With construction of the Alleco facility nearing completion, construction and installation of dredging operations will be the final plant modification required to reach our goals.  This installation will place into production a floating 14” dredge which will immediately eliminate most of the expense from our most costly maintenance area.  The substantial operating and maintenance expenses saved by this dredge operation are generated in the mineral extraction pit and the roadway maintained for transportation of raw product to the plant.
Reductions in cost are generated by elimination of daily road maintenance, elimination of our drag line operation, one hydraulic excavator, two rubber tired loaders, and three dump trucks.  This manpower and equipment is replaced by the 14” dredge which will pump 6,000 gallons of water each minute and will deliver nearly 500 tons of 9” minus aggregate feed to the plant every hour. In conjunction with the dredge and feed by pipe, we are installing classifying equipment which will increase sand production by nearly 300% and eliminate the need for screening ¼” minus product (which is the slowest and most expensive grade of product to screen). Long term savings over conventional excavating and haul operations justify the investment as the market grows in the Phoenix West Valley.  The dredge operation will expand our mineral reserve by allowing more efficient extraction of usable mineral and the ability to use otherwise wasted fines from our overburden in dry sub-base products.
	Finally, this dredging concept creates special possibilities related to the concept of developing a lake and recreation facilities.  The dredge and lake create co-development opportunities with the Town of Buckeye Community Park and the El Rio Project to re-water and restore natural habitat to the Gila River from Avondale to Buckeye.  All these areas of development will increase mineral reserve and add additional revenue sources to the Alleco operation.