanently abandoned with cement or temporarily abandoned with a capped casing per DNR and MDH regulations. e) Detail Definition Drilling Detail definition drilling will occur if a mineral resource is discovered during the exploratory drilling stage and warrants detailed drilling to provide sufficient definition of the grade and tonnage of the deposit. However until the exploratory drilling stage is complete, it is impossible to determine the number of drill sites needed at this time. Procedures similar to those for the Exploratory Well Drilling at each drill site are anticipated. Anticipated Equipment Drill rig: light duty drill rig either on skids and moved with a track vehicle or Skidder to the site. Map be truck mounted and driven to the site Tracked vehicle, Bulldozer (D5 or equivalent) for road construction and/or drill or drill movement, and/or rubber twin track vehicle and/or a skidder to move the rig. Trailer or dray to bring in drill rods Water truck if needed ATV or snowmobile 4
Heavy duty 4WD trucks to haul personnel, core and supplies Access equipment (i.e. Lowboy) to haul drill on public roads to a staging area. Disturbance Area During the initial phase of ground survey no surface disturbance is anticipated. While surface disturbance is anticipated during the Exploratory Drilling and Detail Drilling phases, the specific drill sites have not been determined so disturbed acreage cannot be determined at this time. (2) Measures Fire Prevention and Control Fire fighting equipment will be present on site. The equipment will include water pumps, water, axes, shovels and pails. Reclamation and Soil Stabilization Upon completion of drilling activity, all equipment will be removed and the sump will be backfilled. The site will be restored as soon as weather permits. In accordance to restoration procedures outlined by the district US Forest Ranger, drill sites and access roads will be surface graded and reseeding using an approved seed mixture. The seed mix and the use of fertilizer will be determined by the District Ranger. Grading and seeding will stabilize the soils. If needed an approved mulch will be used to protect the seed during initial germination Public Safety For safety reasons, areas constructed as drill sites shall be open to state and federal officials, hired contractors, their employees, company staff and consultants. Unauthorized individuals will be restricted from entering the site. All sumps will be fenced with high visibility fencing. Soil Erosion During winter drilling conditions, due to frozen conditions, soil erosion is minimal. The sump is filled immediately upon completion of the drill hole. Upon removal of equipment, we will immediate grade the surface and seed the surface with approved seed and if necessary mulch the surface with mulch approved by the US Forest Service District Ranger Wildlife Habitat We do not anticipate that parcel located in upland areas will damage wildlife habitat. The relative small size of the drill site and the short time that we would affect this site should not cause a loss of habitat, as the site will be reclaimed at the first opportunity. Wetland habitat will only be drilled under winter (frozen) conditions and no impact is anticipated. Water Quality Impacts 5
During seasonal closures or temporary cessations of activities, Drill casing will be sealed with a cap. All fuel and with the exception of water in the sumps drilling fluids will either be removed from the site or stored in secure secondary containment in an upland area. (3) Hole Plugging Drill holes that will be permanently abandoned per Department of Health Chapter 4727.1250 Permanent Sealing of Exploratory Borings, will be sealed by cementing from top to bottom or by cementing a 250 foot cement plug, by inserting a tremie pipe into the drill hole to pump cement into the hole in accordance to DNR/MDH regulations. Some holes may be temporarily abandoned to do down hole geophysics following provisions set forth in Minnesota Department of Health 4727.0950 casing requirements for temporarily sealed Exploratory Borings Approved steel casing is left protruding from the hole at least 5 feet above the regional flood level and one foot above ground. The casing is capped and sealed with a threaded steel or welded cap. A temporary abandonment form must be filed with the Minnesota 4(i-v) Reclamation and Soil Stabilization Upon completion of drilling activity, all equipment will be removed and the sump will be backfilled. The site will be restored as soon as weather permits. In accordance to restoration procedures outlined by the US Forest District Ranger, drill sites and access roads will be surface graded using a bulldozer and reseeding using an approved seed mixture. The seed mix and the use of fertilizer will be determined by the District Ranger. Grading and seeding will stabilize the soils. 4(d) Time Table The time table will depend on when we receive the prospecting permit and at what time of the year it is received. We intend to initiate line cutting and ground surveys as soon as contractors are available. It is anticipated that drilling will take place 6 to 9 months following completion of the ground surveys depending on contractor availability and seasonality. Drilling usually averages about 60 meters a day, and with an anticipated depth of up to 1500 meters the site will be impacted for about 20 days. 4(e) Topographic maps See attached map.. Drill hole locations cannot be determined at this time. 6
Disturbance Area During the initial phase of ground survey no surface disturbance is anticipated. While surface disturbance is anticipated during the Exploratory Drilling and Detail Drilling phases, the specific drill sites have not been determined so disturbed acreage cannot be determined at this time. Submitted respectively John Gartner VP-Exploration Prime Meridian Resources Corp Michigan Field Office PO Box 286 Iron River, Michigan 49935 Tel (906) 265-9640 Fax (906) 265-9645 7
Map, Sketch, Drawing 1) Map 1 Location of MNES 54045 Parcels 8