Development Plan

The “Monclova Coal Project” is the mine that DMG has targeted for our initial operation. Due to the quality of coal and its relative proximity to the Mexican rail lines and steel mills where we will sell the coal make this the ideal location.

A. Exploration

Initial geological studies have been completed indicating a coal seam averaging 6 meters in thickness underneath 7 meters of overburden (the earth that covers the coal seam). Further work was completed in October of 2004 to include rotary drilling to confirm previous geological work. Engineering of the mine and support facilities is currently underway with follow up work to be started by Chemrox Technologies.

(Click for Map of Coal Fields)

B. Construction

This projects appeal is not only in the vast deposit and prime location but also in its simplicity. The major rail line and highway 57 are located on the west of the property leading from the property south to the steel mills in Monclova and north to the power plants and U.S. boarder. Some minor development and infrastructure will need to be completed before operations can begin. This will include a mining office, maintenance facility, on site storage as well as a road into the property for the mining trucks to move on.

(Click for Map of Rail Lines)

C. Mining Plan

This coal-mining project is a strip-mining operation. The first step after the construction phase will be to dig our first pit call the box cut. The overburden (dirt covering the coal seam) will be removed with large Caterpillar dozers and front-end loaders to expose the coal layer approximately 7 meters below the surface. The overburden will be moved off the mining area by haul trucks until needed for reclamation.

Once enough of the overburden is stripped away the coal will be removed with a front-end loader fitted with a coal bucket and loaded into a hopper that feeds a crusher. The crusher will reduce the coal to minus 5” then a conveyor will transport the material into holding bins awaiting transport to the buyer.

The stripping operation can begin within 30 days of funding. With the equipment DMG will be using it is estimated that we can move 250,000 cubic meters of overburden per month allowing for coal production within 3o days from the start of stripping operations.