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UCC 007592 Mineral Rights Belonging to the ATLAS ASBESTOS COMPANY As of February, 1974 MARSHALL AND STEVENS Incorporated 1645 Beverly Boulevard Los Angeles, California UCC 007603 MARSHALL *nd STEVENS incorporitsd MARSHALL and STEVENS incorporated/appraisals Hatch 21, 1974 File No. 11-2832 Vlnnell Corporation 1145 Westminister Avenue Alhambra, California 91802 Attention: Mr. L. N. Carlson Vice President Gentlemen: In accordance with your request, we are submitting herewith our appraisal of the mineral rights of Atlas Asbestos Company, loc iip'I in the vicinity of Coalings, California. This report has been prepared by Mr. Ernest Oberbillig, who is our con sultant in the valuation of mineral rights, mining interests, etc. Based on the report which follows. In our opinion the. fair market value of the mineral rights, considered as an Integra1 par', 'i i total busi ness enterprise, is One Million Six Hundred Twenty " rh.Mi-and Dollars, $1,622,000. If you have any questions on the material <. ont a: u, d : rh i s report, please feel free to call Mr. Oberbillig directly Yours truly, MARSHALL and STEVENS Incoroorated JLVrjer UCC 007604 TABLE OF CONTENTS Letter of Transmittal Introduction Geology REPORT Ore Reserves Property and Claims ' Past Operations Products Sold Plant or Mill Cost of Production Plant Improvements EPA and OSHA Health Requirements Marketing and Prices Recommendations Valuation of Mineral Unit ADiM.'in.A Schedule of Mining Properties Sales by Product Production Costs Page ii l 6 9 11 14 14 18 18 13 36 37 J8 2. 1 ?. UCC 007605 MARSHALL AAd 5TCVEN5 irtCO/pof MINERAL RIGHTS. VALUATION Introduction On the southeast end of the New Idria intrusive, there has developed a new chrysotile asbestos field which now dominates the domestic industry. Nearly half the total United States asbestos output comes from this Coalinga area. California now has truly become important in the asbes tos busines's but development here has been largely in the past decade. So recent has been this development that even an authoritative South African text on asbestos by Sinclair dated 1968 does not mention Coalinga asbescos. Nonetheless, Coalinga asbestos of the specific mineral series called chrysotile, in keeping with the suffix "tile" in its name, has become highly desired in the tile floor covering industry, for whiteness or color quality, Coalinga asbestos is rivaled by only one other mineral produced in Yugoslavia. Another quality in which Coalinga asbestos ex cels is oil absorbance averaging 74 ml/100 gm* This oil absorbtivity, so important to tile manufacturers, can he ao. <>:i:ed for by the unique platy, mat-like shape of Che,asbestos part it: .own and compared with Canadian chrysotile fiber inj&e photo microgr tphs on the following page. Dry screening tests indicate, that Coalin' asbestos is comp.u ihle to Canadian group 7 fiber; however, wet screen tests show the Coalinga ' L. $ ?' 1 MARSHALL and STEVENS incorporated r UCC 007606 1 rr--> .< ff'-hy- : *. ^s>: - .,r ,>: ^ . s* - t/v.`i... . , , ,. f i / Xfk>, : A`-*v : / --'Y:. \ { i/ \X> YVY v! ./i-V i ;; '. ;/ /. :\0l \ A^mry&m ' "h * >?' A f) *. *>-. > W :*X' :* ' - :'// .v,-.. - . . ( vX X/ I! Iv t * ; v " ... ` tv W Y 'vX / .1 ' ' ./ i /. .. i - ; X' ^ 'v.1 ; ' . v' -J*o.*- * i- y Photomicrographs thou/ typical Canadian Group 7 chrytotile fiber at lejt and the Coalinga-typc chnjsolile fiber, right. (7OX). In luti conducted by Jahns-ManviUe, Coalinga fiber hat compared favorably wtlh Canadian Croup 7 asbetiot. Fig. 1. Photo Micrographs of Typical < u i ian Ct up 7 Chrysotlle Fibers, Left, anil Con' i-Tvpe Fibers, Right. 4 2 UCC 007607 MARSHALL iod STEVENS ftrorpoaid fiber to contain less "fines" or minus 200 mesh and the 100/200 mesh frac tion greater in percentage. Thus, the Coalinga fiber is a more uniformly sized product than its competition and in this respect alone could be more desirable than Canadian fiber with its greater percentage of finer fiber particles, possible a greater health hazard in handling and utiliza tion in industry. The increased whiteness of the Coalinga asbestos results in elimination \ of costB for expensive scarce titanium oxide admixture; today titanium oxide heads the long list of critically scarce mineral commodities. Tile mix containing only three percent titanium oxide with Coalinga asbes tos to have replaced Canadian mineral with only one-third to one-half the amounts for equivalent tile; the balance of filler material consisted of much leBs costly ground limestone. With these superior qualities of Coalinga asbestos now known and accepted by the tile manufacturers, one needs not wonder that this mineral has become so highly desired and solid ly accepted. \n A summary of an Interoffice memo regarding this feature states: "Because of the above described superioi . i.ar ictcristics of Coalinga type asbestos, the required amount oi asbestos to I produce tile is reduced from approximately 16 lo 187. when I using Canadian type, to 9 to 117. when employing Coalinga \ type." o The Coalinga field has been developed by three operatiqns'or companies: first, on the northwest end by Union Carbide, next, in the middle by 3 , 'Sp.ucc 007608 MARSHALL nd STEVENS iiKO/pofl'vd Atlas Asbestos Company, and last, on the southeast end by Johns-Manvilie. Fig. 2 shows the location of these operations. Union Carbide, with its 65 mile ore haul, is a lesser rival for sales at the present fiber prices, but with their "wet process" mill they are able to make specialty mineral products commanding a. higher price. This leaves Johns-Manville and Atlas Asbestos competing for the same type of customer and dividing the market between them. The features of these two operations which seem to swing the bal mce in favor of Atlas can be listed as follows: 1. Atlas' pit is close to the mill and now, with extentions of the pit to the southeast, can almost put the ore in the stockpile direct from the pit with a loader. Johns-'' >nvillo is served with a six mile long steep road usable only in the e-y months from their upper pit. 2. Their closer pit has a much lower gx ide of 'rc, which would not be commercial today even with a norma nrice increase. 3. It 'ts understood that they have i :p tai expenditure of around $4 million here and would be f ice- :'1> some additiwal OSHA. and EPA requirements costing in the. $HK).('no to $150,00Q range inmediately. This total deprex j ition of plant cooh' ip- ,,i -T pear on the balance sheet as a $10 to $15 per ton fiber cist leaving little, if any profit. 4 * UCC 007609 MARSHALL and STEVENS ncorpo#ai#d W- n ASBESTOS MININS OPERATIONS sj t 3 4 MILO 5 UCC 007610' COAUNOA' !|"JM- t+JVrm \ All these above cited disadvantages could account for the fact that JohnsManville has decided to "throw in the towel" and withdraw from this match with Atlas. Actually, there is market here for product from only one of the two operations anyway. This shut-down of Johns-Hanville now allows Atlas to seriously consider the necessary plant additions and changes to put Atlas on an efficient output footing to increase capacity and meet OSHA and EPA requirements at the same time. ' Otherwise, it was planned to consider an orderly disposal of Atlas plant j s'------------ --------- ------------------ -------------------------- ' ----- -------- ~ * Xand retire from the scene. There is just not enough market to split up three ways, but a two-way split can give Atlas elbow room to consider expansion and the necessary additions and costs to meet OSHA and EPA re quirements. Geology The New Idria mining district is centered by the serpentine intrusive mass of elliptical shape shown on Fig. 3 and rough 1v 1A miles long by A miles wide with the long axis of the ellipse being in direction and thus paralleling the structural features of the re(-.. m and likely the serpen tine mass i8 aligned along the Coalinga anticline. Seprentlne is a rock long known to be the host rock closely associated with the California mercury mines and often the silica carbonate altera tion of serpentine is the specific key rock sought in prospecting for UCC 007611 MAASHAU. nd STEVENS incoreonMd r>4 / Mi'.. V In4*x mp * o*b#*to* UpoT *nd mills in tK* vicinity mi C^clingc* FrM* Ccwnty. Fig. 3. New Idria Intrusive shown shorted and the Asbestos rich part of the Serpentine Is the lower stippled section, -- roughly the southeast one~third of the total intrusive, ,* 1 UCC 007612 mercury ores. This serpentine mass also hosts nickel, chrome, iron and talc minerals. Here the New Idrfa mass shown only minor chrome, nickel and iron deposits, but the southeastern end of the mass has been subjected to considerable shearing and lateration with the development of consider able chrysotile asbestos mineral which locally can contain as much as 60 to 80 percent of the soft altered rock mass. Large bodies of the serpen tine can show consistently 30 to 50 percent asbestos and there are the areas under exploitatipn at present. Unaltered boulders and masses of serpentine and peridotite occur through out the shear zones and these boulders represent the main part of pit rejects. The chrysotile ore bodies are altered and soft and can be mined and dug with no drilling and blasting except for boulders. This allows the ore to be mined, hauled, and stockpiled for around 50c per ton. This is con trasted with the cross-fiber asbestos mines in hard rock where mining costs can reach $10 to $15 per ton for ore containing only 5 to 7 percent fiber. Admittedly, these 'Tiard-rock" deposits yield i nerrentage of more valuable long-fiber product; they certainly need this : i ,-ver the greater mining and concentration coBts. We have already discuss-.-d the compari son of the better quality Coallnga fiber to the Grade 7 Canadian fiber. The ore cones in the serpentine mass seem to follow shear zones and it does seem'that they can be traced on aerial photos. One geologist has described the favorable ereas for exploration: 1. Along the contacts of the ultrahasic with the surrounding sediments; t 8 UCC 007613 MARSHALL STfVfNS irtCorf>Ot*t*4 2. Northwest regional trending shear zones within the ultrabasic; 3. Secondary shear zones within the ultrabasic cutting across the strike of the regional structure; and 4. The Intersection of any of the above structures. In the case of the pit area now being mined by Atlas, it would seem that the northwest shear zone probably crossed by secondary shear zones is the explanation for the soft rich ore bodies of large size which are yielding the workable material.' The soft platy structure of the Coalinga asbestos is shown by low-power microphotograph included here as Fig. 4. Much of the fine tailings contains another common accessory mineral of serpentine zones, talc, which iB a'hydrous magnesium silicate much the same as the host rock. The surface material from the ore zones and to a depth of 15 to 20 feet on flat areas has been oxidized and stained br >wn with iron oxide, but usually this fine iron goes on out with the t. >: l-ngs and does nor dis color the asbestos. Should it appear to pre.su-it x problem, the material is run into the drill mud product where color quality is not important. Ore Reserves While it is known that some ore bodies have been drilled to over 150 feet depth with no change in the material and some pit work has extended -re material for hundreds -of feet along the ore zones, iv systematic sampling 9 UCC 007614 MARSHALL am) STEVENS mcoroo'atad fi r r j 'r r. . r .-------- ~ ,s? ,W ------------------------ ------ ,, T t* >-. >/; '* -i V$> v JLyrVt ,. -< , *. i 'vjV.-*-.; 'is '-/ ->\j- K i.* ' % v )\-v^/.w : V: -r^i -v' S. , - :>: ^ ; '', jfrk .'~r\> Vs.-.-- ; v r :&&.;,,; ": i ,1, //..... ) \r-*- V; 1 ' kA '*^'v*>>'-' C c*'.'r' ; >* V ,-*VrC / '. <V"t**?! y '***'- j -:/ J_v ... xO y > '-*> j:#* / ...'*~* y*-' I' ; .v *i V" J:. . V*-. )-.',I. . *^v'rr i i- m-Jv- ' i ;s-.,4 fpical Coalinga asbestos ort Jkw soft pltitij structure. AMiMM^a At \ffrtfi Vn-*rteuii)i/1 Fig. 4. Low-Power Photo Micro^ra^:. of Coalinga Asbestos. \ / -., *. - p.v-'fe' . . -i ' . \ZSs`';L UCC 007615 .V Ai f. and drilling has been done to block ore reserves ahead of immediate needs for the plant. Geological inference would agree that there is a likeli hood that about 9,000,000 tons of material could be developed within a range of two miles from the plant. If we assume that this material would yield 10% asbestos fiber when milled (this is a lower assay than that ac tually used to date), then there could possibly be 900,000 tons of fiber. At 25,000 tons output of fiber per year, this possible inferred inventory of material could feed^ the plant 36 years at that rate of ore consumption. It has been generally voiced by California state geologists that "the Coalinga deposit is immense, aggregating hundreds of millions of tons," but the operators here agree that systematic exploration must be done ahead of actual pit work to outline and delimit the better quality of rock to allow some flexibility in blending and maintaining a uniform plant feed. Property and Claims Figs. 5 and 6 are reduced scale maps showing 'lie claims covering the min eral land held by Atlas Asbestos Company, iris land consists of several types of mineral claims and mining rights: 1. five-acre patented mill sites upon which the plant is located. 2. 340 acres of state mineral leases. 3. 200 acres patented fee land labeled New Mrta leas.-. 4. Approximately 2,700 acres of unpatented land covered by both lode and placer claims and well laid out to cover the deposit. y 11 MARSHALL and STEVENS incorporated ............ UCC 007616 ATLAS ASBESTOS COMPANY f l C M CLAI'JS a (T A T I L IA J iS ' . .'.,V The general layout of the claims, superimposed on the topographic sheet* is included here as Fig. 7. A general map shoving three asbestos mining operations is included here as Fig. 8. Past Operations While the Atlas Asbestos Company started operations in 1963, it was not until 1965 that the operation reached its stride with a production of 11,600 tons. The next year, 1966, output was 13,604 tons sold, followed by 13,056 tons in 1967. 1968 was the "big one" with 15,290 tons sold. In 1969, sales dropped back to 11,024 tons and rose a bit in 1970 to 11,802. Products sold in 1971 totaled 12,757 tons. 11,876 tons were sold in 1972 and 1973 output sold rose to 12,240 tons. gv ;- This plant has been described at 20,000 to 24,000 ton product capacity per year, but these tonnages could be achieved only hy two and three shift operation for ten to eleven months in a year. Tonnage output above 15,000 tons per year seems to have been limited by market and not plant capacity. Fig. 9 is a table showing nionth-by-month sales. Products Sold In 1972, the output was dominated by the AZ-ie pi fluct which accounted for 87% of the total. yDrill-bestos~^s next, accounting for about 87. of the sales; physically and for the most part, these two principal fiber products are very similar as shown by the following two sped:ication sheets. Naturally, the Drill-besto6 could be off-color and not the clean opaque white required for tile fiber. V *' 14 i: : '. UCC 007619 ^ * * / f. \ Fig. 8. Asbestos Mining Ope-raLions. ) A ni n U f, "n Tj Uj n u U U ' L 5 4?/ SCHEDULE OF ASBESTOS SALES BY TONS MA RCH 1963 THRU DECEMBER, 1973 1963 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER ------ -- `*3 302 389 317 931 805 560 577 999 795 TOTAL 9,718 % INCREASE/YEAR 1965% -OVER BASE 1?64 1965 780 721 755 991 33 289 969 700 555 910 777 545. 514 742 726 882 1,005 614 939 1,032 1,260 1, 251 1,410 1.295 > 7,020 . 11,670 49 V . 66V 0 1966 1,185 729 998 1,0 10 994 470 1,171 1,234 1,851 1,655 1,260 1.067 13,604 17% 17% 1967 781 698 950 917 995 425 625 1,529 1,346 1,573 1,585 1.432 13,056 (-4%) 12% mi 1969 1,882 1,463 1,325 1,080 1,178 734 703 1,612 922 1,383 1,60 1 1.407 991 745 1,503 1,432 1,364 583 60S 1,183 1,034 47 8 718 3C0 15,290 11,024 17% (-28%) 31% C- 6%) ( u.1 | LIn L1 jl LI n Li 1 -1. '-S L7iPJH; 1270 1971 .1972 . 1073 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER 541 728 1,230 893 845 575 * 501 835 1,447 1,549 1,432 1.286 781 848 610 897 1,554 944 1,075 1,834 902 1,111 971 1.230 1,321 1,256 1,029 1> 0 16 569 750 809 1,037 649 1,244 969 1.227 1C -T ^ 74 ri 7j< ; 16 7 5 1456 764 1137 17 4 7 1372 1195 227 5 39 TOTAL 11,862 12,757 11,876 12,240 V INCREASE /YEAR 7.6% 7.5% C-6.9%) 3.1% V OVER BASE 1965 . ,f- 4; . ^31% 1.6% .r - .."a---* 1.8% 4.9% UCC (107622 * ,3 . i A ! i 4 Jj Several other products have been made and sold but, when compared to the two leaders, were very small in tonnages. Plant or Hill Owing to the soft and disintegrated character of the ore itself, the mill process can be essentially a screening and vacuuming of the light platy fiber away from grit or harder serpentine particles. Naturally, the ore moisture must be reduced down to one or two percent before concentration. This description sounds simple, but a vast amount of machinery and pro cess is needed to produce a pure grit-free fiber. True, the crushing and grinding machinery needed for the hard type serpentine cross fiber chrysotile ores is eliminated here but this type of ore creates more dust and health hazard in its milling. Fig. 10 is reduced scale copy of a flow sheet of the plant and it shows the layout of the machinerv. It has been generally agreed that the plant lacks air f>r efficient con centration. Further, one more fiberizer is needed and a n,: of minor repairs should be made throughout the mill to the air syst"; . Cost of Production Four sheets have been included which show the direct operating costs per ton of fiber to be as follows: 18 - 1 . *.*+*,++*, > > -y. . UCC 007623 1_.V * .j MARSHALL and STEVENS incorpoftttf . .... ,, Year 1972 1971 1970 1969 1968 Fiber Tons Sold 11,877 12,757 11,862 11,204 15,290 Direct Cost/Ton* $48.29 48.83 49.93 49.28 49.49 Possible MLsc.Exp. $6.25 5.90 6.35 6.65 4.90 Probable Total $54.64 54.73 56.28 55.93 54.39 At 15,000 tons fiber per year, the total costs have been estimated at $57.83 per ton for the year 1974, with no changes or improvement. By changing the mining^ methods and plant operations, it has been esti mated these costs per ton can be reduced to $53.85 for 15,000 ton rate, almost exactly $4.00/ton savings. With major capital expenditures totaling $315,000, it is estimated the costs can be reduced another $8.00 down to $45.82 per ton on the 15,000 tons per year rate. Three calculations of operating costs have been p -de on the tollouing premises: 1. Calculate costs of product 10.000 tons/year fiber 15.000 tons/year f 1 be r 19,375 tons/year fiber 28,125 tons/year fiber - . 182 , .64 . :ins wet ore ' ons we t ore 'ons wet ore ' .ms wet ore 2. 1)86 output -- 40 tons/shift 37.5 tcnr./shifl 35.0 to; s/.;h i f t 1 s i si i i f t 2nd shift 3rd shift let Shift 8:00-4:00 2nd SU i: t 2 r<* Sli i l l T ntal One Shift Ttoo Shift three Shift 10,000 10,000 10,000 9,375 9,375 -- 8,750 10,000 19,375 28,125 i?:>- - 19 UCC 007624 MAR$HALl and STEVENS incorporated ' *-r - itin* ti' IJ 3. Use $0,048 for amortizing overburden removal. 4. Use D-7 dozer to feed new belt feeder to vib^rating grizzley over new 45 ton feed bin. @ 10,000 tons cost. Feeding ore 1. 33 hrs./shift x 250 Other 1. 00 hrs. shift x 250 333 hrs. 250 hrs. Total 583 hrs. Fuel: 4,081 gal. @ 22c M&R Parts 1.60 x 538 M&R Labor & Serv. Depreciation: 5.50 x 583 Insurance = $ 900.00 - 932.00 = 1,749.00 @ $3.00/hr. = 3,206.00 as 1,700.00 D-7 Loader & Dozer: Tons/vear F-0-G M&R Parts M&R Labor Deprec. Ins. (Put in G&A) 21 10.000 $*''900 } 932 1,749 3,206 (1_,700) $ 6,787 1.5 15,000 $ 1,350 1,398 2,624 4,809 (1.700) $10,181 2.0 20,000 $ 1,800 1,864 3 14"8 4,412 C,700) $13,574 3.0 30,000 $ 2,700 2,796 5,247 9,618 (1.700) $20,361 5. Road Grader (Cat 12) Include under "Finish Product Handling. 11 6. Fork Lift Tons/vear 1.0 10.000 1.5 15,000 2.0 20,000 3.0 30,000 F-O-G M&R Parts M&R Labor Tires Depreciation Fork Lift Total D-7 (from above) Total Other TOTAL MOBILE EQUIP. 240 1,000 120 2.700 4,060 6.847 10,907 2.558 13,465 360 480 1,500 1,750 In D-7 a bove ISO 240 2,700 2.700 4,740 5,170 10.181 13,574 14,921 18,744 2.620 2,860 17,541 21,604 720 2,500 360 2.700 6,280 20.361 26,641 614 27,255 20 A- MARSHALL and STEVENS incorporated UCC 007625 7. Operating Labor - Milling (Processing) Classification 1st shift Rate Shift 2nd shift Rate Shift Leadman Mill Equip.Dozer Man Truck Driver Mill Oper-A Mill Oper-B Mill Oper-B General Work Bus Driver No. Men 8 $5.17 4.70 4.70 4.22 3.95 3.95 3.59 3.59 -- A- $10,340 ` 9,400 9,400 8,440 7,900 7,900 7,180 7,180 $67,740 MER used 1 shift(10,000) 2 (20,000) EEO 3 (30,000) $67,500 67,500 67,500 $5.29 4.82 4.82 4.34 4.07 4.07 3.71 3.71 -- $10,580 9,640 9,640 8,680 8,140 8,140 7,420 7,420 $69,660 $69,660 69,660 $70,940 8. M & R Labor (Mechanics) Classification 1st shift Rate Shift 2nd shi ft Rate Shift Mechanic Leadman $5.17 Mechanic A 4.70 Mechanic Helper 4.22 Total $10,340 9,400 8,440 $28,180 $4.82 4.34 $ 9,64'! ,6,m> $18,320 3rd shi Ct Rate Shift $5.37 4.90 4.90 4.42 4.15 4.15 3.79 3.79 --- $10,740 9,800 9,800 8,840 8,300 8,300 7,580 7,580 $70,940 $ 67,500 136,920 208,100 3rd shift Rate Shift $4.90 . *42 $ 9,800 8,840 $18,640 10.000 tons 20.000 tons 30.000 tons $28,180 28,180 28,180 $18, VO 18, t.'O ,640 9. Dryer Burner Oil 436 x 103 Btu needed/Ton Feed 1 157 436 x 1()3 .66 (eff.) * 661 >: K)-' i.:/'I -n Ore 20,000 x 103 661 x 103 = 30 ions/hi. u . .1, Coalinga oil Is 150,150 I'-v per sal- 661,000 t 150,000 = 4.40 ,n';./t,ut 4.40 x $0.1024 - $0.45/i ! feed at 30 tons/hr. - 132 gal./hr. or $13.50/hr. or $108/sliift. 250 shift - $27,000 500 shifts - $54,000 750 shifts - $81,000 $28,180 45,500 64,140 21 MARSHALL and STEVENS UCC 007626 The above calculations assume the present dryer 4V x 40' is large enough to handle 40 tons per hour and do the job. If about 30% is scalped off by the trommel, then 43 tons of feed per hour can be treated. Further, 66% dryer efficiency on this type of material can be high and the efficiency could be as low as 50 to 55 percent. During the wet season with the high air humidity and greater moisture con tent of the feed, drying may be a bottleneck for full capacity. Residence time plus stirring and tumbling may greatly add efficiency to the drying operation by means of a 20' to 30' long heavy screw conveyor working in a closed tank. This would utilize the latent heat from the dryer and cool down the dry ore before dumping it into the bin. Cooler dry ore can help the caking problem in the bin. Naturally, the present dryer above will work at much greater efficiency on a three shift around-the-clock operation. Should the plant be run in a ten-day back-to-back campaign greater efficiency (.mild also be achieved rather than five daya plus two shut downs calendar week. Latent waste heat from the dryer could be directed around the bin to avoid the caking problem. *7 10. Bags Use budget figure of $3,939 per ton of fiber. This is about 10c per plastic bag each. 11. M & S Other Than Bags Use budget of $1,332 because of planned better efficiency of new installation. 22 UCC 007627 .-ft? y <- T.,-r .*&. MARSHALL n0 STEVENS incorporate} S 12. M & R Parts (other than mobile) Use budget of $0.666/ton. 13. Utilities - (other than phone) Use for 10,000 ton 15.000 ton 20.000 ton 30.000 ton rate - $19,800 rate - 26,822 rate - 32,366 rate - 36,000 1.980 per ton fiber 1.780 per ton fiber 1.618 per ton fiber 1.200 per ton fiber 14. Telephone Put In CoalInga G & A. V 15. Employee Benefits Union Non-Union Holidays Vacation F1CA SUI FU1 Work. Comp. H&W TOTAL 4.40 4.00 4.85 4.10 0.58 3.40 10.40 31.73% -s-- 4.00 4.85 4.10 0.58 3.40 -- 16.93% 16. Depreciation Total $37,818 15,000 $52,818 1^. Finish Product Handling (Total Costs) 10.000 15.000 20.000 30.000 F-O-C M&R Parts M&R Labor Tires Deprec. 2,716 1,950 1,575 1,090 3,900 4,074 2,925 2,363 1,635 3,900 , 5,432 3,900 3,150 2,180 3,900 8,148 5,850 4,725 3,270 3,900 UCC 007628 , *\t \ .J ( 18. Finish Product Handling (Other) Operating Labor Tons Warehouse Forklift Truck Driver 10,000 15,000 20,000 30,000 $ 8,440 8,440 11,253 16,880 $ 9,400 10,288 14,100 20,576 19. M & S Other Than Bags Tons Pallets V Etc. Slip Sheets 10,000 15,000 20,000 30,000 1,390 2,085 2,780 4,170 $2,560 3,840 5,120 7,680 20. Equipment Rental (Tractor) 10,000 15,000 20,000 30,000 $13,050 14,035 15,000 16,956 21. Property Rental (Coalings Warehouse) $4,200/year (All units) Total $17,840 18,728 25,353 37,456 Total $ 3,950 5,925 7,900 11,850 Plant Improvements Several improvements are schedules for the plant and chief of these is more air or another fan unit. This is needed not only to meet plant ex pansion and recover more fiber but also to meet the new standards set up .by EPA and OSHA. Another hydraulic packer is needed to eliminate a bottle neck at this point. =4 i r. ^ Several minor but important plant items are needed. These are: 10, 000 Ton 10.000 Tons Fiber/Tear Item-Mobile Equipment 95,000 tons ore wet Milling Unfin. Unit Cost Finish, Prod. Cost Finish, Unit Cost 3 Fuel Oil Grease 4 M & R Farts .,4.. 5 M & R Labor 6 Tires ui. 7 Depreciation 11 Sub - to ta 1 , ^ i-'\ . 13 Contracts Mining , 45c/ton '/ $42,750 14 Operating Labor 15 M & R Labor 16 Dryer Burner Fuel 17 Bags 18 M & T (Other) 19 M & R Parts (Other) : 20 Equipment Rental * 21 Utilities (except phone) 23 Heating 24 Property Rental 25 Super., Office Sales 26 Employee Benefits 31 Depreciation 32 Amortization @ 4.10c/vet ton (ore) 3,880 33 Misc. Taxes 34 Sub-Total $46,630 $ 1,540 2,180 2,070 270 7.410 $ 13,470 -67,500 25,200 28,730 39,390 13,320 6,660 -- 19,800 2,400 -- 13,200 32,594 52,818 --$301,612 $ 0.154 0.218 0.207 0.027 0.741 $ 1.347 $ 2,720 1,950 1,575 1,090 3.900 $11,235 -- 6.750 2.520 2. 783 3.939 1.332 0.666 -1.980 0.240 -1.370 3,259 5,282 -17,340 --- -3,950 -13,050 -- 4,200 6,160 -- --- $30,161 -900 $46,100 $0,272 0.195 0.158 0.109 0.390 $1,124 -1.784 -- -- -0.395 -1,305 -- -- 0.420 -- 0.616 -- -- 0.090 $4,610 TOTAL . Total Cost/Ton Tiber >.v***`*.' `'W' ~v*r ' , $46,630 $ 4.663 $315,082 $31,508 $31,608 $57,335 $5,734 $5,734 -r 25 * ucc 007630 , JL-i .. U*BSM*I t *n4 STEVENS inr.'yrrm'M 15, 000 Ton Item-Mobile Equipment 141,175 Tons Ore Wet Mil ling Hi 000 Tons Fiber/Year Unfin. Unit Cost Finish. Prod. Cost Finish. Uni t Cost . 3 Fuel Oil Grease 4 M & R Parts 5 M & R Labor 6 Tires -' . ` 7 Depreciation 11 Sub-Total >; ' 13 Mining Contract ' $63,530 14 Operating Labor 15 M & R Labor \ 16 Dryer Burner Fuel 17 Bags 18 M & S Other 19 M & R Parts Other 20 Equipment Rental 21 Utilities except phone 23 Heating 24 Property Rental 25 Super- Office Sales 26 Employee Benefits 31 Depreciation 32 Amortization 4.1c/ton wet 5,788 33 Mi sc. Taxes 34 Sub-Total $69,318 $ 2,110 3,148 2,944 330 9,009 $ 17,541 -- 104,474 37,800 42,410 59,085 19,980 9,990 -- 26,822 2,400 -13,200 47,407 52,820 -- -- $416,388 $ 0.141 0,210 0. 196 0.022 0.601 $ 1.170 ' -- 6.965 2.520 2.827 3.939 1.332 0.666 -- 1.788 0.160 0.880 3.160 3,321 $ 4,074 2,925 2,363 1,635 3,900 $14,897 18,788 --5,925 -- 14,025 -- 4,200 -- 6,692 -" -- $27.758 -- 900 $50,530 $0,272 0.195 0.158 0.109 0.260 $0,994 -- 1.253 -- -- 0.395 -- 0.935 "-* 0.280 0.446 -- 0.060 $3,369 TOTAL Total Cost/Ton Fiber $69,318 $ 4.620 $433,929 s?R.928 .8.928 $65,427 $4,363 $4,361 *r's v... .i * 26 UCC 007631 's&.'ate - WAR?HAtL a*d STPVFNS 4. . . ' 0 19.375 Tons Item-Mobile Equipment 182,500 Ton8 Ore Wet Milling 3 Fuel, Oil, Grease 4 M & R Parts 5 M & R Labor 6 Tires 7 Depreciation 11 Sub-Total 13 Contracts Mining (1 45c/Ton Wet $82,125 14 Operating Labor 15 M 6. R Labor ' 16 Dryer Burner Fuel 17 Rags 18 H & S Other 19 M & R Parts Other 20 Equipment Rental 21 Utilities except phone 23 Heating 24 Property Rental 25 Super. Office Sales 26 Employee Benefits 31 Depreciation 32 Amortization @ 4.l0c/ton wet 7,500 33 Mi sc. Taxes 34 Sub-Total $89,625 $ 2,596 3,739 3,739 620 10.288 $ 20,982 .. 133,240 45,200 49,000 76,400 25,950 12,900 -- 31,420 2,320 -- 13,200 58,550 52,820 __ -- $501,000 19,375 Tons Fiber/Year Unfin. Unit Cost Finish. Prod. Cost Finish. Unit Cost $ 0.134 0.193 0.193 0.032 0.531 $ 1.083 $ 5,270 3,778 3,061 2,112 3,778 $17,999 $0,272 0.195 0.158 0.109 0.195 $0,929 __ _ 6.877 2.333 2.529 3.941 1.339 0.666 -- 1.622 0.120 -- 0.681 3.022 2.726 24,600 -- --- 7,650 -- 15,000 -- -4,200 -- 9,700 -- 1.270 -- -- -- 0.395 -- 0.774 -- -- 0.217 -- 0.501 -- -- $25.85^ 900 $62,050 0.046 $3,203 TOTAL Total Cost/Ton Fiber $89,625 $ A.620 $521,982 70.941 5 .941 $80,049 $4,132 $4,132 27 UCC 007632 MARSHALL tod STEVENS iftco>por*tl 28. 125 Tons Item-Mobile Equipment 264,000 Tons Ore Wet Milling 3 Fuel Oil Grease 4 M & R Parts 5 M & R Labor 6 Ti res 7 Depreciation 11 Sub-Total 13 Contract Mining $118,800 14 Operating Labor 15 M & R Labor 16 Dryer Burner Fuel 1 17 Bags 18 M & S Other 19 M & R Other Parts 20 Equipment Rental 21 Utilities except phone 23 Heating 24 Property Rental 25 Super. Office Sales 26 Employee Benefits 31 Depreciation 32 Amortization @ 4.10$/ ton wet 10,825 33 Mi sc. Taxes 34 Sub-Total $129,625 $ 4.345 6,140 5,830 760 10,180 $ 27,255 -207,620 65,140 63,800 110,800 37,600 18,600 -45,000 2,400 -- 13,200 86,550 52,817 -- -- $703,527 28, 125 Tons Fiber/Year Unfin. Unit Cost Finish. Prod. Cost Finish. Unit Cost $ 0.155 0.218 0.207 0.027 0.362 $ 0.968 -- 7.382 2.316 2.268 3.940 1.337 0, 1 -1.600 0.085 -0.469 J.077 1.878 $ 7,660 5,445 4,446 3,075 .3,100_ $23,726 -- 35,500 -- -- -11,100 -16,600 --4,200 -- 12,010 - $0,272 0.194 0.158 0.109 0.110 $0,844 -- 1.262 -- -- -- 0.395 -- 0.590 --- 0.149 -- 0.427 --- S25.012 -- 900 $80,310 -0.032 $2,855 TOTAL Total Cost/Ton Fiber $129,625 $ 4.620 $729,7o. $25,981 $104,036 $.981 $3,699 $3,699 28 UCC 007633 fr . MARSHALL and STEVENS ifK<xpo*d Several minor but Important plant Items are needed. These are: 1. Cover or canopy over the feed bin plus a larger bin to allow D-7 feed to plant and grizzley. 2. Asphalt black top yard and trailer parking area. This will eliminate most loading problems and even allow storage space for palletized fiber in corners and unused areas. 3. Provide a new shower and change room or renovate the present one plus possibly one more toilet in mill itself. 4. Dust control and floor cleanup to show the best possible clean housekeeping. 5. Study methods of dust control of tailings. A cheap asphalt spray over permanent older tailings piles could eliminate much 'of the air-borne dust and asbestos background count of the areas. 6. Should the dryer prove to be inadequate, the addition of a cooling trough could possibly give the little extra added drying capacity to avoid the necessity of another or bigger rotary dryer. Also, the action of such a screw conveyor could be just what's needed in the way of a "fluffing" opera tion to improve recovery. 7. A complete check, renovation or repair nf the air or "vacuum system" to eliminate leaks can work wonders lo improve toe day-to-day operations. 8. Another place where flexibility i- plant perttion may be achieved is by extension of the pit to 'be southeast into higher grade material where a sci r i -'nr grade stockpile can be made up to draw from whem `-r ",wee loner" is needed. This gives your superintendent a .nano- > smooth out break downs and emergencies without explain. why output could be a bit low. These plant improvements and renovations me ostinued >>y your staff to total $315,000. It is this writer's opinion that an additim il $50,000 should be budgeted for additional plant cleanup and additions to meet EPA and 0SHA requirements. This fund can be calculated as follows: Amount Yr. for Int. Rate Interest 1 $365,000 9% $32,850 2 292,000 9% 26,280 3 219,000 97. 19,710 4 146,000 97. 13,140 5 73,000 97. 6,570 Annual Payment $73,000 73,000 73,000 73,000 73,000 Total Payment $105,850 99,280 92,710 86,140 79,570 If we take the payment for the first year o f $105,850 and divide it by thi several outputs we get^ the following: - Annual Rate Total Payment Cost/Ton Fiber 10,000 15,000 19,375 28,125 $105,850 105,850 105,850 105,850 $10.5 7.06 5.46 3.76 TWo other Items of cost: must be included and these are selling costs and total G&A for both Coallnga and Alhambra. These are estimated from past records and budgets as follows: Tons Fiber Per Year Cost Selling 1 *tal t. 6 A 10,000 15,000 19,375 28,125 $3.03 2.02 1.56 1.08 $6.40 4.26 3. .12 2.28 Assembling and compiling ail these various costs laves a table* showing these cost centers for the several tonnages of fiber annual outputs as follows: 30 UCC 007635 'V 4 Tons/yr. Fiber 10,000 15,000 19,375 28,125 Mtn. Cost $4.62* 4.62 4.62 4.62 COST PER TOM RECAP OF VARIOUS OUTPUTS Mill Produc t MktE. SellinR $31.51 28.93 26.87 25.98 $5.73 4.36 4.13 3.70 $3.03 2.02 1.56 1.08 Total G&A $6.40 4.26 3.32 2.28 Int. 6 Cap.Exp. $10.59 7.06 5.46 3.76 Total $61.88 51.25 45.96 41.42 With these estimated costs and value for the fiber output an economic balance sheet can be set up for the various annual tonnages; Tons Sales at $55.72/Ton+ Total Costs Net Before Fed.A St.Tax 10,000 15,000 19,375 28,125 $ 557,200 835,800 1,079,575 1,567,125 $ 618,800 768,750 891,143 1 ,164.928 ($ 61,600) 67,050 188,430 402,187 Thus, it would seem from the above that the "break-even" output, even after expansion of plant, would be around 12,000 trms/year. Even with the time needed to Install the mill improvements, it would ap pear that for the year of 1975, 20,000 i > 22.''.;0 tons could be a target figure to shoot for. Then, it seems that It -lion Id be possible to aim for 28,000 to 30,000 tons for the year of 19, , Tor each year there after. * $4,663 here but used $4.62. + Calculated by EE0; compares with MWR's $55.59. 31 UCC 007636 1 f S 4 i MARSHALL ar<5 STEVpNS ine<yt<vst*4 ^ - ? 'A - - ---................. - - li- ' >* if />r<.'-*/<. -/4t't 7 /%/0&O // ------ <^io^7-y^r. /v;-., v. 'f~ Sf -:y :,.,,,, ; /-re? Ij ^2.- <k-** l^'- ]1 -S ., || T Oa<-Cs JS Jtes/rtst"* 11 (}-lL&Ut(C> dt'A' c ,- > y . -', ; :/ * . */ * * ^Z^TgC<3 TcrU w; -' ,,;/~ ' /ZSS/t-.- ^j 0S* j *"& offse/ 7~2hots/& & C' />~<r yy#s: t: i> . \ i-S . 32 , ` 9' ' '-.+-'? ' 4 UCC 007637 . t 1 K>*rfcJf-i _ iiri 4 It is possible, as pointed out by your management, that surplus capacity can be achieved for an emergency surge of production by using a fourth shift to increase productive campaigns to full 30 days per month. Some efficiency would be sacrificed in this manner because Che four-day down time every two weeks would be lost and thus this valuable repair work time would not be available. Further, to work well the fourth shift crew-would need to be used effectively a full 20 days a month or they would seek employment elsewhere if many lay-offs occurred. EPA and OSHA Health Requirements Asbestos mining and milling has always been considered a hazard to health due to dust and fine particles. In recent years, we have the entrance of two new federal agencies with power to enforce standards on the industry. Both OSHA and EPA seem to have power to enforce regulations and even levy fines for what they consider non-compliance. Even the test standards for particles ol nshosi.-> of five fibers larger than five microns per millllter of air cannu ho checked by two different men using identical equipment. Until we have c<cimiques accurate enough to give Identical test assays, all the industry can do is use their best Judgnent as to the probable standards which will eventually be established. A report prepared in 1971 by the National Academy of Sciences and Engineer ing on "Airborne Asbestos" under the chapter heading "Research Needs" states: 33 A. UCC 007593 ' ' . -`.hNl?. VJf \ aft tfp * -r r - .... r* Vj- .l%*, -*Vjc-'.t* . 7W-'+ i- ' ; ' . .'s', \ 7-~t '&.*<.. T *,. * - -x->**:/ - :.?it, r.. .. ry> -. Two recent'report*^*f^ have discussed In some detail the many . , kinds of research needed to answer pressing questions concerning - the effects of asbestos on health and the degree and nature of necessary controls.?;Investigations along the following lines should be given.high priority. -;' . Study of tha mechanism of action of the asbestos minerals should continue, with particular attention to carcinogenic effects. It is important to lMtfe*npre about the influence of asbestos type and fiber else oit respirability, deposition, retention, trans location, and effedts^pt the tissue, cellular, and molecular levels with and without^QoJactors. : It is especially important that the role of fibers belqsrVthe IM range be clarified. Methods'of'sampl^^^fdentlfylng, and quantitating airborne asbes tos need contlnuBo^eyelopDent. Coordination with studies in animals and manistsssential to ensure that environmental data will be biologically relevant. Similarly, methods for identify ing and quantitating-aabeatoa in biologic tissue need development and application. \y- ^7 V;* a*'* ' < "t t\, '~*+k ivy **v:r . -,r ` Quantitative mathadsijfor measuring airborne asbestos should be applied widely tdlMtfermine the natural background and the con centration and diifcrifidtionof fibers in the air near various sources. Conveotiqgal LM methods and EM methods should be ap' plied simultaneously in salactad occupational and community ^.aitueti^^^^ ***' ; 'Uf.r m T$' V - -i !?>.! M:.ClX . * ..More epidemiologic studies ere needed. Populations in several dlfferent.exposureranges should be stidues, Including occupa- \ -H' 'tional, bou*ehold,,and neighborhood exposures, special studies > of meaotlMlieime are':heeded to determine whether the incidence hoe-bean increaslngaadto determine the current pattern of dis tribution A;;large series of routine autopsies should be studied be determine whether causae of death can b.* related to amounts of r\` 'J* - y-ffi asbestos in the. lungs end other organs. All the above are urgent if s tsnai sf wfe excowirt ta to be established with confidence. (Underscoring supplied) vv*- .iV m. 2S : Crally, L.J.( HyC. Cooper, W.S. Lainhart & M.C. Brown, "Research on ><xBaalrh gffedtuofAabastos. - J. Occup. Med. 10:38-41, 1968. `67; Ifcfbieg grdwp- om- Asbestos and Cancer Report and Recommendations of j& ^-i. VV)rfcljagE.^|^PP.^orvex-i under the auspices of the Geographical Patbdlogy';Cneedttee of the International Union against Cancer. Envlan*aent{/ileelth 11:22- , 1965. ;.u *h Wm rftliinA W.; j. * UCC 007594 MAftSHAU m6 STEVENS iiftftf -irT . .I -1-.K i< y- ...., i. ' Until we get answers, to these questions sb cited above, we don't really ' r?r, - =' li5 4_ >. N . knowhow far; to go in att^pting^to meet standards. Hfi v j -* ; . yM'4-- y r*.f*>>v^- All we can plan todd'intbls regard is to keep as clean a mill as possible :' 'ir " ^ >i-' : .7 yt within the cost budgeted-f^|impr6veaiants. Further, it would seem possible V'^ to allow modest price!ind&ftees for the product to allow more health and pollution measure*^! '--tv- It could be' that even!pi fere needed to meet government regulations, per shift will be required on nothing but cleanup work ana.s^e^uta^bscomes necessary, the price for the fiber must ,iy =S. Increase about* $l-pifc Mcover this alone. \Just because. aabeftos ?.*. '5#Xv-. seems nq.rreeaaaaemm, CtdO const asbestos, itfc asny ixt*mSa Ssieh environment and health problem, there jVljp .' thls wlll close down the industry. We need v;*'y lit life end the price must be adjusted to pay xm to work under healthy conditions. "v. ; I*-:; method of coating and stabilising permanent tailings dumps to minimize wind- controlled with water as is now dumps contribute more asbestos in pit or even undistrubed hillsides. UCC 007595 MAA8MAU MW sreVws * r&: ~ -Y>: 4s-' ** f; H. w* ?. 1 &* r.. fc' fc;,, W" m .v^y. -r o Hi'i.\ .. i... * .v_. <*?! ";IK<S*'' Marketing and Prices v 5 <v . , The asbestos product fromithis.area is chemically the same as chrysotile , ' - -Mi-- - ' mineral or serpentinite and: has been labeled chrysotile. However, the mats and flakes of pure Coalings-mineral are so different from Grade 7 ~*s; Quebec product that it' should be labeled with ltB own appellation. It : is suggested that the. tent ,1Coallngiten or "Idriaite" be adopted to dis- tinguish this unique Mnerai product. From the utility standpoint, this product replaces Grade 7 chrysotile for A-\ floor tile in the ratio of 10 to 18 percent. With Quebec Grade 7 chryso tile selling for $50.00 per ton, this Coalinga product should receive $50 i-- _J(rr Jti' J. t 10/18 " $90. Further'i^h whiteness of the Coalinga mineral reduces the need for costly titanium^bxide from five percent down to three percent and this alone would be 40 pounds less of the costly and scarce titanium oxide per ton of tile'mix. jVi'-. -- y v. t , Thus, we can a#e that'from Che standpoint of utility and replacement of ' - i' Quebec Type' 7 chrysotile, ' the Coalinga product should be priced at double -T .. -i-'.-* -. the price for the Quebec owterlal. Today $100 per ton for Coallngite " * v- r * would be realiatic . ; .`r5 , ; ' . *' * '.. 'for the past decade in the development of markets for this new unique min- r .. j v.^aral product It was unfairly priced as Chrysotile Grade 7 before its .. .. ' ' .. adaptability and ratio of substitution were know. . - jj&'i'!-'-,.-- s ' Further, Johns-Manville 'may have iMnted to knap the price of the Coalinga mineral in line with , . !*- -V; thiVCrad* 7 product. :-'v'; 36 UCC 007596 MARSHALL and STEVfflS incorponMd^ -a.:,.. 0 - - t-5V 7 < [*;S' " r V"% ',.. 5-.y*rs.. f . it i- tMM. For these reasons, it may be that a greater price increase for the Atlas asbestos is long overdue and.lt should be priced according to its adapt ability rather than a historic "bargain" price used to create markets and gain a toe hold in the business. In this regard shouidn.'tvrAlas today scan very carefully a page from the book guiding the Arabs?'"/' . Recommendations ,>BT V Uich customers from Johns-Manville now coming to Atlas, it would appear that Atlas can now sell all the product they can make. Even with a tempo* r. ' - rary slackening in demand for tile (should it occur) there still seems . .i- almost an unlimited markets for the limited capacity of the Atlas operation. . -0 For thia reason;careful consideration should be given to the program of mill renovation and supplementation costing between $365,000 and $400,000 and boosting the present capacity from 15,000 to 20,000 tons up to 28,000 to 30,000 tons per year. At the same time these capital expenditures ate needed to meet improve ment* in heelth standards for OSHA and EPA compliance, and allow extra air for Increased output and produce a new product - AZ-100. Without ^'about $150,000 to $200,000 (approximately half) the capital expenditures, u,Vthe operation would be forced to close on November 28, 1974- It is your '^management's suggestion and plan to supplement these required expenditures with a Ilka sum and put the operation on a more efficient economic basis. * ' 1` 0 ` '' A'0: ;. I i i a '4 1 37 UCC 007597 *Vwli jfc,-a* MARSHALL nd STEVENS tempo*** - .....,....r\f ' ?; ^ .;v;- , " - * t* \ r-: >'* t r" t > * : ' - >,: . "* ^ ' -' y* "IV*. ': '* . ,. Iki :K . ' . ' -'*' +. *v`/: ' 'v . For these plans we agree that conditions appear to justify this expendi** ' ^ ture of between $365,000 and $400,000. / <_ 4* * ;\vr is: Jr '"`'-a. v ft" Valuation of Mineral Unit ' `V >.( V.v. } ^ . - . . J`?y For the valuation of the complete.operating unit with the capital expend1- %* tures and on the prantse^tf-^costa and product prices as developed above, a table for a minlniusj%<^^as computed. t!T :r:. V t: - -a*? In this confutation, we'lu^fprovided for re-capture of the additional- , , \'`"i '.rfJr-*l' * capital investment of$365,000 over a 5-year period, or $73,000 per year. C* Depreciation over a 15-year period as shown in a preceeding section of this analysis has been computed at $52,818 per year. A suunary of the resulting valuation, daI&Sj?V12X rate of return In the investment is as follows: ; Met';'`7fDeprec76t' ?*;After'^; Recap.of Year '* Tax ' ^Add.'lev*. Cash Flow Return n Invest.* Excess to Min. Rights 1974 P.V. g 12% 'r'i MS 1974 ' $148,352 !>125V81* $274,170 1973-78 .,304,304 ,125,818 V 430,122 1979-88 . 304,304 i -.52,818' 357,122 "r-Vj&fr-dT''* t!` -v^'RouBded to . $125,000 125,000 125,000 $149,170 305,122 232,122 $ 133,188 827,466 661.033 $1,621,687 $1,622,000 i ` '*, Ji- levastmant ' $1,054,000 Present Facilities 196,000 Working Capital _jV '-T 'J-CMtf'- ^:SMKSmMftm!^^81.2SO.OOO ovr opinion, the fair market value of the min* concern stay be reasonably stated as i * ^9 ; &${& S 131'*.' MAB8HAU v* STEVENS Wcarpemlaa " UCC 007598 V '<?* "#'> 'W*'.** >, T-v-n^if v- < UCC 007599 V Li, D n >i u J3 n D nLi . '') T L, - '" v, * .: < ^ATLAS AS.8EST0S CO SCHEDULE OF MINING PROPERTIES 4. . LOCATED IN "f FRESNO COUNTY, CALIFORNIA i if' PLACERS - >- ? . RHODES-MINGU5 MINING DEED CLAIM NAME CONDON GOOD FRIDAY WHITE CREEK 81G WHITE JOAQUIN CRESTA .BLANCA PROSPECTOR LONEPINE : ORIGINAL RECORDED^; DATE :v BOOK . . <&$*4-24-24- 4-24-24 444 448 4-2 4-24 , 450 4-2i-24? 442 4-24-24 4-24-24 4-2-24 4-2-24 .v\US; '-` 447 451 440 439 ' *>' Jiife PAGE 448 160 145 309 290 124 312 349 ; ,.WCONN MINING DEED ww* : ' ti.' CLAIM NAME ORIGINAL - RECORDED DATE BOOK PAGE WHITE HILL ii ii 5-25-56 Vsv.^:' 3774 LAKE PASS .*.. '5?*l4-56 3769 FISH `80WL :;a~*6-57 . 3869 TRIUMPH. BOBCO 14 #<4fYi^^^|f.l45-5-577- , 3864 3898 " (VOID?) ; BOBCO 5 . , J-I5-57 3898 aVCVOID?)/ TAILWIND *-"> ;.5-l4-j!i 3769 --?.rwiV'/.x '3-' _ 591 130 656 322 480 482 129 AMENDED RECORDED DATE 800K PAGE 1 i 3-26-56 3-26-56 3745 3745 2 32 231 AMENDED RECORDED DATE BOOK 8-25-61 9-27-61 5-24-56' 4601 4615 3774 PAGE 45 " 366 76 7-30-57 8-25-61 7-30-57 8-25-61 5-24-56 3954 4601 395.4 4601 3774 614 43 ;! 615 41 75 2,1 N&^.;i :p~ jv.-^r.v./i'aifc UCC 007600 OJWWH . '``V* VP , >*...- 11 ' * ' ATLAS ASBESTOS CO. SCHEDULE OF MINING PROPERTIES LOCATED IN FRESNO COUNTY, CALIFORNIA PLACERS i ----------------- CLAIM NAME '.ATLAS ASBESTOS CO. ' t: " r::- ORIGINAL RECORDED DATE; BOOK PAGE ROVER LAKE PASS 82 NEW FISH BOWL NORTH STAR NEW TRIUMPH 14 GAOCO 81 GAOCO 82 BIG BLACK BIG LAVENDAR BIG GRAY .BIG GREEN BIG BLUE BIG.RED BIG SHAte HAYDAY 11 '.2-3-8:^': 9-28-6f 9-28-61 9-28-61 9-28-61 . 6-22-59 6-22-59 4-10-56; 4-10-56'^. 4-10-56 ` 4-10-56 4-10-56 4-10-56 3-26-56 4-3-62 4023 4615 4615 4615 4615 4237 4237 3752 3752 3752 3752 3752 3752 3745 4701 572 580 576 574 578 658 659 354 355 356 357 358 359 230 268 ,.NV, :J>,>>- ; V i- amended RECORDED DATE BOOK 2-5-58 t | ; ' 4173 PAGE 288- 1 . *r k ( - -*9 *++*** ,1V" V .i 'An.i.n*! - n " ATLAS ASBESTOS CO. SCHEDULE OF MINING PROPERTIES LOCATED IN - FRESNO COUNTY, CALIFORNIA LODES 0 ATLAS ASBESTOS CO. 0 if r-i -a - ( L.. ,, A '; ` ' 0 0 v ; .'5 :: IJ ft" . .> ' *$>m. CLAIM NAME ORIGINAL RECORDED DATE- BOOK ROVER '-irV1'. . 12-29-58 4154 HUNGRY JOE 2-9-69 4174 POTLUCK I 12-8-58 4145 POTLUCK 2 12-8-58 4145 POTLUCK 3 12-30-58 4155 MIKE 1 8-26-59 4265 MIKE 2 8-26-59. 4265 MIKE 3 8-26^59; 4265 MIKE 4 8-26-59}. 4265 MIKE 5 8-26-5.9 4265 MIKE 6 8-26^59 4265 MIKE 7 . 8-26-59 4265 MIKE S . ; 8-26-59 4265 MIKE 9 - 8-26-59 4265 MIKE 10A 10-6-59 4282 MIKE 11 11-9-59 4296 MIKE 12 11-9-59 4296 if MIKE 13 8-26-59 4265 Vtf MIKE 14 . 10-6-59 4282 W MIKE 15 v%^10-6-59 4282 MIKE 16 : Vvl0-6-59 4282 MIKE 17 i , ;#^;I0"6-59 4282 MIKE 18 ` v ^^'10-6-59 4282 >* MIKE 19 : . v~i 10-6-59 : 4282 MIKE 20 i 10-6-59 4282 MIKE 21 7 10-6-59 4282 MIKE 22 ' ; '10-6-59 4282 : MIKE 23 "C ^"'10-6-59 4282 MIKE' 2% ;?Wi#-*-59. 4282 V". -.r: \V;^n-io-60, 4464 V .11-.1O-60 4464 : jD*3 -I't'-v.'- . .-ir wr* ; -Url0-60 4464 PAGE 282 525 341 340 198 167 168 169 170 171 172 173 174 175 142 293 291 176 143 144 145 146 147 148 149 150 151 152 153 196 198 202 AMENDED RECORDED DATE BOOK PAGE - . .\ 2-5-59 i 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 8-9-60 3 4173 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4424 4 424 4424 442 4 4424 246 . 106 108 no : 112 : 114 * 116 118 120 122 -A 124 126 = 128 . 130 = 132 134 : 136 's 138 ^ 140 142 $ 144 T 14*6 .J '-u*Sk 150-j 152 j J ? *'JS| . V***S5*| UCC 007602 4s ' :'4* . '4 ^ / v. -^vr ^ATLAS' ASBESTOS CO. ' -' SCHEDULE OF MINING PROPERTIES ` LOCATEO IN -. FRESNO COUNTY, CALIFORNIA it LODES ATLAS ASBESTOS CO. CLAIM NAME .ORIGINAL RECORDED DATE BOOK CMC 5 CMC 6 CMC 7 CMC 8 CMC 9 CMC 10 CMC 11 CMC 12 CMC 13 CMC 14 -* CMC 15 CMC 16 CMC 17 CMC 18 CMC 19 CMC 20 CMC 21 ; CMC 22 CMC 23 CMC 24 CMC .25 . CMC 27 CMC 2 J4 CMC 29 CLAYTON'S BONANZA 1 CLAYTON'S ' %%' 12-9-60, 12^9-60 12-9-60 12-9-60 12-9-60 10-20-60 10-20-60 10-20-60 10-10-460 10-10-60 10-16-60 10-10-60 jS 10-10-60 10-10-60 10-10-60 10-10-60 10-10-60 10-10-60 10-10-60 ; 10-10-60 10-10-60 10-20-60 10-20-60 11-10-60 4-22-59 BONANZA 2 MRC l . imc 2 . MRC 3, n n - ' 5-11-59 10-1-59 V' '.t?--.. 10-1-59 fV t . 10-1-59 '( .. hrc .%44 V.' -10-1-59 MRC ' ,'C 10,-1-59 . r - r-` .>.* ` ; ' " * v. ; ,WT, - =W' 4477 4477 4477 4477 4477 4455 4455 4455 4450 4450 4450 4450 4450 4450 4450 4450 4450 4450 4450 4450 4450 4455 4455 4464 4211 4219 4280 4280 4280 4280 4280 PAGE 157 159 161 163 165 * 247 245 443 585 584 ` 583 532 581 565 567 569 571 573 575 577 579 250 249 194 217 '602 119 120 121 122 123 AMENDED RECORDED DATE . BOOK t. nr- PAGE - K * T .4 u ,.Yf ,2 c y? .i "i * f? *3 10-10-60 10-10-60 10-10-60 7-16-63 12-13-60 12-13-60 4450 4450 4450 4883 4478 4478 \ 552.3 553' 5541 6562 125J l2ji 2.4 :':acs UCC 007638 iiy n ^! i . x 77 Li- o 0: -fl 0 U -'&' :U Sr* m rm kO!. y .-IX lyQS. w *r * ;t' "^SCHEDULE OF MINING PROPERTIES '' h;T- located in . FRESNO COUNTY, CALIFORNIA LODES Vi, ATLAS ASBESTOS CO. <>-/; .i* i ;i*i .. * CLAIM NAME ORIGINAL RECORDED DATE BOOK MRC MRC II If 6 7 II t* MRC 8 ff 19 *11 19 . 10-1-59 10-1-59 io-;i-59 . . , -* MRC MRC MRC MRC MRC 11 9 10 11 12 13 19 10-1-59 10-lr59 10-1459 11-3^59 11-3-59 ' .5 MRC 14 tf *f 11-3-59 . * MRC 15 11-3-59 MRC 16 11-3-59 MRC 17 MRC 18 11-3-59 11-3-59 MRC 19 11-3-59 :> MRC 20 MRC 21 t.11-3-59 . S* ,*11-3-59 MRC 22 11-3-59 MRC 23 MRC 24 1-3-59 "11-3-59 MRC 25 MRC 26 , '-'AH-*:-11*3-59 ' 11-3-59 . MRC'^7 A . .. 11-3-59 MRC728 ' 11-3-59 ^ MRC 29 *7. MRC 30 !, y ;mer:3l 11-3-S9 ' H-3-59 ;MRC/32 : 11-3-59 HRC33 MRC 34 11-3-59 X3-3-59 4280 4280 4280 4280 4280 4280 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 PAGE 124 125 126 127 128 129 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 AMENDED RECORDED DATE BOOK 12-14-60 12-14-60 3-7-62 7-16-63 10-10-60 3-7-62 7-16-63 10-10-60 4479 4479 4688 4883 4450 4688 4883 4450 PAC-E 346 347 ` 783 657 v 55 5 ' 784 658 556 .. 10-10-60 4450 10-10-60 4450 3-7-62 4688. 12-14-60 4479 3-7-62 4688 ' 12-14-60 4479 10-10-60 4450 10-10-60 4450 10-10-60 4450 y 5 57 ' 5 5 8/785 34 8 * 782 7 349 '/ 559 -T 560 561 ; .* . .f 12-14-60 10-10-60 10-10-60 10-10-60 4479 4450 445.0 4450 3 350 1 562 4 563/9 564 1 I UCC 007639 **-r p ;LiI n u ;1 U n i! iS 1' 1nt i wJ ni ! Li i u, u 0 r- n Li n !L ' J un n... S'' ATLAS ASBESTOS CO. SCHEOULE OF MINING PROPERTIES LOCATED IN FRESNO COUNTY, CALIFORNIA * LODES . ATLAS ASBESTOS CO. CLAIM NAME ORIGINAL RECORDED DATE 300K PAGE AME NDcD RECORDED DATE BOOK PAGE .. MRC 35 MRC 36 MRC 37 MRC 3 8 MRC 39 MRC 40 MRC 41 MRC 42 MRC 43 MRC 44 MRC 4 5 MRC 46 MRC 47 MRC 48 MRC 49 MRC 50 MRC 51 MRC 52 MRC 5 3 MRC 54 MRC 55 MRC 56 MRC 57 MRC 58 MRC 59 MRC 60 MRC 61 MRC 62 MRC 63 MRC 64 MRC 65 MRC 66 MRC 67 MRC 68 11-3-59 11-13-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-3-59 11-20-59' 11-20-59 11-20-59 11-20-59 11-20-59 11-20-59 11-20-59 11-20-59 11-20-59 11-20-59 11-20-59 11-20-59 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4294 4301 4301 4301 4301 4301 4501 4301 4301 4301 4301 4301 4301 75 77 79 81 83 85 S7 89 91 93 95 9-7 99 101 103 105 137 109 11: 11 3 115 117 5? I 57 3 57 3 577 r. 531 53 5 35 537 539 541 543 12-13-60 4478 12-13-60 4478 127 123 12-14-60 12-13-60 i 2 -1 > - 0 r. 12-15-60 12-13-60 12-13-60 12-13-6C 12-13-60 17-13-60 12-13-60' 12 -- 13 -- CO 12-13-60 12-13-60 12-13-60 12-13-60 12--13--sc 17-13-60 12-15-60 1 ? -1 5 - 0 12-13-6. 12-13-6r. 12-13-6w 12-13-60 12-13-60 12-13-6C 12-13-60 4479 4473 -478 4478 4478 4478 4^73 4h7 3 4478 4478 4478 4478 4478 4478 4473 4478 4478 4478 44 78 44 7 8 1.4 78 44 7 3 4473 4478 4473 4478 351 229 130 131 232 133 134 135 136. 137 138 139 140 141 142 143 , 144 14 5 ' 146 147 148 149 150151 152 si 153 J 1 ' !1 2 .6 UCC 007640 -2$ - -- m* . ATLAS ASGLSTOS v-o. .SCHEDULE OF MINING PROPERTIES LOCATED IN FRESNO COUNTY, CALIFORNIA 4 n LODES LJ ATLAS ASBESTOS CO. Lj CLAIM ORIGINAL AMENDED U RECORDED RECORDED NAME DATE BOOK PAGE * DATE SOOK PAGE n MRC GO u NRC 70 MRC 71 n MRC 72 | j MRC 73 MRC 74 MRC 75 i; u MRC 76 MRC 77 MRC 78 MRC 79 MRC 80 11-20-59 11-20-59 12-9t59 12-9-59 12-9-59 12-9-59 12-9-59 12-9-59 12-9-59 12-9-59 12-9-59 12-9-59 4301 4301 4311 4311 '4311 4311 4311 4311 4311 4310 4510 4310 545 519 15 13 11 9 7 5 5 1 698 696 12-13-60 12-13-60 12-13-60 12-13-60 12-13-60 12-13-60 12-13-60 12-13-60 12-13-60 12-13-60 12-13-60 12-13-60 4478 4 47 8 4478 4478 4478 4473 4478 4478 4478 4478 4478 4473 154 155 156 157 158 159 160 161 162 163 154 165 Ai iUl> , SCHEDULE or MINING PROPERTIES LOCATED IN THE COUNTIES OF FRESNO AND SAN BEN 170, CALIFORNIA U 0 STATE LEASES STATE LEASE NO LEGAL DESCRIPTION un 1511.2 SOUTH 20 ACRES OF THE SO-ACRE PARCEL WEST OF LOTS 3 AND ^, AND THE NORTH 20 ACRES OF THE LO-ACRE PARCEL WEST OF LOT 9 ANO NORTH OF LOT 12 IN SEC. 36, T. 18 S., 0 R. 12 E., M. T>. B. & M., FRESNO CO., CONTAINING <0 ACRES MORE OR LESS. 1512.2 'ALL OF LOT <, THE SOUTH 1/2 OF LOT 3, THE NORTH 60 ACRES OF THE 80-ACRE PARCEL WEST OF LOTS 3 AND 4, AND THE EAST 1/2 OF THE 160-ACRE PARCEL WEST Or SAID 80-ACRE n PARCEL, CONTAINING 160 ACRES MORE OR LESS, IN .SEC. 36, T. 18 S., R. 12 E., M. D. B. S M., FRESNO AND SAN BENITO COUNTIES. 2787.2 LOTS 1 AND 2, NORTH 1/2 OF LOT 3, LOTS 5 AND 6 IN SEC. 36, T. 18 S., R. 12 E., M. D. B. M., FRESNO AND SAN TEN 170 COUNTIES, CONTAINING 136.02 ACRES MORE OR LESS. NEW IDRIA FEE LANGS LOTS 2, 7, 10, 12, AND 13 IN SECTION S, TOWNSHIP 18 SOUTH, RANGE 12 EAST, M. D. B. M., SAN BENITO COUNTY, CONTAINING D 200 ACRES MORE OR LESS. ; A- -j ' \] L.l D n Li JANUARY n lJ FEBRUARY MARCH nLJ APRIL MAY l-i JUNE n !I.J> JULY AUGUST Li SEPTEMBER n- J. OCTOBER i NOVEMBER d DECEMBER .( n Lj n rI :\ i.j n u ATLAS ASBESTOS CO. 1968 SALES BY PRODUCT (TONS) - AZ-20 1,680.00 1,402.50 1,242.50. 977'. 50 1,128.00 734.00 703.00 1,612.50 890.50 1,383.50 1,550.00 1.377.00 14,681.00 DRILLBESTOS 202.50 60.00 :-82.50 102.50 50.00 31.50 50.00 30.00 609.00 TOTAL 1,882.50 1,462.50 1,325.00 1,080.00 1,178.00 734.00 703.00 1,612.50 922.00 1,383.50 1,600.00 1,407.00 15,290.00 A' * *<** k* ^ > >. UCC 007643 j *> i ATLAS ASBESTOS CO. 1969 SALES BY PRODUCT CTONS) n r* L-4 u n r_ lJ r ~\i l! i n i.j ii <j i i-' IJ !i * JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEM8ER DECEMBER AZ-20 941,30 745.30 1,503.85 1,432.50 \ 1,363.75 582.70 608.00 1,187.53 981.25 455.00 718.00 380.00 10,899.18 DRILLBESTOS 50.00 * AZ-15 * 50.00 22.50 2.25 122.50 2.^5 TOTAL 991.3C 745.30 1,503.35 1,432.50 1,363.75 582.70 60S.00 1,187.53 1,033-5: 477.50 718.00 380.00 11,025.93 t C. ATLAS ASBESTOS 'CO. 1970 SALES BY PRODUCT ' (TONS) n L_J r--1* i r_ JANUARY FE8RUARY im< i MARCH \--j APRIL f-i ' i . MAY l-i JUNE Li JULY r AUGUST j SEPTEMBER : ! OCTOBER u f-- NOVEMBER J, DECEMBER ( n ij AZ-8 1.00 2.10 22.50 * 22.50 .40 22.35 70.85 # AZ-20 540.00 726.00 1/180.50 -i * ` , 870.00 815.00 525.00 500.25 812.63 1/447.00 1/447.ao 1/363.85 1.126.60 11/354.63 DRILLAZ-100 BESTOS 50.00 .50 30.00 50.00 1.20 ' 4.93 7.00 13.63 100.00 63.00 139.00 42 3.00 % TOTAL 541.00 728.10 1/230.50 892.50 845.00 575.00 . 500.75 835.13 1/447.00 1/549.40 1/431.78 1.285.95 11,862.11 rP rn. tu* rH u 1 UCC 007645 r > J'.: r r int "1 1j i"! u ph nL_ L*--1! r~i i -j r < Uni j r LJ ( n LJ n iJ . . JANUARY FE8RUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER ATLAS ASBESTOS CO. 297 1 C )tonsSALES BY PRODUCT t AZ-8 AZ-20 700.25 : 738.15 608.00 > ' 790.00 22.50 1,488.00 791.00 * 963.00 1,629.70 21.25 705.00 967.00 934.50 19,70 1.043.50 63.45 11,358.10 AZ-100 1.00 9.75 2.00 4.00 13.75 13.11 13.00 6.85 6.00 5.00 6.75 15.75 96.96 DRILL8EST0S 80.00 100.00 103.00 30.00 . 140.00 99.00 197.50 .170.00 139.00 30.00 150.00 1,238.50 TOTAL 781.25 847.90 610.00 897.00 1,554.25 944.11 1,075.00 1,834.05 902.25 1,111.00 971.25 1,228.95 12,757.01 * UCC 007646' i | . .* '1 4TV f| L-l rl JANUARY * >r '* AZ-8 , * * '% - l`J/2 SALES BY PRODUCT CTONS) S t AZ-20 1,136.00 AZ-25 AZ-100 15.50 --n FEBRUARY 1 MARCH n 'tJ APRIL MAY n ,i *-j JUNE JULY lJ AUGUST nLj SEPTEMBER OCTOBER \ NOVEMBER 4.85 11. 15 5.00 5.00 5.00 1,116.00 944.00 1/011.00 517.50 675.10.0 718.25 888.75 492.50 1/066.50 799.00 67.50 67.50 67.50 135.00 5.25 5.00 .10.00 5.25 9.25 15.00 r"* DECEMBER ;j 31.00 959.50 10/324.00 132.50 470.00 5.25 70.50 J ( u nt - DRILLBESTOS TOTAL 170.00 1,321.50 140.00 1,256.00 80.00 1,029.25 1,016.00 51.00 . 568.50 60.00 749.85 80.00 809-40 70. CO 1,036.50 80.00 649.25 90.00 1,244.00 30.00 . 969.00 130.00 981.00 1,227.25 11/876.50 H Li n UCC 007647 i :Ar 1! 4 >'i i 4A N<N O , in i/i >n i.' :j to l/l et co *" 0* I*A v-[~l 1 A CO 1 o 1* 04 t* ^ O K> o NO O A. CO <T DO 0 *A X M A, 0 A . H> cCMn y\ oj # *| |V T ! Ij Cl | o-! ui D <> 0 O' UI ir in r> O _J o A A 1- A 22 *> o a* til 0O < * J A* ,V\ O O <o co rc * o o o J WN o >d WN ft IN. A* CO N O NO CO 0 rw cmIN CN MN H to v c. t: #* UI c.\ O U .1 <t X C* A# aX in rs rt M OK <T 0+ r> rM r*(4 0 0 0 N AC <M CM CM * ^ r.! N 6 o! h r/i NO v\ lO 0 00 % *0 0 ^ p4 nN 00 P-4 LA r* ul *t r* #t V aW i' X- v> to ou 1- 1'- V. ll 1 > o-. tn H- < f.) D st/l O < A. 1 <1 fA S A 0> 00 (6fi0O Mn < o *-J ON tf' M <r * o c*i|tf MO^o tros to O hZo << tt tf> K kJ T >vL> O tOCO t cn UJ i> o to 10 O O' -T .X ON C4 Of O jr I-- to i>ll:~o frck>-.ruI<k-i VIVB iu a o r* K O c A NO sO -X X to l/> u> -J -- fM CO < -J _ n. PM. tt A Ui 13 40 0 ft *- VI 2 On 0N 0 LA A 4 A CDtD o rrv ft 0f* J O' AA to jlO eo lA ID CO o 3> o w Af R o* 2 ~4 2 001 % rt H 00 0 CO A X ft t Ot X O * O -- On 9* CO t '. % 0* 0 0 a* */ # hOZ to Ot* M?:l Mc 0 111 U(H u < 07N OHh55 Ml - O cCLt mDO y m N* l t K7 O *a *t N .* az zo H ao v. D <c X Oat h\A HAfSi a. v O'P rr ^ UCC 007648 O A* tr ** CM CM *r> 0 t rw jf tA |A 1HE. ABOVit COSTS DO NOT INCLUDE DEPRECIATION, DEPLETION OR EQUtPr-ENt RENTAL COSTS. ALSO EXCLUDED ARE VKMC HANACE"ENT WES AND FINANCIAL EXPENSES. -, */ o itUt XL. A CO .X *0 o o O' C4 A sA *trC *8 A ^s` i.j u I n r* i, ni ) ii <: :j L> s;1 if \ |-> ui ; 1i << L1 of rv Ml Oj ou! o2 cc. o tA! o J;i V*j c o K>- V U.` o 01 -- in H t T> w> C <o V- a. <] olco J fy is in o - < *. <r /> JUJ 2 OO -* o >* c* n Ui 1> v) in olo r p CHO* i* H V> tZ>i:j o~Z Ol t- *r>- &< orui III Ou. o A IA UJ J -- <- a*-J lIu- ADm. 2w *o -y r 13 w wm * rBQ w r- y\ % A ev p* r* p* - v in O <y M o> N rl T ** % J*% N * T #4 m tv KT m o CO v M V* M N 10 A S en o ,n -1 < > (3 2 - o z (A Z O >no A O UJ UI -J H Uh un Cl U < Oz z D OJJN * 1a ZdiH MOh 2 nr K u ; ro-l?' X fe Ovt nr - * M CL in k i >: -rf' .-Za *-; * ffjfF? *'. o r> -1 u (Ut/oi uaxuii o 2 p-- -J Ui I/I X UI X H O a < /> 2 O *-- l/> X u in _i > VI in iU/Ji iLi Q. X UJ UI > _* h < H in -- 2 -- 3: O < a z -v 2 UJ 13 UCC 007649 THE ASOVE COSTS DO NOT IN C LU D E D E P R E C IA T IO N , D E P L E T IO N OR EQ UIPM ENT R EN TAL COSTS OR EXTRAO RDINARY E X P E N S E S. A L S O , EXCLUDED ARE VKMC MANAGEMENT FEES AND F IN A N C IA L EXPENSES. or>* o kn n> mia V) ml o2 DO o2 O' UJ h aa vi cc <or> < K1 co r n Of < UJ > to o <O oUJ 22Q DOO ^ % H %^ OO H *4 Ha a 2O O2 cm V jin in O Ou 4l- in UJ 6 t> -- v> H <O D mO <o j a o P* n r*. m Jt K -3" rO o h c* r> % r** O' o O JT rs. J- m - ID ID M N m in in Oh 2 U ** O r- << CL VO o *n cr* . T o> tn h % UJ 2 o * U O KN n MU >1 a <0 vU)J i1n3 , cv in fsi -- o OJ cr> N o co \D in m a rr C % *- in U2J 2o a--rOuX>^I~h<oraU/ A V~JI t--u < mof -aaJ Ui 13 O h in H IIDD t|\*ij%n* oo M O' AX. m ui ur O l- < o' O *m O tj in m o -j 2 l* a*- c tj ufU-j \A* X!U iCnt U</J> -<J z * Z%uiuj v"*> o-. >uci i*; *< >- a. u IVv r, ij an UOI O< 1I.'. a UI O -UJ r* t. X .* <v ; --Ou E X C IW S O ASS UCC 007650 a lA i/1J > cv, ft :_>] inv>l ft. * *- ft. DOtu' O . in lo ~ n I- ft. O cn -- .$ rH -* (T> 7O ft Ufti i IV < UOJ lOu <Xz Dou 9o- offtt. O7 <s I:1 Ol s * u mn u J lJ n i ij n A*'T U6j) V> < C r> in < c oft 9<-JL O mH s; o < ft IA >- tOu O7O >I ft CD lu D V> V) .. * . h in Z 7 ov lij O CO cn eo N <U> ft h -* < D ft Crtu CO * o CO * o ** o ^4 C4 in ft O #( ' ., * 4 '* * * * 4 , * 0 1 * * * # 9V> n in uj *W -i *^ ! M ft *n ** J ft ft ft h kJ 3 H* m O A CM o ^4 n % N O N X*| * * ** ft o 0 ft ll 1 * _ j v ' . > -* .h.ftv: A .* J. r* r* %* K* J ,< > H07 in >r o O bl ~ w u t* ft OZN 7 iii M ft h 2? ft ft r> o X <r> >*, ft ft 4-4 0 m h in y\ in m UI 1/ o O2 ft -- ft o o 19 ft X > ns 3 ,o W - J gr s D CO w-i J cO CO J- ~j * IN m U> IT" cP-.n p> <r o %o X s -4 C4 pi <n kA eo O X _J o Vft. r ui X 41 4/ H3 oO 3 O o . u M 7 O hU D O O 'n It 4* G. n O KJ ft *- c*i J in ** UI a. X Ui 19 C*1 y l. -- Krt Y_ .j UJ LJ Cw V x L.4 o' l>t u 2> H v- O n c </ i* - < t/> M in Y MO > lA ft 4/1 - n >; Y. or ft w in fftt UI bi X ft IU mo :**OmMLt/r1iO J/ - ft l. 9- ft. UJ X UJ u. u> 1; Li -J Om< Y -- s u] t' T- Cl ;* o x -. -- uj ; >- < v u. >- c * O u; . : c. * ft a. o i f: n uo r ... t.J D ii *" ^X -J u> i` i i >1 -- O bi i * *: I- p* .* ;* n m o ou : o J -J 5. in ft J. - - > in z. O uj ui o ft ft ft lij * >Xo WM <n 9.` d ft CL D p- -J UJ 3 V X Cfx Hultei in iti J ft n fawiaa<i^&y&bn.*&* UCC 007651 g**. 11 ^itrrir/'fafkr T III o id ui ri r-t c\ O cr O < u H rH NO X NO C 14 2 r> n n ci N f** 1" l > 2o oo > o oo r* ** H H rth or n O Cl r--t c4 CL H f-t r-H ci m OLD> r>\* 0t1 t 01 Oa -S3