Full House, Pete Bajo and Fence

Full House, Pete Bajo and Fence – Evolving projects

SMD portaled into Carlin East in September 1993. This was our first contract with Newmont Mining and formed the basis of a relationship that has lasted through the years. Newmont crews finished mining in Carlin East in 2007. However, through further exploration and engineering, additional ore was found. This new area is known as Full House.

SMD drove an exploration drift in 2008 above the mineralization. After a successful drilling campaign, we developed and mined the Full House deposit. Full House lies about midway between the Leeville shaft and the Carlin East portal – it is about 10 – 12,000 feet to either one of them. With the end of Full House in site SMD crews advanced a connection drift between Full House and Pete Bajo. This drift replaced the Carlin East portal and access.

Newmont’s Pete open pit finished in late 2010. The pit could not extract all the mineralization economically creating an underground opportunity. In addition, more mineralization was located distally to the pit that could become potential underground reserves as well. SMD mobilized in the fourth quarter of 2010 to start this project. We completed two portals in miserable winter conditions and constructed a shop and wash pad / fuel / lube facility as well.

Development consists of 16’ x 16’ headings and the ore is primarily being mined with drift and fill, benching and open stoping techniques. Cemented rock fill is being utilized heavily at the Pete Bajo mine.

Currently, these two projects are transitioning to a new project known as Fence.