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UPDATE: MONDAY, AUGUST 25, 2008

Work continues at Iron Mountain in anticipation of the resumption of ore mining and shipping of the first run-of mine ore. There are a number of contractors on the site at this time working in every aspect of mine development and preparation of the facilities.

RAILCARS AND TRACK

The first 17 temporary, or bridge, railcars are now at the site and sitting on the interchange tracks (Figure 1). When all are received, we will have between 400 and 500 cars in service.


Figure 1: Temporary Railcars on Interchange Tracks

Upgrade of the spur line to Iron Springs is still moving ahead rapidly with the expected completion date to be September 7, 2008. Contractors must first remove the old existing ties and then replace them with cement ties. The cement ties provide better stability on the curves than wooden ties. Once the ties and rail are in place, the ballast that was crushed on-site is dumped on the tracks (Figure 2) to ensure good stability and drainage. Only a few thousand feet of rail is being replaced, and only when we upgrade from 90 lb. rail to 133 lb. rail.


Figure 2: Ballast Over New Rail and Ties

Once ballast has been added, the track is then groomed in preparation for use. Figure 3 shows a groomed portion of the track with new cement ties on one of the most critical curves on the line. We have now installed approximately 1600 of the 5400 ties that will be replaced.


Figure 3: Groomed Track

THE MINE

We have started to remove (layback) the north pit highwall (Figure 4) for safety to assure we will not have any sloughing of material once mining begins below this area. This is purely for safety of the mining crew and to give us better access to the area that will be mined below. All material being removed is being trucked to build the crushing pad behind the primary crusher.


Figure 4: North Pit Highwill Layback

The drilling crew is currently mobilizing and getting set-up on site to begin blasting. Powder magazines are currently in the blasting shacks (Figure 5) at the site adjacent to the mining area.


Figure 5: Blasting Shacks

A pad was poured and the Prill (Anfo) storage silo has been installed at the site (Figure 6). The silo sits adjacent to the blasting shacks and will be the main blasting site for the crew. In the background of Figure 6 you can see the DM 50 Blast Hole Drill ready to move into position at the mine.


Figure 6: Prill Storage Silo with Drill in the Background

ELECTRICAL

All secondary power is now in-place and Rocky Mountain Power has now installed the meters on the main power lines. Power to the site should be activated this week.


Figure 7: Power Meters on Main Power Line

ANNUAL GENERAL MEETING

The AGM will be held at 9am on September 17, 2008 at the Palladon Ventures office in Salt Lake City, Utah. We would like to get some idea of those that are attending, so if you are planning to come please email us at info@palladonventires.com. In addition, if you are planning to meet at the mine site on September 18, 2008 please let us know so that we can arrange clearance at the site.

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