Expansion

The Bralorne mine is an operating mine that has the potential for delineating additional resources below the area presently being mined. Thus there is opportunity for continued operations and the potential to expand the mine operation and increase proceeds from its operation should these resources14 be delineated. This process of resource expansion combined with operational expansion should be completed in a controlled manner. To meet these criteria the following recommendations are made to provide that basis on which the mine can move forward and expand its operations.

1. Ensure that the process plant maintains the capability for a throughput of at least 85tpd.

2. Commence the exploration plan to define resources from 800L to 1000L.

3. Install a treatment facility to allow the mine to be dewatered to 1000L.

4. Dewater the mine to 1000L.

5. Provide access to the 1000L and rehabilitate the underground openings to allow for exploration to continue from underground.

6. Upon delineation of resources sufficient to allow indicate an expansion to a nominal production rate of 250tpd complete further studies to determine the viability of theexpanded production and establish the capital costs to enable such an expansion to proceed.

7. Included in subsequent evaluations should be the establishment of a plan to further dewater the mine workings below 1000L with a view to continuing exploration of areas below 1000L to maintain a production rate of 250tpd and also with a view to increasing the production above this figure.

8. Complete an ongoing evaluation of the operation and the potential to expand by utilizing outside consultants as advisors to ensure that Bralorne staff direct their energies towards day to day operations.

The estimated cost to complete these recommendations is shown on Table 1.8 and totals $17,963,000.

Description  Estimated Cost
Exploration $4,986,000
Studies and Design Allowance $700,000
Dewatering to 1000L $512,000
Ramp to 1000L $2,000,000
Rehabilitate Shaft $250,000
Rehabilitate Drifts $1,250,000
Water Treatment System $2,480,000
Equipment $1,508,000
Detailed Engineering and Management 684,000
Contingency 25% 3,593,000
Total Cost 17,963,000

It should be noted that additional expenditures are required to provide the facilities for expanding the operation to 250tpd should sufficient resources be delineated and subsequent evaluations indicate the expanded facilities are potentially viable.

It should be clearly understood that no resources have been delineated below 800L and there is no guarantee that any resources will be found and that an exploration program is required to define those resources. However, in the authors' opinion there is the potential for additional resources to be delineated below 800L at the Bralorne mine since historical information clearly indicates the potential for resources. However, there is no certainty that additional resources are below this level and anyone reading this report should assume that there may be no viable resources below 800L until such time as they have been delineated and verified.