22.0 RECOMMENDATIONS
The author recommends that Palladon continue with its current activities and future plans to
produce 2.0 million tonnes of run-of-mine material for shipment to China. The author also
recommends a proposed budget of US$560,000 for core drilling in the Comstock/Mt. Lion and
Homestake iron deposits to upgrade the inferred iron resources to reserves. Additional
recommendations are as follows:
• A stockpile sampling and evaluation program should be initiated as soon as practical to
determine the potential economic viability of this material as production moves forward.
• The inferred iron resources should be upgraded by confirmatory drilling in the
Comstock/Mt. Lion and Homestake deposits. Additional exploration holes should also be
drilled in the Comstock/Mt Lion deposit to better define certain fault boundaries to better
define the deposit for mine planning. A minimum of 10 holes are recommended.
• Additional exploration on the Homestake deposit is recommended to better define the
deposit. This deposit appears to extend to deeper than the potential economic mining limit
established for the open pit. Should this drilling confirm significant quantities of iron
mineralization at depth, then an underground mining study may be warranted (Norwest,
2008).
• The exploration potential of the entire property should be evaluated at some point in the
future to determine if the area from the Rex iron deposit to the Comstock/Mt. Lion deposit
contains additional iron mineralization of potential economic value. Other iron
occurrences, shows and deposits in the district should be investigated and drilled where
appropriate.

The proposed budget of US$560,000 is detailed in the following table:
Table 22.1
Recommended Iron Mountain Drilling/Exploration Budget
Item Expense in US$
Geologic Mapping/ Samp.: 1 Geologist @ US$550/ day - 15 Days $5,500
Drill Supervision: 1 Geologist @ US$550/Day - 35 Days $19,250
Core Drilling: Direct Cost $70.00/foot -6,000 Feet $420,000
Assay Costs: 1,100 Drill Samples @ $25/Samp. + Ship $27,500
Airborne Magnetic Survey $82,000
Food, Lodging and Travel Expenses, Vehicle Costs $5,750
Total $560,000