Document:

EXHIBIT 10.18

              MINERAL LEASE AND LANDFILL FACILITIES LEASE AGREEMENT
              -----------------------------------------------------

     THIS  MINERAL  LEASE  AND  LANDFILL  FACILITIES LEASE AGREEMENT is made and
entered into, to be effective as of the Closing (as hereinafter defined), by and
between  HANSON  NATURAL  RESOURCES  COMPANY,  a  Delaware  general  partnership
("HNRC"),  HOSPAH  COAL  COMPANY, a Delaware corporation ("Hospah") and SANTA FE
PACIFIC  MINERALS  CORPORATION,  a,  Delaware,  corporation  ("SFPMC").

                                    RECITALS:

     A.   HNRC owns or controls the Mesquite Properties (as hereinafter defined)
situated  in  Imperial  County,  California;

     B.   Pursuant  to  the  Asset  Exchange Agreement (as hereinafter defined),
HNRC  has  agreed  to  convey,  lease  or otherwise transfer to Hospah and SFPMC
certain  of  the  Mesquite  Properties  so  that Hospah and SFPMC may freely and
profitably  operate  the  Mesquite  Mine  (as  hereinafter  defined);

     C.   HNRC proposes to develop the Landfill Project (as hereinafter defined)
on  property  that  is  either  adjacent  to or currently encompassed within the
Mesquite  Properties.  The  Asset  Exchange  Agreement  provides that HNRC shall
retain  certain  of  the  Mesquite  Properties  for  this  purpose;

     D.   The Parties desire that Hospah and SFPMC be able freely and profitably
to  operate  the  Mesquite  Mine  and that HNRC be able freely and profitably to
develop  and  operate  the  Landfill  Project.  Accordingly, the Parties further
desires:  (i)  to  provide  for cooperation and coordination between the Parties
and  their  respective  operations; (ii) to avoid and minimize conflicts between
the  operations of the Parties; (iii) to ensure that the operations of one Party
do  not  result  in  the imposition of greater costs on the other Party; (iv) to
provide  for  the  joint  utilization  of  certain  properties,  facilities  and
resources;  (v) to benefit both of the Parties and society generally through the
efficient  and  thorough  use  of resources, including without limitation by the
possible  recycling  of  Overburden and Spent Ore generated by the Mesquite Mine
for  use  in  connection  with  the  Landfill  Project, and (vi) to optimize the
efficiency,  capabilities  and  profitability  of  the  Parties'  respective
operations.

     E.   The  Parties  desire  to enter into this Agreement in order to specify
their  respective  rights, title and interests in and to the Mesquite Properties
and  to  provide  for  cooperation between the Parties, the joint utilization of
certain facilities and resources and the optimization of the Parties' respective
operations,  all  on  the  terms  and  conditions  set  forth  herein.

     NOW,  THEREFORE, in consideration of the premises and mutual agreements set
forth  herein and in the Asset Exchange Agreement, the Parties agree as follows:

                                    ARTICLE I

<PAGE>
                                  DEFINED TERMS
                                  -------------

     1.1  Definitions.  As  used  in  this  Agreement, the following terms shall
          -----------
have  the  following  meanings:

     "Acceptance Notice" shall have the meaning set forth in Section 3.9 of this
      -----------------
Agreement.

     "Access  Road  Easement"  shall  mean the non-exclusive Easement to use the
      ----------------------
Present  Access  Road granted by HNRC unto SFPMC pursuant to Section 4.5 of this
Agreement.

     "Affiliate."  shall  mean,  with respect to any person or entity, any other
      ---------
person  or  entity,  directly or indirectly, through one or more intermediaries,
controlling,  controlled by, or under common control with such person or entity.
The  term  "control," as used in the immediately preceding sentence, means, with
respect  to any person or entity, the possession, directly or indirectly, of the
power  to  direct  or  cause  the direction of the management or policies of the
controlled  person  or  entity.

     "Agreement"  shall  mean  this  Mineral Lease and Landfill Facilities Lease
      ---------
Agreement,  together with all Exhibits appended hereto, which Exhibits are fully
incorporated  by  reference.

     "Alterations  and  Additions"  shall  mean  all modifications, alterations,
      ---------------------------
additions, improvements, supplements, repairs, renovations or changes to or upon
any  real  or  personal  property,  including  without  limitation  those  made
subsequent  to  Closing.

     "Applicable  Law"  shall  mean  all applicable laws, statutes, regulations,
      ---------------
decrees  or orders of governmental or judicial entities and applicable Licenses,
as  the  same  may  change  from  time  to  time.

     "Asset Exchange Agreement" shall mean that certain Asset Exchange Agreement
      ------------------------
dated  as  of  January  25,  1993,  as amended, between HNRC, Hospah, SFPMC, and
certain  Affiliates  of  Hospah  and  SFPMC.

     "BLM"  means  the  Bureau  of Land Management of the U.S. Department of the
      ---
Interior.

     "Clay"  shall mean all clay, clay minerals clay materials, and clay earths,
      ----
including  without  limitation  Fullers  Earth and Montmorillonite and all other
minerals,  materials and earths suitable for use as liners or cover due to their
characteristics  relating  to  impermeability.

     "Clay  Reserves"  shall  have the meaning set forth in Section 6.1 off this
      --------------
Agreement.

     "Closing"  shall  mean  the  closing  of  the  transfers and exchanges held
      -------
pursuant  to  the  Asset  Exchange Agreement, which is the same as the "Closing"
defined in and for purposes of the Asset Exchange Agreement.

     "Closing  Date"  shall  mean  the  date of the Closing held pursuant to the
      -------------
Asset  Exchange  Agreement.

                                        2
<PAGE>
     "Commercial  Landfill  Operations"  shall mean the disposal at the Landfill
      --------------------------------
Project  of waste in, commercial quantities and on a commercial basis, exclusive
of  site  preparation,  construction, testing, bulk testing and commissioning of
facilities.

     "Easements"  shall  mean easements, licenses, privileges, rights-of-way and
      ---------
rights  of  use.

     "Electrical  Tap  Facilities,"  shall have the meaning set forth in Section
      ---------------------------
3.8  of  this  Agreement.

     "Electrical  Service  Agreement" shall mean the agreement of the same name,
      ------------------------------
dated September 12, 1985, originally between IID and Gold Fields Operating Co. -
Mesquite,  as  amended.

     "Emergency  Vehicle"  shall  mean  the  emergency vehicle situated upon the
      ------------------
Mesquite Properties and owned by HNRC immediately prior to the Closing.

     "Environmental  Costs"  shall  mean  any  clean-up  costs,  remediation,
      --------------------
mitigation,  removal  or  other  response  costs (including, without limitation,
costs  to  come  into  compliance  with Environmental Laws), investigation costs
(including,  without  limitation, fees of consultants, counsel and other experts
in connection with any environmental investigation, testing, audits or studies),
losses,  liabilities,  obligations,  payments,  damages  (including,  without
limitation,, any, actual, punitive or consequential damages recovered by a third
party  under  any  statutory  or common law cause of action for personal injury,
proper  damage  or  damage to natural resources) fines, penalties, judgments and
amounts  paid  in settlement arising out of or relating to or resulting from any
Environmental  Matter.

     "Environmental  Laws"  shall mean any federal, state, local or foreign law,
      -------------------
rule  or  regulation  pertaining  to  Environmental  Matters, including, without
limitation,  the  Comprehensive  Environmental  Response,  Compensation,  and
Liability  Act,  ("CERCLA")  (42  U.S.C. Sec. 9601 et. seq.); the Surface Mining
Control  and  Reclamation  Act of 1977 ("SMCRA") (30 U.S.C. Sec. 1201 et. seq.);
the California Surface Mining and Reclamation Act of 1975 (9 Cal. Pub. Resources
Code  Sec.  2710 et. seq.); the Hazardous Material Transportation Act (49 U.S.C.
Sec.  1801  et.  seq.);  the Clean Water Act (33 U.S.C. Sec. 1251 et. seq.); the
Resource Conservation and Recovery Act (42 U.S.C. Sec. 6091 et. seq.); the Clean
Air  Act  (42  U.S.C.  Sec.  7401 et. seq.); the Toxic Substance Control Act (15
U.S.C.  Sec. 2601 et. seq.); the Federal Insecticide, Fungicide, and Rodenticide
Act (7 U.S.C. Sec. 136 et. seq.); the Federal Land Policy and Management Act (43
U.S.C.  Sec.  270 et. seq.); the Endangered Species Act (16 U.S.C. Sec. 1531 et.
seq.);  and  the  Migratory Bird Conservation, Act (6 U.S.C. Sec. 703 et. seq.);
all  as  amended;  and  any provisions of common law providing for any remedy or
right  or  recovery with respect to Environmental Matters, as these laws, rules,
regulations  and  provisions  may  change  from  time  to  time.

     "Environmental  Matter"  shall mean any matter arising out of, relating to,
      ---------------------
or  resulting  from  protection  of  the  environment or human safety or health,
including,  without limitation, matters relating to emissions, spills, leaching,
disposal,,  discharges,  disseminations, releases or threatened releases, of any
material  or  substance  whatsoever  into  the  air, surface water, groundwater,
drinking water supply, soil, land surface or subsurface, buildings or facilities
or  any  other  claims  under  any  Environmental  Law.

                                        3
<PAGE>
     "Escrow  Agent"  shall  have  the  meaning set forth in Section 2.2 of this
      -------------
Agreement.

     "Escrow  Instructions"  shall  have the meaning set forth in Section 2.2 of
      --------------------
this  Agreement.

     "Escrowed  Deed"  shall  have the meaning set forth in Section 3.10 of this
      --------------
Agreement.

     "Escrowed  Partial Release" shall have the meaning set forth in Section 2.2
      -------------------------
of  this  Agreement.

     "Exchange  Parcel"  shall have the meaning set forth in Section 2.2 of this
      ----------------
Agreement.

     "Fair  Market  Value,"  with  respect  to  any  particular  Selected Option
      -------------------
Property,  shall  mean  the  most  probable  price for which the Selected Option
Property  would  sell in a competitive and open market for uses other then those
associated  with  the  development  or  operation  of  a  landfill and under all
conditions  requisite  to  a  fair  sale,  the  buyer  and  seller,  each acting
prudently,  knowledgeably  and  assuming  that  the  price,  is  not affected by
coercion,  undue  stimulus,  urgency  or  extraordinary  need,  subject  to  the
following:  (i)  Fair  Market Value shall be determined with reference to sales,
closed  during  the  five  years  prior  to  the making of the determination, of
similar  properties  in  similar areas for uses other than those associated with
the  development  or  operation of a landfill; and (ii) the Fair Market Value of
the  Selected  Option  Property shall reflect any adjustment in value to a third
party purchaser that would likely result from HNRC's rights under this Agreement
to  make  use  of  the  Selected  Option  Property.

     "Fee  Property" shall mean real property, the underlying or paramount title
      -------------
to  which  is  held  by  parties other than the United States, including without
limitation,  patented  mining  and  patented  millsite  claims.

     "Financing  Liens" shall have the meaning set forth in Section 4.12 of this
      ----------------
Agreement.

     "Helipad"  shall  mean  the  existing  helicopter  landing and take-off pad
      -------
situated on patented millsite claim MILS 7 in the SE 1/4 of Section 8, T. 13 S.,
R.  19  E.,  S.B.M.,  Imperial  County,  California.

     "HNRC"  shall  mean  Hanson  Natural  Resources Company, a Delaware general
      ----
partnership.

     "HNRC  Indemnitees"  shall mean HNRC, its partners and Affiliates and their
      -----------------
respective officers, directors, employees, agents and representatives.

     "HNRC  Retained  Property" shall mean the Mesquite Properties, exclusive of
      ------------------------
the  SFPMC  Leased  Property and the Hospah Owned Property, as further described
and  defined  in  Section  2.1  of  this  Agreement.

     "Hospah"  shall  mean  Hospah  Coal  Company,  a Delaware corporation and a
      ------
wholly  owned subsidiary of Santa Fe Pacific Mining, Inc., a Kansas corporation.

     "Hospah  Assets"  shall mean that portion of the Hospah Owned Property that
      --------------
is conveyed, assigned, transferred or leased to Hospah at the Closing, including
without  limitation

                                        4
<PAGE>
Hospah  Owned  Property  in  which  an undivided interest is conveyed, assigned,
transferred  or  leased  to  Hospah  at  the  Closing.

     "Hospah  Indemnitees"  shall  mean  Hospah,  SFPMC  and  their  respective
      -------------------
Affiliates  and  their  respective  officers,  directors,  employees, agents and
representatives.

     "Hospah  Owned  Property" shall mean the portion of the Mesquite Properties
      -----------------------
the  ownership  of which HNRC shall convey or assign unto Hospah or SFPMC at the
Closing,  as  further  described  and  defined  in Section 3.1 of this Agreement

     "Hospah Property Lease" shall have the meaning set forth in Section 9.13 of
      ---------------------
this  Agreement.

     "Hospah's  First  Call on Clay" shall have the meaning set forth in Section
      -----------------------------
6.1  of  this  Agreement.

     "IID" shall mean the Imperial Irrigation District.
      ---

     "IID  -  WAPA  Agreements"  shall  mean  those two certain agreements dated
      ------------------------
September  10, 1985 between IID and WAPA entitled "Construction of Gold Mine Tap
Substation  on  the  Blythe-Knob  161-KV  Transmission  Line"  and  "Operation,
Maintenance,  Replacement  of  Facilities,"  respectively.

     "LID - WAPA Electrical Facilities" shall mean the transmission lines, power
      --------------------------------
tap  substation,  related  Easements  and  any  other  Improvements, facilities,
equipment  or  Licenses  owned,  used  or  held  for  use  by IID and/or WAPA in
connection  with the transmission, distribution or supply of electrical power to
or at the Mesquite Mine, exclusive of the Owned Power Facilities.

     "Improvements"  shall  mean  all  buildings,  improvements,  structures,
      ------------
fixtures,  dumps,  tailings, pits, Overburden or residue piles, gold mills, gold
processing  and  recovery plants, crushers, leach pads, solution ponds, solution
collection systems, slurry ponds, refuse areas, railroad loadouts, access roads,
Clay  Stockpiles,  Ore  or  Spent  Ore  Stockpiles,  water  wells, water and gas
pipelines,  powerplants, substations, powerlines, catchment dams, Surface Runoff
Drainage  Facilities,  Monitoring Facilities, fencing or any other structures or
facilities  that  are  located in, on or under, affixed to, or erected upon any,
real property that comprises, or is used or held for use in the operation of the
Mesquite  Mine  or  the  Landfill  Project  (as  the  case  may  be).

     "Incremental  Costs"  shall  mean  all  additional or incremental costs and
      ------------------
expenses  incurred  as  a  result  of  any  particular  activity or undertaking,
including  without limitation any Losses directly attributable thereto, less any
savings  realized  as  a  result  of  the  activity  or  undertaking.

     "Information"  shall  mean  all  documents,  data,  maps, reports, studies,
      -----------
records, correspondence, assays, files, royalty and production, computer records
or files or other information of any type or description whatsoever.

                                        5
<PAGE>
     "Landfill  EIS/EIR"  shall  mean  the  First  Screen  Check  Draft  of  the
      -----------------
Environmental  Impact  Statement/Environmental  Impact  Report  for the Landfill
Project  dated  October  1,  1992.

     "Landfill  Footprint"  shall  mean  the  area potentially to be encompassed
      -------------------
within the lined portion of the Landfill Project under the most land consumptive
scenario currently contemplated, as depicted on the map appended as Exhibit A of
this  Agreement,  together  with  immediately adjacent areas reasonably required
either:  (i)  for backslope to construct the lined facility, or (ii) for Surface
Runoff  Drainage  Facilities  (to  drain  precipitation  away  from  the  lined
facility)

     "Landfill  Project"  shall  mean  the  proposed  Mesquite Regional Landfill
      -----------------
situated  in Imperial County, California, as generally described in the Landfill
EIS/EIR  and  Exhibit  G  to  this  Agreement.

     "Leach Pad Certification" shall have the meaning set forth in Section 7.3 A
      -----------------------
of  this  Agreement.

     "Leased Exchange Property," shall have the meaning set forth in Section 2.2
      ------------------------
of  this  Agreement.

     "Licenses"  shall  mean  all  governmental or regulatory licenses, permits,
      --------
approvals,  authorizations,  consents,  planning  permissions,  instruments,
franchises and agreements (and applications for the foregoing).

     "Lien"  shall  mean  any  lien,  encumbrance,  security  interest,  pledge,
      ----
mortgage, adverse claim or hypothecation.

     "Losses"  shall  mean  amounts  incurred  with  respect  to claims, losses,
      ------
liabilities,  damages,  fines, penalties, costs and expenses (including, without
limitation,  reasonable  attorneys'  fees.).

     "Material  Adverse  Effect"  shall  mean  a  material adverse effect on the
      -------------------------
assets,  business,  financial condition or results of operations of the Mesquite
Mine  or  the  Landfill  Project  (as  the  case  may  be).

     "Mesquite  Mine"  shall  mean  the  operations upon the Mesquite Properties
      --------------
comprising  or  relating  to  the  exploration,  development,  mining,  storage,
treatment,  leaching,  beneficiation  and  shipment  of  gold.

     "Mesquite Properties" shall mean all right, title and interest held by HNRC
      -------------------
immediately  prior  to  the  Closing  in  or,  to all real or personal property,
tangible  or  intangible,  comprising,  used  or held for use in connection with
either  the  Mesquite  Mine  or  the  Landfill  Project.

     "Mine  Equipment  and Unaffixed Personal Property" shall mean all unaffixed
      ------------------------------------------------
personal  property  comprising,  used  or  held  for  use in connection with the
operation  of  the  Mesquite  Mine,  including without limitation all equipment,
machinery, vehicles, tools, parts, spare parts, furnishings, unaffixed pipes and
piping,  supplies,  chemicals,  reagents,  inventories,  computer

                                        6
<PAGE>
systems, computer software (to the extent transferable) and office supplies, but
excluding Ore, Spent Ore, Clay, Overburden and Stockpiles thereof.

     "Mineral  Lease  and  Purchase  Option Agreements" shall mean those certain
      ------------------------------------------------
agreements  between HNRC, as lessee and optionee, and certain, third parties, as
lessors and optionors, as further described in Exhibit B to this Agreement.

     "Monitoring  Facilities"  shall mean all monitoring stations, equipment and
      ----------------------
machinery  used  or  held  for  use  in  gathering  Information  relative to the
environment,  Environmental  Matters  or  the  condition  or  status  of  air,
precipitation,  surface  or, groundwater, climate, temperature, wildlife, plants
or  living  organisms.

     "Non-Essential  Property"  shall  mean  the  Mine  Equipment  and Unaffixed
      -----------------------
Personal  Property  and all Improvements situated upon the SFPMC Leased Property
or  the  Hospah  Owned  Property,  together  with  all Alterations and Additions
thereto,  but expressly excluding:  (i) all Ore, Spent Ore, Clay, Overburden and
Stockpiles  of  such  substances;  and  (ii)  the  Water  System,  the  IID-WAPA
Electrical Facilities, the Monitoring Facilities and the Surface Runoff Drainage
Facilities.

     "Option  Closing" shall have the meaning set forth in Section 3.7 E of this
      ---------------
Agreement.

     "Option  Property" shall mean the real and personal property subject to the
      ----------------
Purchase  option,  as  further  described  and  defined in Section 3.7 A of this
Agreement.

     "Option  Purchase  Price" shall have the meaning set forth in Section 3.7 D
      -----------------------
of  this  Agreement.

     "Option  Period"  shall have the meaning set forth in Section 3.7 B of this
      --------------
Agreement.

     "Ore"  shall  mean  naturally  occurring  materials containing gold in such
      ---
quantities and of such quality that Hospah or SFPMC reasonably believes that the
gold  is  or  may  become  economically  recoverable.

     "Overburden"  shall  mean  all  overburden,  soil,  topsoil,  earth,  rock,
      ----------
residue,  waste and other naturally occurring materials, exclusive only of Clay,
Ore  and  Spent  Ore.

     "Owned  Power  Facilities" shall mean all electrical distribution lines and
      ------------------------
related  Improvements, Easements and Licenses owned by HNRC prior to the Closing
and  encompassed  within  the  Mesquite  Properties.

     "Parties" shall mean HNRC, Hospah and SFPMC.
      -------

     "Party" shall mean HNRC Hospah, or SFPMC as the case may be.
      -----

     "Possible  Exchange  or Desert Tortoise Compensation Properties" shall mean
      --------------------------------------------------------------
all right, title and interest of HNRC or Gold Fields Mining Corporation in or to
real  property outside of the central and contiguous operating properties of the
Mesquite  Mine  that  are  owned or held for possible future use by HNRC either:
(i)  to  exchange  with  the  BLM  for  real  property  required  in

                                        7
<PAGE>
connection with the Landfill Project; or (ii) as lands to compensate or mitigate
for  impacts  caused  by  the  Landfill  Project  upon the desert tortoise.  The
Possible  Exchange  or  Desert  Tortoise  Compensation Properties shall include,
without  limitation, the real property described in Exhibit C to this Agreement.

     "Power  System"  shall  mean  the Owned Power Facilities and the IID - WAPA
      -------------
Electrical  Facilities,  collectively.

     "Present Access Road" shall mean the currently existing access road running
      -------------------
from  Highway  78  to the administration and plant area of the Mesquite Mine, as
depicted  on  the  map  appended  as  Exhibit  A  to  this  Agreement.

     "Primary  Term"  shall mean the primary term of the SFPMC Lease, as further
      -------------
described  and  defined  in  Section  4.2  of  this  Agreement.

     "Purchase  Option"  shall  mean  the option to purchase the Option Property
      ----------------
granted by Hospah and SFPMC unto HNRC pursuant to Section 3.7 of this Agreement.

     "Railroad  Spur  Property" shall mean the rail spur proposed to connect the
      ------------------------
Landfill Project to the main line of the Southern Pacific Railroad, as generally
depicted  on  Figure  2.1.1-2  of  the  Landfill  EIS/EIR, and all real property
reasonably  required in connection with the construction, operation, maintenance
or  repair  thereof.

     "Reclamation  and  Environmental  Responsibilities"  with  respect  to  a
      -------------------------------------------------
specified  property  or  asset, shall mean all responsibilities, obligations and
liabilities  for,  relating  to  or  arising  out  of:  (i)  reclamation  of the
specified  property  or  asset  in  accordance  with all applicable Licenses and
Applicable  Law;  (ii)  Environmental  Costs  relating  to or arising out of the
property  or  asset;  or  (iii)  Losses,  including  without  limitation  Losses
resulting  from Third Party Claims, that relate to or arise out of Environmental
Matters  pertaining  to  the  property  or  asset.

     "Remainder  Property"  shall  have the meaning set forth in Section 3.10 of
      -------------------
this  Agreement.

     "Retained  Exchange Parcel" shall have the meaning set forth in Section 2.2
      -------------------------
of  this  Agreement.

     "Reversion  Property"  shall  have the meaning set forth in Section 3.10 of
      -------------------
this  Agreement.

     "Sales  Offer,"  shall  have  the  meaning set forth in Section 3.9 of this
      ------------
Agreement.

     "Selected  Option  Property,"  shall  mean  the  Option Property which HNRC
      --------------------------
elects  to  purchase  pursuant  to the Purchase Option, as further described and
defined  in  Section  3.7  B  of  this  Agreement.

     "SFPMC"  shall  mean  Santa  Fe  Pacific  Minerals  Corporation,  Delaware
      -----
corporation.

                                        8
<PAGE>
     "SFPMC Assets" shall mean the SFPMC Leased Property and that portion of the
      ------------
Hospah Owned Property that is conveyed, assigned, transferred or leased to SFPMC
at  the  Closing, including without limitation Hospah Owned Property in which an
undivided  interest is conveyed, assigned, transferred or leased to SFPMC at the
Closing.

     "SFPMC  Lease" shall mean the lease of the SFPMC Leased Property granted by
      ------------
HNRC unto SFPMC pursuant to Article IV of this Agreement.

      "SFPMC  Lease  Term" shall mean the term of the SFPMC Lease, including the
       ------------------
Primary Term and any and all extensions thereto, as further described in Section
4.2  of  this  Agreement.

     "SFPMC  Leased  Property" shall mean the portion of the Mesquite Properties
      -----------------------
leased for mining and other mining related purposes by HNRC to SFPMC pursuant to
Article IV of this Agreement, as further described and defined in Section 4.1 of
this  Agreement.

     "Solution  Ponds"  shall  mean  the  two  solution  ponds existing upon the
      ---------------
Mesquite  Properties  as  of the Closing bate and situated in the S 1/2 S 1/2 of
Section  18 and the N 1/2 N 1/2 of Section 19, T. 13 S., 19 E., S.B.M., Imperial
County,  California.

     "Solution  Pipeline  Easement"  shall  mean  the  non-exclusive  Easement
      ----------------------------
appurtenant  to  the  SFPMC  Leased  Property  for  a  pipeline to carry process
solution  between  the  Solution  Ponds,  leach  pads  and associated processing
facilities,  which  Easement  shall  be  granted  by HNRC unto SFPMC pursuant to
Section  4.6  of  this  Agreement.

     "Spent  Ore"  shall mean the rock residue remaining after treatment of Ore,
      ----------
once  leaching  or  other  beneficiation  has  been discontinued or is no longer
economic, notwithstanding the fact that the rock may contain residual amounts of
gold,  together  with  all  materials  intermingled  or  associated  therewith.

     "Stockpiles"  shall  mean  any  and all stockpiles, dumps or man-made piles
      ----------
containing  a  specified  substance,  whether existing now or established in the
future.

     "Subdivision  Map  Act"  shall have the meaning set forth in Section 2.2 of
      ---------------------
this  Agreement.

     "Subject  Patent Property" shall have the meaning set forth in Section 3.10
      ------------------------
of  this  Agreement.

     "Surface  Runoff Drainage Facilities" shall mean all trenches, culverts, or
      -----------------------------------
similar  or related facilities for the diversion or control of surface runoff or
precipitation.

     "Surplus  Personal  Property" shall mean Non-Essential Property declared by
      ---------------------------
Hospah  and/or  SFPMC (i.e. by the Party or Parties that hold an interest in the
Non-Essential  Property  at  issue)  to  be  surplus to and not capable of being
effectively  used by Hospah and/or SFPMC (i.e. by the Party or Parties that hold
an  interest  in the Non-Essential Property at issue), either in connection with
the  Mesquite  Mine or in connection with other operations of Hospah or SFPMC at
other  locations.

                                        9
<PAGE>
     "Third  Party  Claim"  shall mean any claim, demand,, action, proceeding or
      -------------------
lawsuit brought by any person or entity other than the Parties.

     "Undertakings"  shall  have  the  meaning set forth in Section 9.13 of this
      ------------
Agreement

     "Unpatented  Claims"  shall mean unpatented lode or placer mining claims or
      ------------------
unpatented millsite claims, as the case may be.

     "WAPA" shall mean Western Area Power Authority.
      ----

     "Water  System"  shall  mean  the  MILS 261, 262, 265, 267 and 269 patented
      -------------
millsite  claims (Patent No. 04-88-0044), situated in portions of Section 33, T.
13  S.,  R. 19 E. and of Section 4, T. 14 S., R. 19 E., S.B.M., Imperial County,
California,  together  with  all  water  wells,  pumps  and  water  development,
production  and  transport  facilities situated on such patented millsite claims
and  all  water  rights,  water  wells, water pipelines, Easements, Licenses and
water  development,  production,  storage  and  transport facilities encompassed
within  the  Mesquite Properties and used or held for use in connection with the
development,  transport,  storage  or  use  of water at or to the Mesquite Mine,
exclusive  of the Water Tap Pipeline and other water facilities and water rights
developed,  constructed or acquired subsequent to the Closing Date in connection
with  the  Landfill  Project.

     "Water  Tap  Pipeline"  shall  have the meaning set forth in Section 3.4 of
      --------------------
this  Agreement.

                                   ARTICLE II

                             HNRC RETAINED PROPERTY

     2.1  Description of HNRC Retained Property.  Pursuant to the Asset Exchange
          -------------------------------------
Agreement,  and except as expressly set forth in this Agreement to the contrary,
at the Closing HNRC shall retain all of its right, title and interest whatsoever
in  and  to the Mesquite Properties, exclusive only of the Hospah Owned Property
and the SFPMC Leased Property (the "HNRC Retained Property").  The HNRC Retained
Property  includes,  but  is  not  limited  to,  all  of HNRC's right, title and
interest,  if  any,  in and to the following:  (i) the Unpatented Claims and Fee
Property  described  in  Exhibit D to this Agreement, and encompassed within the
area  depicted  and  labeled as "HNRC Retained Property" on the maps appended as
Exhibit  A  to this Agreement, together with all Improvements thereon (exclusive
only  of  Improvements  that  are  expressly  included  within  the Hospah Owned
Property,  as  described  and defined in Section 3.1 of this Agreement) (ii) the
Possible  Exchange or Desert Tortoise Compensation Properties, together with all
Improvements  thereon,  and  all minerals and mineral rights thereon, therein or
thereunder; and (iii) the Railroad Spur Property, together with all Improvements
thereon.  Except  as  expressly,  set  forth  in this Agreement to the contrary,
nothing  in this Agreement or in the Asset Exchange Agreement shall be construed
as  transferring  to  Hospah,  SFPMC  or  their  Affiliates  any right, title or
interest whatsoever in or to the HNRC Retained Property or the Landfill Project.
Any exchange will be effected in such a manner as to avoid any interference with
or  interruption of Hospah or SFPMC in the mining and treatment of gold reserves
or  recovery  of  gold  associated  with  the  Mesquite  Mine.

                                       10
<PAGE>
     2.2  Treatment  and  Subdivision  of  U.S.  Patent  No.  04-87-0023.
          --------------------------------------------------------------

          A.   Background  and  Intention  of the Parties.  United States Patent
               ------------------------------------------
No.  04-87-0023,  issued January 3, 1987, covers approximately 1,440.24 acres of
land  as  depicted  on  the  map  appended as Exhibit A-3 to this Agreement (the
"Exchange  Parcel").  A  portion  of the Exchange Parcel (the "Retained Exchange
Property") is a part of the HNRC Retained Property and the following portions of
the  Exchange  Parcel  (collectively,  the "Leased Exchange Property") are SFPMC
Leased  Property:

               (i)  a portion of the N/2, SE/4 of Section 7 and the NW/4 NW/4 of
Section  8  (covering the southernmost extension of the "220 Dump" and the 11220
Extension  Dump");

               (ii)  a  portion  of  the  W/2  of  Section,  17  (covering  the
southwestern  portion  of  the  most  westerly  leach  pad);  and

               (iii)  a  portion of the S/2 S/2 of Section 18 and the N/2 N/2 of
Section  19  (covering  the  solution  ponds).

All of the Leased Exchange Property is located in T-13-S, R-19-E, SBBM, Imperial
County, California, and is depicted and established as shown on the map appended
as  Exhibit  A-3 to this Agreement.  Because the SFPMC Lease is a mineral lease,
the  Parties  have  concluded that the inclusion of the Leased Exchange Property
within  the  SFPMC Lease does not require that the Exchange Parcel be subdivided
under  the  California  Subdivision Map Act (California Government Code Sec.Sec.
66410-66499.37)  and  ordinances of Imperial County, California enacted pursuant
thereto  (collectively  the  "Subdivision Map Act").  However, in the event that
SFPMC  reasonably  determines  that  events  subsequent  to  the Closing make it
necessary  to  subdivide the Exchange Parcel into the Retained Exchange Property
and  the  Leased  Exchange  Property, SFPMC may require, by notice to HNRC, that
HNRC  take  actions  described  in  Section  2.2.C.

          B.   Boundary  Line  Survey.  The  boundary  line between the Retained
               ----------------------
Exchange  Property  and the Leased Exchange Property is depicted and established
only  on the Map appended as Exhibits A and A-3 to this Agreement.  If, pursuant
to  Section 2.2.A, SFPMC elects to require HNRC to take the actions described in
Section  2.2.C,  and HNRC elects to attempt to subdivide the Exchange Parcel (or
to  seek  a  waiver  or exemption from compliance with the Subdivision Map Act),
then  the  parties  agree to engage an independent and disinterested third party
contractor  who  is  duly  qualified,  competent  and  experienced  in surveying
property  of  this  kind,  to  conduct  and  prepare  a survey to be used in the
subdivision  of  the  Exchange  Parcel or the obtaining of a waiver or exemption
from  compliance with the Subdivision Map Act.  All instructions to the surveyor
shall  be in writing and shall be executed by each of the Parties.  The surveyor
shall  provide to each of the Parties a copy of all preliminary and final drafts
of  the survey.  The costs and expenses of such survey shall be paid one-half by
HNRC  and  one-half  by  SFPMC.

          C.   Division  of  the  Exchange  Parcel Grant of Option.  Upon notice
               ---------------------------------------------------
from SFPMC under the circumstances and as provided in Section 2.2.A, HNRC shall,
at its sole cost and expense, undertake one or more of the, following courses of
action  described  below  in  this

                                       11
<PAGE>
Section 2.2.C.  HNRC, in its sole discretion, shall elect which (or both) of the
following  courses  of  action  to  undertake  and  shall  notify  SFPMC of such
election:

               (i)  take  such  action as may be required (x) to comply with the
requirements  of  the  Subdivision  Map  Act,  including  without limitation the
preparation,  submission,  and approval of parcel maps or (y) to obtain from the
pertinent  government  agency  or  agencies  a  valid  waiver  or exemption from
compliance  with  the  Subdivision  Map  Act,  in each case in order to properly
describe  and  lease  to SFPMC the Leased Exchange Property.  HNRC shall, at its
sole  cost  and  expense,  take  such  actions as it deems necessary, prudent or
advisable, in its sole discretion, to satisfy either of the conditions set forth
in  clauses  (x) or (y) of the preceding sentence.  HNRC shall have the right to
take  such  actions in SFPMC's name, as SFPMC's agent or in SFPMC's stead.  Upon
request  and  subject  to  the  direction  of HNRC, SFPMC shall cooperate in all
reasonable  ways  and  take  all  such  reasonable  actions,  including  without
limitation  the  execution  and  filing  of additional documents, instruments or
maps,  as may be necessary or helpful to assist HNRC in such endeavors, provided
that  SFPMC  shall  not  be required to pay any out-of-pocket cost or expense in
connection , therewith.  Upon notice to SFPMC that HNRC has elected to seek such
a  subdivision  of  the  Exchange  Parcel or such a waiver or exemption from the
Subdivision  Map  Act,  the  Parties  shall  execute  an  instrument in form and
substance  reasonably  satisfactory  to  each of them amending this Agreement in
order  to  include  as  a part of the SFPMC Leased Property the Exchange Parcel.
(In  furtherance  of  this obligation, HNRC hereby grants and conveys to SFPMC a
conditional option to acquire such lease on the Exchange Parcel, to be exercised
only  under  the  circumstances and as provided herein.)  Contemporaneously with
the  execution  of such instrument, SFPMC shall execute and place in escrow with
Commerce  Escrow Company or such other escrow agent as may be acceptable to HNRC
and  SFPMC  ("Escrow  Agent") a partial release in form and substance reasonably
satisfactory to HNRC (the "Escrowed Partial Release") releasing and surrendering
the  Retained Exchange Property from the SFPMC Lease.  Upon accomplishing either
of the conditions set forth in clauses (x) or (y) of this Section 2.2.C. (i) and
pursuant  to  the  terms  of escrow instructions given to the Escrow Agent (such
instructions,  to  be  substantially  in  the form attached as Exhibit I to this
Agreement,  herein  called  the  "Escrow  Instructions"),  the  Escrowed Partial
Release  shall  be delivered to HNRC.  Upon such delivery, the Retained Exchange
Property  shall  become  a  part  of  the  HNRC Retained Property and the Leased
Exchange  Property shall remain part of the SFPMC Leased Property, provided that
SFPMC  shall not be relieved of or released from its obligations or liabilities,
if  any,  with respect to the Retained Exchange Property that shall have accrued
during  the  term  of  SFPMC's  lease  thereof;  or

               (ii)  grant  to  SFPMC  a  non-exclusive  Easement,  on terms and
conditions reasonably satisfactory to SFPMC, permitting SFPMC to occupy, use and
possess the Leased Exchange Property as contemplated by the Parties as though it
were,  from  the  Closing  through the date of termination of the SFPMC Lease, a
portion  of  the  SFPMC  Lease.  Such Easement shall be expressly subject to the
same  rights  and  obligations of the Parties as apply under this Agreement with
respect  to  SFPMC  Leased  Property.  In  furtherance  of this obligation, HNRC
hereby  grants and conveys to SFPMC a conditional option to acquire the Easement
contemplated by this Section 2.2.C.(ii), to be exercised under the circumstances
and  as  provided  herein.

                                       12
<PAGE>
          D.   Rights  and  Obligations  the  Parties  Pending  Release  of  the
               -----------------------------------------------------------------
Retained  Exchange Property.  Notwithstanding any provision of this Agreement to
---------------------------
the  contrary,  SFPMC  shall  not  pledge,  mortgage,  hypothecate  or otherwise
encumber, its interest in the Retained Exchange Property, except as permitted by
and subject to the limitations of Section 4.12 of this Agreement.

          E.   Further  Assurances.  Upon  request  by  any  Party,  the Parties
               -------------------
covenant,  at  any time and from time to time, to cooperate reasonably with each
other  and  take  all  such  further  actions,  including without limitation the
execution  and  filing  of,  additional  instruments  or  documents,  as  may be
reasonably  necessary  to  carry  out  the  intent,  purposes  and  terms of the
provisions  of  this  Section  2.2.

          F.   Use  by  SFPMC  of  the  Retained Exchange Property.  The Parties
               ---------------------------------------------------
agree  that  upon  HNRC's  exercise  of its election under Section 2.2.C.(i) the
Exchange  Parcel  shall  become  SFPMC Leased Property subject to Article IV and
Section  2.2.C(i) of this Agreement; provided, however, that SFPMC shall have no
rights  to occupy or use the Retained Exchange Property in addition to or beyond
such  rights that SFPMC holds under this Agreement with respect to HNRC Retained
Property; and provided further that HNRC shall have the same rights to occupy or
use  the  Retained  Exchange  Property as it holds with respect to HNRC Retained
Property.  In particular, and without limitation, the Exchange Parcel is subject
to  the  restrictions  set  forth  in  Section  4.19.  SFPMC further agrees with
respect  to the Retained Exchange Property that it will, cooperate in good faith
with  HNRC in the development of the Landfill Project (provided that SFPMC shall
not  be  obligated  to  bear  any  out-of-pocket  cost  or expense in connection
therewith)  and  that  it  will  not interfere with HNRC's activities on or with
respect  to  the  Retained  Exchange  Property.

          G.   Other  Rights  of  HNRC  to Terminate Lease on Some or All of the
               -----------------------------------------------------------------
Exchange  Parcel.  In  addition  to HNRC's right to receive the Escrowed Partial
----------------
Release  as  provided  in  Section  2.2.C.(i)  and  HNRC's rights to require the
surrender  by  SFPMC  of  a  portion of the SFPMC Leased Property as provided in
Section  4.13.B.,  HNRC  shall  have the additional right, at any time after the
date  which  is  20 years after the Closing and from time to time, upon not less
than  90  days prior written notice to SFPMC, to terminate the SFPMC Lease as to
any portion of the Exchange Parcel and to terminate any Easement granted by HNRC
pursuant  to  Section  2.2.C(ii)  with  respect to the Leased Exchange Property;
provided  that  HNRC  has  made arrangements reasonably satisfactory to SFPMC to
ensure  that  the  operations  of the Mesquite Mine are not materially adversely
affected by such termination including the construction.(at HNRC's sole cost and
expense and on property then included within the SFPMC Leased Property or Hospah
Owned  Property) of any replacement or relocated Improvements used in connection
with  the, Mesquite Mine (including, without limitation, the Solution Ponds, the
solution  pipeline  and  related  facilities  and the Water System) which may be
required  by  the  termination  of  the SFPMC Lease or by the termination of the
Easement  as  to  such  parcels.  Additionally,  upon  receipt  of  a sufficient
invoice,  HNRC  shall reimburse to SFPMC any Incremental Costs that SFPMC incurs
as  a  result  of  the  termination.

                                       13
<PAGE>
                                   ARTICLE III

                              HOSPAH OWNED PROPERTY
                              ---------------------

     3.1  Description  of Hospah Owned Property.  Pursuant to the Asset Exchange
          -------------------------------------
Agreement, and subject to the rights and obligations of the Parties set forth in
this  Agreement,  at  the  Closing  HNRC has conveyed or assigned unto Hospah or
SFPMC  all  of  HNRC's  right,  title  and  interest  in and to the Hospah Owned
Property.  As  used herein, the "Hospah Owned Property" shall mean the following
real  and  personal  property:

               (i)  the  Unpatented Claims and Fee Property described in Exhibit
E  to  this  Agreement,  and encompassed within the area depicted and labeled as
"Hospah  Owned Property" on the maps appended as Exhibit A and Exhibit A to this
Agreement,  together  with all Improvements thereon and all minerals and mineral
rights  thereon,  therein  or  thereunder;

               (ii)  the  Mineral  Lease  and  Purchase  Option  Agreements;

               (iii)  the  Mine  Equipment  and  Unaffixed  Personal  Property;

               (iv)  the  Emergency  Vehicle;

               (v)  all,  Ore,  Spent  Ore and other unaffixed materials present
upon  the  leach  pads  on  the  SFPMC  Leased  Property as of the Closing Date;

               (vi)  all  equipment,  pipes,  pipelines,  process  solution,
application  equipment  and related equipment and machinery used or held for use
in  connection  with  the  application,  circulation,  storage  and transport of
process  solution  at  the  Mesquite  Mine as of the Closing Date, regardless of
whether  situated  upon the HNRC Retained Property, the SFPMC Leased Property or
the  Hospah  Owned  Property,  and regardless of whether affixed or unaffixed to
real  property;

               (vii)  all processing equipment for recovery and refining of gold
together  with  all  process  solution, pregnant or otherwise, and regardless of
whether  or  not  contained within the process solution pipeline and application
circuit  or  the  Solution  Ponds,  situated  upon  any  portion of the Mesquite
Properties  as  of  the  Closing  Date;

               (viii)  the  Helipad,  subject in particular to the provisions of
Section  3.3  of  this  Agreement;

               (ix)  all  Monitoring  Facilities  situated upon the Hospah Owned
Property,  subject  in  particular  to  the  provisions  of  Section 8.2 of this
Agreement;

               (x)  all  Surface  Runoff  Drainage  Facilities situated upon the
Hospah  Owned Property, subject in particular to the provision of Section 8.3 of
this  Agreement;

               (xi)  all  mine  fencing situated upon the Hospah Owned Property,
subject in particular to the provision of Section 8.1 of this Agreement;

                                       14
<PAGE>
               (xii)  the  Water System, subject in particular to the provisions
of  Section  3.4  of  this  Agreement;

               (xiii)  the Owned Power System and all of HNRC's right, title and
interest  in  and to the IID-WAPA Electrical Facilities, the IID-WAPA Agreements
and the Electrical Service Agreement, subject in particular to the provisions of
Section  3.5  of  this  Agreement;

               (xiv)  all Licenses used or held for use or otherwise relating to
the  Mesquite  Mine, to the extent transferable and subject in particular to the
provisions  of  Section  9.10  of this Agreement and of Section 9.1 of the Asset
Exchange  Agreement;

               (xv)  all  Information  (or  copies thereof) in the possession or
under  the control of HNRC or its Affiliates as of the Closing Date that pertain
directly  or  indirectly  to the Mesquite Mine, the SFPMC Leased Property or the
Hospah  Owned  Property;

               (xvi) copies of all files and documents relating to customers and
vendors of the Mesquite Mine (including, without limitation, accounting records,
credit files, notes, guarantees and collateral relating thereto); and

               (xvii)  all  warranty, insurance and other rights of HNRC and its
Affiliates  against  a third party relating to any of the Hospah Owned Property,
to the extent that such Hospah Owned Property has not been restored, repaired or
replaced  prior  to  Closing.

The  deeds, bills of sale, assignments and other instruments of conveyance to be
delivered  at  the  Closing  shall  specify  which  portions of the Hospah Owned
Property  have  been  conveyed  or assigned to Hospah and which portions, of the
Hospah Owned Property have been conveyed or assigned to SFPMC.

     3.2  Assumption  of  Reclamation  and Environmental Responsibilities.  HNRC
          ---------------------------------------------------------------
has retained all Reclamation and Environmental Responsibilities, with respect to
the  Hospah  Owned  Property  and the Improvements thereon, that had accrued and
were  legally  required to be performed and completed prior to the Closing Date.
Hospah (as to the Hospah Assets) and SFPMC (as to the SFPMC Assets) shall and do
hereby  assume  all  other  accrued  and unaccrued Reclamation and Environmental
Responsibilities,  now  existing  or  arising in the future, with respect to the
Hospah  Owned  Property, the Improvements thereon, together with all Alterations
and  Additions.  Hospah  and/or  SFPMC shall post (at or prior to the Closing if
reasonably  possible,,  but in any event as soon as possible after the Closing),
all  reclamation bonds and other financial assurances and undertakings necessary
or  helpful  to  allow  and facilitate the release of, bonds and other financial
assurances_ and undertakings currently posted by HNRC or its Affiliates with the
BLM  or  other  governmental  agencies  relating  in any way to the operation or
reclamation  of  the  Mesquite  Mine  or  of  the  Hospah  Owned Property or the
Improvements  thereon  (excluding  bonds  or  portions  of  bonds that relate to
Reclamation and Environmental Responsibilities retained by HNRC hereunder).  The
Parties  shall  cooperate  including  without  limitation  by  the  preparation,
execution and filing of documents with appropriate government agencies, in order
to  expedite  the  release  of  all  such  existing  bonds  and  other financial
assurances  and  undertakings  of  HNRC.  All  such  releases of HNRC's existing

                                       15
<PAGE>
bonds  and  other, financial assurances and undertakings shall inure to the sole
benefit  and be for the sole account of HNRC.  The provisions and procedures and
rights  and obligations of the Parties set forth in this Section 3.2 relative to
the  release  of  bonds and other financial assurances and undertakings shall be
deemed  incorporated  by this reference, and without reiteration, into all other
provisions  of  this  Agreement  in  which  a  Party  assumes  Reclamation  and
Environmental  Responsibilities  with  respect  to  any  properties  or  assets
whatsoever.

     3.3  Use  of  Helipad.  Hospah and SFPMC (to the extent of their respective
          ----------------
interests)  hereby  grant  and  convey unto HNRC, its successors and assigns and
their respective agents and designees, a non-exclusive Easement in perpetuity to
use  the  Helipad, together with all Alterations and Additions thereto, provided
that  HNRC,  upon receipt of a sufficient invoice, shall reimburse to Hospah and
SFPMC  all  Incremental Costs incurred_ by such Parties as a result of such use,
and  provided  further that such use of the Helipad by HNRC shall not materially
interfere  with  or  cause  a Material Adverse Effect upon the operations of the
Mesquite Mine.  During the Option Period, Hospah and/or SFPMC shall maintain the
Helipad  in accordance with the provisions of applicable Licenses and Applicable
Law.  Notwithstanding  the  foregoing,  in  the  event  that  Hospah  and  SFPMC
discontinue and cease all operations at the Mesquite Mine (either permanently or
temporarily),  neither  Hospah  nor  SFPMC  shall  be  obligated to maintain the
Helipad  during  the period of such discontinuance or cessation.  In that event,
HNRC  shall  have  the right, but not i the obligation, at its sole election and
cost,  to maintain the Helipad during the period of discontinuance or cessation.

     3.4  Use  and  Operation  of  Water  System.
          --------------------------------------

          A.   Rights  of  HNRC  to Tap Into Water System.  Subject to the terms
               ------------------------------------------
and  conditions  set forth in this Section 3.4 and to the extent that Hospah and
SFPMC  have  the  right  and  power to do so, Hospah and SFPMC (to the extent of
their  respective interests) hereby grant unto HNRC, its successors and assigns,
the  right  to  take water from the Water System for any use associated with the
Landfill  Project,  provided,  subject  to  the availability of water, that such
taking  of  water by HNRC shall be subject to Hospah's and SFPMC's first call to
use  water  as required for Hospah's and/or SFPMC's operations.  HNRC shall have
the  right  (to  the  extent  that Hospah and SFPMC have the right and power, to
grant  it)  to  tap into the Water System at any point of HNRC's choosing and to
construct, operate, maintain, repair and remove a water pipeline (the "Water Tap
Pipeline")  to transport water from the Water System to the Landfill Project, or
to  a  water  storage  facility  owned,  controlled  or  otherwise used by HNRC,
provided that neither the point at which the Water Tap Pipeline connects too the
Water  System  nor  the selected route of the Water Tap Pipeline shall interfere
with  or  cause  a  Material  Adverse Effect upon the operations of the Mesquite
Mine.  Prior  to construction of the Water Tap Pipeline, the Parties shall agree
in  writing  upon  a  mutually  agreeable  route  ,(to the extent that the route
crosses  lands  encompassed  within  SFPMC  Leased  Property or the Hospah Owned
Property).  Upon  request by HNRC, Hospah and SFPMC shall execute and deliver to
HNRC  a  recordable instrument, in form and substance reasonably satisfactory to
HNRC,  evidencing  that  Hospah  and  SFPMC  (to  the extent of their respective
interests)  have  granted  and  conveyed  unto  HNRC a non-exclusive Easement in
perpetuity  to  construct,  operate,  maintain,  repair and remove the Water Tap
Pipeline.  Upon  request  and subject to the direction of HNRC, Hospah and SFPMC
shall  cooperate  to assist HNRC in obtaining Easements or Licenses from the BLM
or from other governmental or private entities or persons in connection with the
construction,  operation,

                                       16
<PAGE>
maintenance,  repair or removal of the Water Tap Pipeline, provided that neither
Hospah  nor SFPMC shall be obligated to bear or incur any out-of-pocket costs or
expenses in connection with such efforts.  HNRC shall bear and pay all costs and
expenses  associated  with  the  construction, operation, maintenance, repair or
removal  of the Water Tap Pipeline.  HNRC shall indemnify the Hospah Indemnitees
against  all  Losses  resulting  from  Third  Party Claims that arise out of the
construction,  operation,  maintenance,  repair  or  removal  of  the  Water Tap
Pipeline.

          B.   Operation  and Maintenance of the Water System.  During the SFPMC
               ----------------------------------------------
Lease  Term,  Hospah  and/or  SFPMC shall operate, maintain and repair the Water
System for the benefit of all of the Parties.  The Parties shall share the costs
and  expenses  of  operating,  maintaining  and  repairing  the  Water System in
proportion  to the volumes of water taken or used from the Water System by their
respective  operations  during  the six month period prior to the performance of
the  activity  at  issue.  Hospah  and/or  SFPMC  shall  pay  all such costs and
expenses  in  the first instance and shall provide to HNRC a written invoice for
HNRC's  proportionate  share  thereof.  The  invoice,  and  the  reimbursements
requested  pursuant  thereto,  shall  conform  to  the requirements set forth in
Section 9.5 of this Agreement.  Notwithstanding the foregoing, in the event that
Hospah  and  SFPMC  discontinue  and  cease  all operations at the Mesquite mine
(either permanently or temporarily), neither Hospah nor SFPMC shall be obligated
to  operate,  maintain  or  repair  the  Water  System during the period of such
discontinuance or cessation.  In that event, HNRC shall have the right,, but not
the  obligation,  at its sole election and cost, to operate, maintain and repair
the  Water  System  during  the period of discontinuance or cessation as well as
during the Option Period after termination of the SFPMC Lease.

          C.   Licenses.  Hospah and/or SFPMC shall be responsible to obtain and
               --------
maintain  all  Licenses  necessary or relating to the operation, maintenance and
repair  of  the  Water  System.  In  the event that HNRC elects to construct the
Water  Tap  Pipeline,  HNRC  shall  be  responsible  to  obtain and maintain all
Licenses  necessary  or relating to the construction, operation, maintenance and
repair  of,  the  Water  Tap  Pipeline.  Notwithstanding  the  foregoing, and in
accordance  with  the  provisions  of Section 9.3 of this Agreement, the Parties
shall cooperate in all reasonable ways with each other relative to the obtaining
and  maintaining  of  such  Licenses.

          D.   Alterations  and Additions.  all references to the "Water System"
               --------------------------
appearing  in  this  Section  3.4  shall  conclusively  be deemed to include all
Alterations  and  Additions  thereto.

     3.5  Power  System.
          -------------

          A.   Rights  of  HNRC  to Tap into Power System.  Subject to the terms
               ------------------------------------------
and  conditions  set forth in this Section 3.5 and to the extent that Hospah and
SFPMC  have  the  right  and  power to do so, Hospah and SFPMC (to the extent of
their  respective interests) hereby grant unto HNRC, its successors and assigns,
the right to tap into and take electrical power from the Power System for use in
connection with the Landfill Project, provided that such taking of power by HNRC
does  not  deprive  Hospah  or SFPMC of any electrical power required by them in
connection  with  the operation of the Mesquite Mine.  HNRC shall have the right
(to  the

                                       17
<PAGE>
extent  that  Hospah and SFPMC have the right and power to grant it) to tap into
the  Power  System  at  any  point of HNRC's choosing and to construct, operate,
maintain,  repair  and  remove  an  electrical  tap substation and/or electrical
distribution  lines  (collectively,  the  "Electrical  Tap  Facilities") to tap,
transmit  and  distribute electrical power from the Power System to the Landfill
Project,  provided that neither the point at which the Electrical Tap Facilities
connect  to  the  Power  System  nor  the  selected  route  of  any  associated
distribution  lines shall interfere with or cause a Material Adverse Effect upon
the  operations  of  the Mesquite Mine.  All electrical power taken or tapped by
HNRC from the Power System shall be separately and accurately metered.  Prior to
construction  of  the  Electrical  Tap  Facilities,  the Parties shall agree in,
writing  upon  a  mutually  agreeable  route and location for the Electrical Tap
Facilities  to  the  extent such route or location impacts Hospah Owned or SFPMC
Leased  Property.  Upon  request  by  HNRC,  Hospah  and SFPMC shall execute and
deliver  to  HNRC  a recordable instrument, evidencing that Hospah and SFPMC (to
the  extent of their respective interests) have granted and conveyed unto HNRC a
non-exclusive  Easement  to  construct, operate, maintain, repair and remove the
Electrical  Tap  Facilities.  HNRC  shall  bear  and  pay all costs and expenses
associated  with  the construction, operation, maintenance, repair or removal of
the  Electrical  Tap  Facilities.  HNRC  shall  indemnify the Hospah Indemnitees
against  all  Losses  resulting  from  Third  Party Claims that arise out of the
construction,  operation,  maintenance, repair, or removal of the Electrical Tap
Facilities.

          B.   Maintenance  Costs.  HNRC  shall  bear  and  pay  all  costs  and
               ------------------
expenses relating to the operation, maintenance and repair of the Electrical Tap
Facilities.  Hospah  and/or  SFPMC  shall  bear  and  pay all costs and expenses
associated  with  the  operation,  maintenance  and  repair  of  the Owned Power
Facilities.  The  Parties  shall pay and share all charges by LID and WAPA under
the  Electrical  Service  Agreement or under the IID-WAPA Agreements relating to
the  operation, maintenance and repair of the IID-WAPA Electrical Facilities, in
proportion to the amount of electricity taken from the Power System and consumed
by  their  respective  operations  during  the,,  six  month  period immediately
preceding  the  charge  at  issue.  Notwithstanding  the  foregoing, each of the
Parties  shall  bear  sole responsibility for all utility charges directly based
upon  the  quantity  of electricity consumed in their respective operations.  In
the  event  that  Hospah  and  SFPMC discontinue and cease all operations at the
Mesquite  Mine  (either  permanently  or  temporarily), neither Hospah nor SFPMC
shall  be  obligated  to  operate, maintain or repair the Owned Power Facilities
during  the  period  of  such  discontinuance or cessation.  In that event, HNRC
shall  have the right, but not the obligation, at its sole election and cost, to
operate,  maintain  and  repair  the owned Power Facilities during the period of
discontinuance  or  cessation.

          C.   Reimbursement  of  Original Capital Costs.  Pursuant to the terms
               -----------------------------------------
of  the  Electrical  Service  Agreement,  HNRC  is  entitled to reimbursement of
certain  capital  costs  in the event of the addition of a new user to the Power
System.  The  Parties  agree  to  waive such right of reimbursement against each
other.  The  Parties  shall take all such actions as may be reasonably necessary
to  waive such right of reimbursement against each other.  If such reimbursement
is  paid  notwithstanding  such a waiver, the Parties agree that the entirety of
any  reimbursement paid as a result of the addition of the Landfill Project as a
new  user  to  the  Power  System  shall  inure  to  the  benefit of and be paid
exclusively  to HNRC and that the entirety of any reimbursement paid as a result
of the addition of facilities associated with the Mesquite Mine as a new user to
the  Power  System  shall  inure  to  the  benefit of and be paid exclusively to

                                       18
<PAGE>
Hospah  and  SFPMC.  In  the event that a third party (unrelated to the Landfill
Project)  is  added as a new user to the Power System, Hospah and SFPMC shall be
entitled  too  any  resulting  reimbursement  of  original  capital  costs.

          D.   Transmission  of  Power  from the Landfill Project.  In the event
               --------------------------------------------------
that  electrical  power  is  generated  in  connection with the operation of the
Landfill  Project, at the sole election and direction of HNRC, the Parties shall
take  all  reasonably  practicable  actions  to  allow  the transmission of such
generated  power  over or through the Power System.  HNRC shall bear and pay all
Incremental  Costs  that  result  from  the transmission of such generated power
through  the  Power  System,  including without limitation any Incremental Costs
resulting from necessary modifications or repairs to the Power System.

          E.   Licenses.  For  so  long  as Hospah and/or SFPMC elect to operate
               --------
the  Mesquite  Mine,  Hospah and/or SFPMC shall obtain and maintain all Licenses
necessary  or  relating  to  the  operation, maintenance and repair of the Owned
Power Facilities.  In the event that HNRC elects to construct the Electrical Tap
Facilities  and  for  so  long  thereafter  as  HNRC  elects  to  operate  such
facilities,,  HNRC  shall obtain and maintain all Licenses necessary or relating
to  the  construction,  operation,  maintenance and repair of the Electrical Tap
Facilities  or  to the transmission of electrical power generated_ in connection
with  the  Landfill Project.  Each of the Parties shall be responsible for their
own  contractual,  and  regulatory relationships and dealings with IID, WAPA and
other  utility  companies  or  agencies.  Notwithstanding  the foregoing, and in
accordance  with  the  provisions  of Section 9.3 of this Agreement, the Parties
shall cooperate in all reasonable ways with each other relative to the obtaining
and  maintaining  of  such  Licenses.

          F.   Alterations and Additions.  All references in this Section 3.5 to
               -------------------------
the  "Power  System,"  "Owned  Power  Facilities,"  and  "IID-WAPA  Electrical
Facilities"  shall  conclusively  be  deemed  to  include  all  Alterations  and
Additions  thereto.

     3.6  Proration  of Property Taxes.  Real and personal property taxes levied
          ----------------------------
or  assessed upon or with respect to the Hospah Owned Property for 1993 shall be
prorated as of the Closing Date, with HNRC paying all such taxes attributable to
the  period  prior  to the Closing Date and Hospah (as to the Hospah Assets) and
SFPMC  (as to the SFPMC Assets) paying all such taxes attributable to the period
including  and  following  the  Closing  Date.

     3.7  HNRC's Purchase Option.
          ----------------------

          A.   Grant  of  Option  to  Purchase.  Subject  to  the  provisions of
               -------------------------------
Section 3.8 of this Agreement (governing the rights of Hospah or SFPMC to remove
Non-Essential  Personal  Property  for  use by Hospah, SFPMC or their respective
Affiliates  in  connection  with  operations  other  than the Mesquite Mine) and
subject  to the provisions of Section 3.9 of this Agreement (governing the right
of  Hospah and SFPMC to sell Surplus Personal Property to third parties), Hospah
(as  to  the  Hospah Assets) and SFPMC (as to the SFPMC Assets) hereby grant and
convey unto HNRC a conditional option to purchase (the "Purchase Option") all or
any  portion  of the real and personal property comprising or encompassed within
Hospah  Owned  Property  and  the,  Improvements  thereon  (including  without
limitation Improvements owned by Hospah or SFPMC but situated upon real property
encompassed  within  the  SFPMC  Leased  Property),

                                       19
<PAGE>
together  with  Alterations  and Additions thereto (the "Option Property"), such
option  to  be  exercised  only  under the circumstances and as provided herein.
With  respect  to Overburden, Clay and Spent Ore situated or to be situated upon
the  Hospah  owned  Property  and  Spent Ore situated or to be situated upon the
SFPMC  Leased Property, HNRC's Purchase Option is in addition to, rather than in
lieu  of  HNRC's  rights to remove such materials free of charge pursuant to the
provisions  of  Articles  V,  VI  and  VII  of  this  Agreement.

          B.   Exercise.  The  Purchase  Option may be exercised by HNRC, at its
               --------
sole  and absolute discretion, at any time during the Option Period.  As used in
this  Agreement,  the  "Option Period" means a four month period commencing upon
the  termination,  expiration  or  surrender of the SFPMC Lease in its entirety.
HNRC  shall exercise the Purchase Option (if it elects, in its sole and absolute
discretion,  to  do  so)  by  providing written notice of exercise to Hospah and
SFPMC  within  the  Option Period.  The notice shall specify the Option Property
with  respect  to  which  HNRC  has elected to exercise the Purchase Option (the
"Selected  Option Property").  In the event that the Selected Option Property is
a  parcel  or  parcels  of  real  property,  neither  Hospah  nor SFPMC shall be
obligated  to  convey  such  property  unless  such  conveyance  may  be made in
compliance  with  (or  pursuant to a waiver from) the Subdivision Map Act.  HNRC
may,  at  its  election,  take  such measures as are necessary to sub-divide the
option  Property  so  that  the  Selected  Option  Property  may  be conveyed in
compliance with the Subdivision Map Act or may seek a waiver of such compliance.
All  actions  taken in respect of such proposed sub-division or waiver, .whether
in  the  name  of  HNRC,  Hospah,  or  SFPMC shall be at the sole cost, risk and
expense  of HNRC.  Upon request and subject to the direction of HNRC, Hospah and
SFPMC  shall  cooperate  in  all  reasonable  ways  and take all such reasonable
actions,  including  without  limitation  the execution and filing of additional
documents, instruments or maps, as may be necessary or helpful to assist HNRC in
such  endeavors, provided that neither Hospah nor SFPMC shall be required to pay
any  out-of-pocket cost or expense in connection therewith.  HNRC shall have the
right  too exercise the Purchase Option with respect to any Improvement owned by
Hospah  or  SFPMC,  even if HNRC elects not to exercise the Purchase Option with
respect  to  the  real property upon which the Improvement at issue is situated.
In  that circumstance, HNRC shall have a reasonable period of time following the
Option  Closing  (not  to  exceed 12 months) in which to remove the Improvement.
HNRC  shall  have the right to enter upon the Hospah Owned Property for purposes
of  such  removal.

          C.   Due  Diligence.  During  the  Option  Period, HNRC and its agents
               --------------
shall  be  provided free and unrestricted access to the Option Property and all,
Information  in  the  possession  or under the control of Hospah, SFPMC or their
respective  Affiliates  which  relate  in  any  way  to the Option Property, for
purposes  of  conducting due diligence investigations.  HNRC shall indemnify the
Hospah Indemnitees against all Third Party Claims that arise as a result of such
due  diligence  investigations.

          D.   Purchase  Price.  In  the  event  that  HNRC timely exercises the
               ---------------
Purchase  Option,  the  purchase  price  for  the  Selected Option Property (the
"Option Purchase Price") shall be determined as set forth in this Section 3.7 D.
The  Option  Purchase  Price shall be equivalent to the Fair Market Value of the
Selected  Option Property Immediately following exercise by HNRC of the Purchase
Option, the Parties shall meet and in good faith endeavor to establish and agree
upon  the Fair Market Value of the Selected Option Property.  In the event that,
within  30 days following the provision to Hospah and/or SFPMC of HNRC's written
notice  exercising

                                       20
<PAGE>
the  Purchase  Option,  the Parties are unable to agree in writing upon the Fair
Market  Value of the Selected Option Property, then such Fair Market Value shall
be  determined  by  a  board  of  three  appraisers.  Hospah  and/or SFPMC shall
collectively  select  one  appraiser, HNRC shall select one appraiser and those,
two  appraisers  shall  select  a  third appraiser mutually agreeable to each of
them.  All  appraisers  shall  be independent, disinterested, duly qualified and
experienced  in  the  appraisal  of  property  similar  to  the  Selected Option
Property.  All  appraisers  shall  also  be  familiar with the prevailing market
conditions  in  the  rural  parts  of Imperial County, California.  An appraisal
approved  by  a majority of the three appraisers or, if no appraisal is approved
by  a  majority  of the appraisers, an appraisal equal to the average of the two
closest  appraisals,  shall conclusively establish the Fair Market Value, of the
Selected  Option Property (and the Option Purchase Price).  The appraisers shall
jointly  execute  and  provide  to  each of the Parties a written notice setting
forth  their  determination  of  Fair  Market  Value.  The determination of Fair
Market  Value  reached  by  the  appraisers pursuant to the foregoing procedures
shall  be  conclusive,  final  and binding upon the Parties.  HNRC shall pay the
fees  and  expenses of the appraiser selected by HNRC, Hospah and/or SFPMC shall
pay  the  fees and expenses of the appraiser selected by Hospah and/or SFPMC and
Hospah (together with SFPMC) shall pay 50% of the fees and expenses of the third
appraiser  and  HNRC  shall  pay  50%  of  the  fees  and  expenses of the third
appraiser.

          E.   Option  Closing.  The  closing  of  the  purchase  by HNRC of the
               ---------------
Selected  Option  Property  (the  "Option Closing") shall be held within 30 days
after  determination  of  the  Option  Purchase  Price  in  accordance  with the
procedures  set  forth  in  Section  3.7  D  of  this Agreement, subject to such
extensions  as  may  be necessary to comply with requirements of the Subdivision
Map  Act.  The  specific  time, date and place of the option Closing shall be as
reasonably  agreed  upon  by  the Parties.  At the Option Closing, the following
shall  occur:

               (i)  HNRC  shall pay to Hospah and/or SFPMC (i.e. to the Party or
Parties  that  hold  an  interest  in  the  Selected Option Property) the Option
Purchase  Price,  net of any credits allowed under this Agreement.  Such payment
shall  be  made  in cash, by certified or cashier's check or by wire transfer of
immediately  available  funds,  as  elected  by  HNRC  in  its  sole discretion;

               (ii)  Hospah and/or SFPMC (i.e. to the Party or Parties that hold
an interest in the Selected Option Property) shall execute and deliver unto HNRC
deeds,  assignments  and  bills  of  sale, as appropriate, in form and substance
reasonably  satisfactory  to  HNRC,  conveying and assigning the Selected Option
Property  unto  HNRC;  and

               (iii) Hospah and/or SFPMC (i.e. to the Party or Parties that hold
an  interest  in  the  Selected  Option  Property)  shall  deliver  to  HNRC all
Information  in  the  possession  or under the control of Hospah, SFPMC or their
respective  Affiliates that is reasonably necessary to the permitting, operation
or ownership of the Landfill Project.  Hospah and/or SFPMC (i.e. to the Party or
Parties that hold an interest in the Selected Option Property) shall execute and
deliver  unto  HNRC  a  bill of sale conveying and selling such Information unto
HNRC.

Real  and personal property taxes levied or assessed upon or with respect to the
Selected Option Property shall be prorated as of the date of the Option, Closing
and  Hospah  and/or  SFPMC  (i.e.

                                       21
<PAGE>
to  the  Party or Parties that hold an interest in the Selected Option Property)
shall be solely responsible for the portion of such unpaid taxes attributable to
the period prior to that date.  Prior to the Option Closing, Hospah and/or SFPMC
(i.e.  to  the  Party  or  Parties  that hold an interest in the Selected Option
Property)  shall  take  all  actions  necessary  to fully pay-off, discharge and
remove  all  Liens  encumbering the Selected Option Property.  In the event that
Hospah  and/or  SFPMC (i.e. to the Party or Parties that hold an interest in the
Selected  Option  Property)  fails fully to discharge and remove any such Liens,
HNRC shall have the right, but not the obligation, to pay-off and discharge such
Liens itself, in whole or in part, and to deduct the amounts paid by it from the
Option  Purchase Price.  HNRC shall also have the right, but not the obligation,
to  assume the obligations under any such Liens and to credit against the Option
Purchase  Price  an amount equal to the amount necessary to fully discharge such
Liens.  Notwithstanding  the  foregoing,  the  Parties understand and agree that
neither Hospah nor SFPMC shall make, at the Option Closing or in the instruments
to  be  delivered  at  the  option  Closing or otherwise, any representations or
warranties  whatsoever,  express or implied, with respect to its ownership of or
title  to  the  Selected  Option  Property.  Furthermore, all conveyances at the
Option  Closing shall be subject to the disclaimers set forth in Section 9.10 of
this  Agreement.

          F.   Covenants  of Further Cooperation.  From  and  after  the  Option
               ---------------------------------
Closing, each of the Parties covenants that, upon request by the other Party, it
shall do all such further things, including without limitation the execution and
recordation  of  further  or  additional  instruments  or  documents,  as may be
necessary  or  helpful  to effect the intent of the Parties as set forth in this
Agreement.

          G.   Reclamation  and Environmental Responsibilities.  Notwithstanding
               -----------------------------------------------
any provision of this Agreement to the contrary, neither exercise by HNRC of the
Purchase  Option  nor  the occurrence and completion of the option Closing shall
relieve  or  release  Hospah  or  SFPMC  from  any Reclamation and Environmental
Responsibilities  with  respect  to the Selected Option Property that shall have
accrued  prior  to  the  Option  Closing,  including  without limitation accrued
obligations  required  to  be performed subsequent to the(,Option Closing.  HNRC
shall  assume all Reclamation and Environmental Responsibilities with respect to
the  Selected  Option  Property  that  accrue  subsequent to the Option Closing.

          H.   Obligations  of Hospah and SFPMC Prior to the Option Closing.  At
               ------------------------------------------------------------
all  times  during the Option Period, and, if HNRC timely exercises the Purchase
Option,  at,  all  times  prior  to the Option Closing, Hospah (as to the Hospah
Assets),  and  SFPMC (as to the SFPMC Assets), shall perform and comply with the
following  duties  and  obligations:

               (i)  In the event that Hospah and/or SFPMC desires to abandon any
of the Option Property, Hospah and/or SFPMC (i.e. the Party or Parties that hold
an  interest  in  the  Option Property at issue) shall provide HNRC with written
notice  of its intentions no less than 90 days prior to abandonment.  The notice
shall identify with specificity the Option Property to be abandoned.  HNRC shall
have the right, by providing written notice thereof to Hospah and/or SFPMC (i.e.
to  the  Party or Parties that hold an interest in the Option Property at issue)
within the 90 day period described above, to elect to receive from Hospah and/or
SFPMC  (i.e.  from  the  Party  or  Parties  that hold an interest in the Option
Property  at  issue)  at  no  charge,  an assignment or conveyance of the Option
Property  at  issue.  Within  ten  days  following  the

                                       22
<PAGE>
provision  of  such  written notice to Hospah and/or SFPMC (i.e. to the Party or
Parties  that  hold  an  interest in the Option Property at issue) Hospah and/or
SFPMC (i.e. the Party or Parties that hold an interest in the option Property at
issue) shall execute and deliver to HNRC a deed, assignment, or bill of sale, as
appropriate,  in  form  and substance reasonably satisfactory to HNRC, conveying
the  Option  Property  at  issue  unto  HNRC;  and

               (ii)  Subject  to  the  rights  of Hospah and/or SFPMC to abandon
Option  Property  in  accordance with the provisions of Section 3.7 H (i) above,
Hospah  (as  to  the  Hospah  Assets)  and  SFPMC (as to the SFPMC Assets) shall
protect,  maintain  and  keep  in  good  standing all real and personal property
subject  to the Purchase Option.  Hospah (as to the Hospah Assets) and SFPMC (as
to  the SFPMC Assets) shall timely, fully and properly make all filings, perform
all  assessment work and pay all fees, rentals and other payments required under
Applicable  Law  to maintain all Unpatented Claims encompassed within the Option
Property.  Hospah  (as  to the Hospah Assets) and SFPMC (as to the SFPMC Assets)
shall timely and fully perform all obligations and make all payments required in
order to keep the Mineral Lease and Purchase Option Agreements in full force and
effect,  subject  to  such  amendments  and  modifications  thereto  as  may  be
acceptable  to  Hospah  (as  to  the  Hospah  Assets) and SFPMC (as to the SFPMC
Assets)  and  the counter-parties thereto.  Hospah (as to the Hospah Assets) and
SFPMC  (as  to  the  SFPMC  Assets) shall pay when due all taxes and assessments
levied  or assessed upon the Option Property and in no event shall Hospah (as to
the  Hospah  Assets) and SFPMC (as to the SFPMC Assets) allow any portion of the
Option  Property  to  be  sold  for  unpaid  taxes;  and

               (iii)  each  of Hospah and SFPMC shall take all actions necessary
to  remove  Liens  arising  by,  through,  or under it, upon the Selected Option
Property  prior  to the Option Closing.  Furthermore, HNRC shall have the right,
at  any  time  and  from  time to time, to pay off and discharge, in whole or in
part,  any Lien upon the option Property, in which case HNRC shall be subrogated
to  all  right,  title  and interests of the holder of such Lien.  Additionally,
HNRC  shall  have  the  right  to  credit  against the option Purchase Price any
amounts  expended by HNRC in connection with the discharge, in whole or in part,
of  such  Liens.

          I.   Restrictions  on  Transfers.  Except  as  expressly  allowed  and
               ---------------------------
subject  to  all  limitations  and  restrictions  set  forth  elsewhere  in this
Agreement,  any  conveyance, assignment or other transfer by Hospah or SFPMC, of
any  of  its  or  their  respective right, title or interest in or to the Option
Property  shall  be  expressly  subject to the Purchase Option and all of HNRC's
rights  incident thereto; provided, however, that nothing in this Section 3.7 or
elsewhere in this Agreement shall be construed so as to prevent Hospah or SFPMC,
from  freely  selling, pledging, or encumbering any gold Ore, gold concentrates,
gold  dore  or  gold  bullion.

          J.   Restrictions  on  Removal.  Notwithstanding  any provision of the
               -------------------------
Asset  Exchange  Agreement  or  of  this Agreement to the contrary, prior to the
expiration or surrender of the Purchase Option, neither Hospah nor SFPMC, shall,
without  the prior written consent of HNRC, which consent shall not unreasonably
be  withheld,  remove from the real property encompassed within the Hospah Owned
Property  or  the  SFPMC  Leased Property any portion of the Water System, Power
System,  Monitoring  Facilities,  Surface Runoff Drainage Facilities, Spent Ore,
Overburden or Clay (or Stockpiles of such substances), except for:

                                       23
<PAGE>
               (i)  Surplus  Personal Property sold to a third party pursuant to
Section  3.9  of  this  Agreement;

               (ii)  Non-Essential Personal Property removed by Hospah and SFPMC
pursuant  to  Section  3.8  of  this  Agreement;

               (iii)  Non-Essential  Personal  Property  retired as obsolete; or

               (iv)  such  items  of  Personal Property as may be removed in the
ordinary  course  of business, provided they are replaced with items whose value
and  utility  are  comparable  to  or  better  than  those  removed.

          K.   Right of HNRC to Request Delay in Reclamation of option Property.
               ----------------------------------------------------------------
HNRC shall have the right, at any time and from time to time and at its sole and
absolute  discretion,  to  provide to Hospah (as to the Hospah Assets) and SFPMC
(as  to  the  SFPMC Assets) a written notice setting forth specific Improvements
included  within  the  Option Property, including without limitation Alterations
and  Additions  thereto,  that HNRC would like left in place for its future use.
In  that  event,  subject  to  compliance  with  Applicable Law and the Parties'
ability  to  obtain  any  required  Licenses  or  modifications to then existing
Licenses,  Hospah and SFPMC shall not reclaim or remove and shall leave in place
for HNRC's future use, the Improvements specified in HNRC's notice.  The Parties
shall  cooperate  and  take  all  actions  to  obtain  any necessary Licenses or
modifications,  to  then  existing  Licenses.  The  inclusion  in HNRC's written
notice  to Hospah and/or SFPMC of any Improvement shall be deemed an irrevocable
election by HNRC to purchase that Improvement at such time as HNRC exercises the
Purchase  Option.

     3.8  Right  of  Hospah  and SFPMC to Remove Non-Essential Property.  At any
          -------------------------------------------------------------
time  and  from  time  to  time  prior to termination or expiration of the SFPMC
Lease,  Hospah and SFPMC shall have the right, in its or their sole and absolute
discretion  and at its or their sole cost, to dismantle and remove from the real
property encompassed within either the Hospah Owned Property or the SFPMC Leased
Property,  any  or  all Non-Essential Property for use by Hospah or SFPMC at any
other  location  in  connection  with  operations  other than the Mesquite Mine.
Non-Essential Property that Hospah or SFPMC removes in good faith from such real
property  pursuant to the provisions of this Section 3.8 shall not thereafter be
subject  to  the  Purchase  Option.

     3.9  Offer  to  Sell  Surplus Personal Property.  In the event that, at any
          ------------------------------------------
time and from time to time during the Option Period, Hospah and/or SFPMC desires
or  intends  to  sell  any  Surplus  Personal Property, Hospah (as to the Hospah
Assets)  and  SFPMC  (as  to  the SFPMC Assets) shall offer to sell such Surplus
Personal Property to HNRC in accordance with the provisions of this Section 3.9.
Hospah  and/or  SFPMC  (i.e.  the  Party  or Parties who hold an interest in the
Surplus  Personal Property at issue) shall provide to HNRC a written and binding
good  faith  offer of sale (a "Sales Offer"), setting forth with specificity the
Surplus  Personal  Property offered for sale, a sales price with respect to each
item and any other pertinent terms and conditions of sale In the event that HNRC
desires  to  purchase  any  of  such items, HNRC shall, within 30 days after the
provision  to  it  of  the Sales Offer, provide to Hospah and/or SFPMC (i.e. the
Party or Parties who hold an interest in the Surplus Personal Property at issue)

                                       24
<PAGE>
a  written  notice  (an  "Acceptance  Notice")  specifying  the Surplus Personal
Property  that  HNRC  desires to purchase and irrevocably committing to purchase
those  items  at  the  price and on the terms and conditions stated in the Sales
Offer.  The  closing  of the sale and purchase, of the Surplus Personal Property
at  issue shall be held within ten days following the provision to Hospah and/or
SFPMC,  as applicable, of the Acceptance Notice.  At such closing, the following
shall  occur  (i)  Hospah  and/or  SFPMC  (i.e. the Party or Parties who hold an
interest in the Surplus Personal Property at issue) shall execute and deliver to
HNRC  a  bill  of  sale,  in form and substance reasonably satisfactory to HNRC,
transferring  and  selling unto HNRC the Surplus Personal Property at issue, and
(ii) HNRC shall pay unto Hospah and/or SFPMC (i.e. the Party or Parties who hold
an  interest  in  the  Surplus  Personal  Property  at issue) the purchase price
specified  in  the Sales Offer.  Thereafter, Hospah and/or SFPMC (i.e. the Party
or Parties who hold an interest in the Surplus Personal Property at issue) shall
be  free  to  dispose of said surplus Personal Property in any manner it or they
see  fit.

          A.   Background and Intentions  of  the Parties.  United States Patent
               ------------------------------------------
No.  04-90-0066,  issued  on  August 17, 1990, covers approximately 387 acres of
land,  comprised of 85 patented millsite claims (the "Subject Patent Property").
It is the intention of the Parties that part of the Subject Patent Property (the
"Reversion  Property")  be  SFPMC  Leased Property and that the remainder of the
Subject  Patent  Property  (the  "Remainder Property") be Hospah Owned Property.
The  Reversion  Property  and  the  Remainder  Property  are depicted on the map
appended as Exhibit A-2 to this Agreement and are described in Exhibit H to this
Agreement.  However,  division of the Subject Patent Property into the Reversion
Property  and  the Remainder Property may require compliance with the California
Subdivision  Map  Act.  At  the  Closing, HNRC shall convey to Hospah all of the
Subject  Patent Property, which pursuant to Section 3.1 of this Agreement, shall
initially  be  classified  as  Hospah  Owned  Property.  However,  following the
Closing  and pursuant to the provisions of this Section 3.10, Hospah shall place
in  escrow  with  Escrow  Agent  a  special  warranty deed (the "Escrowed Deed")
reconveying  the  Reversion  Property  to  HNRC.  Upon  accomplishing any of the
conditions  set  forth  in clauses (i), (ii) and (iii) of the second sentence of
Section  3.10  B  and  pursuant  to  the  terms  of the Escrow Instructions, the
Escrowed  Deed  shall  be  delivered to HNRC.  Upon such delivery, the Reversion
Property  shall  become part of the SFPMC Leased Property, subject to all of the
terms  and  conditions  of  the  SFPMC  Lease  set  forth  in  Article  IV.
Contemporaneously  with  such  delivery,  HNRC  shall  confirm,  by  appropriate
instrument  in recordable form, that the Reversion Property has become a part of
the  SFPMC  Leased  Property.  The  Remainder  Property shall remain part of the
Hospah  Owned  Property.

          B.   Division of the Subject Patent Property.  After the Closing, HNRC
               ---------------------------------------
shall,  at  its  sole cost and expense, take such actions as may be necessary to
allow  the  division  of the Subject Patent Property into the Reversion Property
and  the  Remainder Property.  For purposes of this Agreement, the Escrowed Deed
shall  be  delivered to HNRC pursuant to the Escrow Instructions upon satisfying
one  or  more of the following conditions:  (i) compliance with the requirements
of  the  Subdivision  Map  Act,  including  without  limitation the preparation,
submission  and  approval  of  parcel  maps;  (ii)  obtaining from the pertinent
government  agency  or agencies a valid waiver or exemption from compliance with
the  Subdivision  Map  Act, or (iii) there shall be an acknowledgment in writing
between  HNRC  and  Imperial  County, reasonably satisfactory to SFPMC, that the
Subdivision  Map  Act is not applicable to this transaction.  HNRC shall, at its
sole  cost  and  expense,  take  such  actions as it deems necessary, prudent or

                                       25
<PAGE>
advisable, in its sole discretion, to satisfy any of the conditions set forth in
clauses (i), (ii) or (iii) of the preceding sentence.  HNRC shall have the right
to  take  such actions in Hospah's or SFPMC's name, as Hospah's or SFPMC's agent
or  in  Hospah's or SFPMC's stead.  Upon request and subject to the direction of
HNRC,  Hospah and SFPMC shall cooperate in all reasonable ways and take all such
reasonable  actions,  including  without  limitation the execution and filing of
additional  documents,  instruments  or  maps, as may be necessary or helpful to
assist  HNRC  in  such  endeavors,  provided  that Hospah and SFPMC shall not be
required to pay any out-of-pocket cost or expense in connection therewith.  Upon
accomplishing  any  of  the  conditions set forth in clauses (i), (ii) or (iii),
above, HNRC shall provide to Hospah and the Escrow Agent, pursuant to the Escrow
Instructions,  written notice requesting delivery of the Escrowed Deed, together
with relevant documentation supporting such request.  In the event that prior to
delivery  of  the  Escrowed  Deed  to  HNRC,  HNRC,  its partners, or respective
successors  or  assigns,  elect,  in  their  sole  discretion,  to  permanently
discontinue  efforts  to  permit  or  develop  the  Landfill Project, HNRC shall
provide,  written  notice  of  such  election to Hospah and SFPMC.  In the event
that,  as  of the date of HNRC's notice, the Reversion Property has not yet been
reconveyed  to  HNRC,  Hospah  and  SFPMC  shall  be  released  from all further
obligations  under this Section 3.10 to reconvey the Reversion Property to HNRC;
provided,  however,  that  HNRC  shall retain all of its other rights, title and
interest  in  or  to  the  Reversion Property, including without limitation, its
rights  under  the  Purchase Option.  Hospah may, at any time, provide to HNRC a
written inquiry regarding the status of actions taken by HNRC to comply with the
Subdivision  Map  Act and the status of the Landfill Project HNRC shall reply in
writing,  describing  such status and confirming, if a decision has been made at
the  time  of  the Hospah request, that HNRC has or has not, as the case may be,
elected  to  permanently  discontinue  efforts to permit or develop the Landfill
Project  or  other lawful, industrial, non-mining activity related to or derived
from  landfill  activities.

          C.   Rights and Obligations of the Parties Pending Reconveyance of the
               -----------------------------------------------------------------
Reversion  Property.  Notwithstanding  any  provision  of  this Agreement to the
-------------------
contrary,  prior  to  the  reconveyance  of  the Reversion Property to HNRC, the
Parties shall have the same rights and obligations with respect to the Reversion
Property,  and  shall  be  subject  to the same limitations and restrictions, as
apply  under  this  Agreement  with  respect  to  SFPMC  Leased  Property.
Notwithstanding  any  provision  of  this  Agreement to the.  contrary, prior to
delivery  of  the  Escrowed Deed to HNRC, neither Hospah nor SFPMC shall pledge,
mortgage,  hypothecate  or  otherwise  encumber  its.  interest in the Reversion
Property  except  for  Liens  granted in connection with financing transactions.
All  Liens  upon  the  Reversion Property arising by, through or under Hospah or
SFPMC shall be expressly subject and subordinated to all of the right, title and
interest  of HNRC in or to the Reversion Property, whether accrued or unaccrued,
absolute  or  contingent,  including  without  limitation  all  right, title and
interest  of  HNRC  arising under this Agreement.  Subsequent to delivery of the
Escrowed  Deed  to  HNRC,  SFPMC  may  encumber  its  leasehold  interest in the
Reversion  Property in accordance with and subject to the limitations of Section
4.12  of  this  Agreement.

          D.   Further  Assurances.  Upon  request  by  any  Party,  the Parties
               -------------------
covenant,  at  any time and from time to time, to cooperate reasonably with each
other  and  take  all  such  further  actions,  including without limitation the
execution  and  filing  of  additional  instruments  or  documents,  as  may  be
reasonably  necessary  to  carry  out  the  intent,  purposes  and  terms of the
provisions  of  this  Section  3.10.

                                       26
<PAGE>
                                   ARTICLE IV

                                   SFPMC LEASE

     4.1  Grant  of  Lease  and  Appurtenant  Easements.
          ---------------------------------------------

          A.   SFPMC  Leased  Property.  To the extent that it has the right and
               -----------------------
power  to  do  so, HNRC hereby grants and conveys unto SFPMC, its successors and
assigns,  a  lease  for  mining and other mining related purposes unto the SFPMC
Leased  Property,  on  the terms and conditions set forth in this Agreement.  As
used  in  this  Agreement,  the  term  "SFPMC  Leased Property shall mean all of
HNRC's,  right,  title  and interest, as of the Closing, in and to the following
real  and  personal  property:

               (i)  the  Unpatented Claims and Fee Property described in Exhibit
F  to  this  Agreement,  and encompassed within the area depicted and labeled as
"SFPMC  Leased  Property"  on  the maps appended as Exhibit A and Exhibit A-1 to
this  Agreement, together with all Improvements thereon, exclusive of the Hospah
Owned  Property;

               (ii)  the  Solution  Ponds,  together  with  such  real  property
adjacent  to  the  Solution  Ponds  as may be required by SFPMC during the SFPMC
Lease  Term either for expansion of the Solution Ponds_ or for surge or overflow
ponds  or  areas;

               (iii)  all  Monitoring  Facilities situated upon the SFPMC Leased
Property,  subject  in  particular  to  the  provisions  of  Section 8.2 of this
Agreement;

               (iv)  all  Surface  Runoff  Drainage Facilities situated upon the
SFPMC  Leased Property, subject in, particular, to the provisions of Section 8.3
of  this  Agreement;  and

               (v)  all  mine  fencing  situated upon the SFPMC Leased Property,
subject in particular to the provisions of Section 8.1 of this Agreement.

          B.   Access  Road  Easement  and  Solution  Pipeline  Easement.  In
               ---------------------------------------------------------
addition,  as  provided  in  Section 4.5 (as to the Access Road Easement) and in
Section  4.6  (as to the Solution Pipeline Easement) HNRC is granting unto SFPMC
appurtenant  non-exclusive  Easements for SFPMC's use and enjoyment of the SFPMC
Leased  Property.  SFPMC's  and HNRC's respective rights and obligations for the
use  of  the  Access Road Easement and the Solution Pipeline Easement are as set
forth in this Agreement.  Notwithstanding any provision of this Agreement to the
contrary,  the  obligations of SFPMC set forth in this Agreement with respect to
SFPMC  Leased Property shall apply also with respect to the Access Road Easement
and  the  Solution  Pipeline  Easement.

     4.2  Term.  The  primary term of the SFPMC Lease (the "Primary Term") shall
          ----
commence  on  the  Closing  Date  and  shall remain in effect for a period of 31
years, unless sooner terminated or surrendered in accordance with the provisions
of  this  Agreement.  The  SFPMC Lease shall remain in effect beyond the Primary
Term for so long as SFPMC continues to mine or process Ore upon the SFPMC Leased
Property or the Hospah Owned Property and otherwise to comply with the terms and
conditions  of  this  Agreement  (the  "SFPMC  Lease  Term")

                                       27
<PAGE>
provided  that under no circumstances shall the SFPMC Lease Term exceed 85 years
in  total  (including  the  Primary  Term  and  all  extensions).

     4.3  Possession and Control.  To the extent that it has the right and power
          ----------------------
to  do  so,  and  subject  to  Applicable  Law and SFPMC obtaining all necessary
Licenses, HNRC hereby grants unto SFPMC, during the SFPMC Lease Term and subject
to the terms and conditions of this Agreement, the following rights with respect
to  the  SFPMC  Leased  Property:

               (i)  the  right  of  entry;

               (ii)  to  explore for, mine, extract, produce, stockpile, remove,
transport,  leach,  concentrate,  mill, smelt, beneficiate, process, use, treat,
ship, market and sell all Ore, whether extracted from the Hospah Owned Property,
the  SFPMC  Leased  Property  or  from  other  properties,  subject  only to the
limitations  expressly set forth in this Agreement, including without limitation
in  Section  4.14

               (iii)  to  construct,  use, maintain, repair and, replace any and
all  buildings,  roads,  pipelines,  slurry  lines,  Ore  bins,  leach pads, Ore
treatment  facilities,  Ore  Stockpiles, Clay Stockpiles, overburden Stockpiles,
Spent  Ore  Stockpiles,  reservoirs, power and communication lines and any other
Improvements  of  any  kind  or  description  whatsoever,  subject  only  to the
limitations  expressly  set  forth  in  this  Agreement;

               (iv)  to  use  the  SFPMC  Leased  Property  for  the  storage or
permanent  disposal of Ore, Overburden, Clay, Spent Ore, and related by-products
produced from the Hospah Owned Property, the SFPMC Leased Property or from other
properties,  subject to the restrictions, terms and conditions set forth in this
Agreement;

               (v)  to  use  all Easements and means of access to which HNRC may
be  entitled  to, from, across and through the SFPMC Leased Property, subject in
particular to the restrictions, terms and conditions set forth in Section 4.5 of
this  Agreement

               (vi) to operate water wells, and to use, develop, impound, store,
consume  and dispose of all water and water rights, subject in particular to the
provisions  of  Sections  3.4  and  4.14  of  this  Agreement;

               (vii)  to  remove  from Stockpiles upon the SFPMC Leased Property
and  dispose  of  any  Ore,  Overburden,  Clay or Spent Ore for testing purposes
(including  without  limitation  for bulk samples, assays, geochemical analyses,
amenability  to  milling  and  recovery  determinations,  pilot  plant tests and
testing  relating  to  reclamation  methods),  without payment of any additional
consideration  whatsoever  to  HNRC;

               (viii)  to  remove from Stockpiles upon the SFPMC Leased Property
any  Ore,  Ore  concentrates,  dore  or bullion, without restriction and without
payment  of any additional consideration whatsoever to HNRC, provided that SFPMC
shall  not  remove  from the SFPMC Leased Property any Overburden, Clay or Spent
Ore,  except  to the extent expressly authorized pursuant to Articles V, VI, and
VII  of  this  Agreement;  and

                                       28
<PAGE>
               (ix)  to  use the SFPMC Leased Property for all of the mining and
other mining related.  purposes stated in this Section 4.3 in connection with or
in  furtherance  of  SFPMC's  activities  on  the Hospah Owned Property or other
properties,  subject  to  the  restrictions  and  limitations  set forth in this
Agreement.

     4.4  Rental Payments.  During the SFPMC Lease Term, SFPMC shall make rental
          ---------------
payments  to  HNRC  in  the  amount  of  $1,500 per year.  The first such rental
payment  shall  be  due  on  or  before  a  date 30 days after the Closing Date.
Subsequent  rental  payments  shall  be  due  and  payable  on  or  before  each
anniversary of the Closing Date.  Except for the rental payments described above
(and  in  partial  consideration of the rights granted to HNRC elsewhere in this
Agreement  to  remove  Overburden,  Clay  and  Spent  Ore  from the SFPMC Leased
Property  and  from  the  Hospah  Owned  Property for use in connection with the
Landfill  Project),  SFPMC  shall  not be obligated to pay unto HNRC any advance
minimum,  production  or  other  royalties  or  payments  attributable  to  the
extraction,  processing  or  removal_  of  Ore.

     4.5  Access  Road  Easement.
          ----------------------

          A.   Grant  of  Access Road Easement.  HNRC hereby grants unto SFPMC a
               -------------------------------
non-exclusive  Easement  (the  "Access  Road Easement") appurtenant to the SFPMC
Leased  Property  to  use  portions of the Present Access Road situated upon the
HNRC Retained Property, for ingress to and egress from the SFPMC Leased Property
and  the Hospah Owned Property, on the terms and conditions set forth in Article
IV,  including  this  Section  4.5.

          B.   Term.  As  an easement appurtenant to the SFPMC Lease, the Access
               ----
Road  Easement shall commence on the Closing Date and, unless sooner surrendered
or  terminated  pursuant  to the provisions of this Agreement, shall continue in
full  force  and effect throughout the SFPMC Lease Term and shall terminate upon
termination  or  expiration  of the SFPMC Lease.  Notwithstanding the foregoing,
HNRC  shall have the right, at any time and in its sole discretion, to terminate
the  Access  Road  ,Easement by.  providing SFPMC not less than six months prior
written  notice  of termination.  In the event of termination of the Access Road
Easement  pursuant  to  the  preceding sentence, the termination shall be deemed
effective  only  upon  the  later  to  occur  of  the  following  events:

               (i)  the  effective  date  of  termination  of  the  Access  Road
Easement,  as  set  forth  in  HNRC's written notice to SFPMC (which in no event
shall  be  less  than  six  months  from  and  after the date of the notice); or

               (ii)  completion  and  construction  of  a new access road to the
Mesquite  Mine  pursuant  to  Section  4.5  C  of  this  Agreement.

Upon  termination  of  the  Access  Road  Easement, SFPMC shall duly execute and
deliver  to HNRC a release of all of SFPMC's right, title and interest in and to
the  Access  Road Easement and the property covered thereby.  Such release shall
be  in  form and substance reasonably satisfactory to HNRC and shall be suitable
for  recordation.

          C.   Construction  of  New  Access  Road.
               -----------------------------------

               (1)  Route of the New Access Road.  Pursuant to the provisions of
                    ----------------------------
this

                                       29
<PAGE>
Section  4.5  C,  SFPMC and HNRC shall cooperate to construct and complete a new
access  road  to the Mesquite mine prior the commencement of Commercial Landfill
Operations.  HNRC  shall provide to SFPMC not less than six months prior written
notice  of its intention to commence Commercial Landfill Operations.  As soon as
practicable following the provision of such notice, SFPMC and HNRC shall consult
with  each  other relative to the construction of a new access road from Highway
78  to  the  administration  and  plant area of the Mesquite Mine.  Prior to the
commencement  of  construction,  SFPMC  and  HNRC  shall  agree  in writing to a
mutually  acceptable  route for the new access road.  A map or maps illustrating
the  new route shall be appended to the written agreement of SFPMC and HNRC.  In
the  event that the route of the new access road crosses any portion of the HNRC
Retained  Property, HNRC shall, to the extent that it has the right and power to
do  so,  grant  unto  SFPMC an exclusive Easement for the new access road, which
Easement  shall be appurtenant to the SFPMC Leased Property and shall be subject
to  all  of  the  terms and conditions of the SFPMC Lease and this Agreement (on
terms and conditions comparable to those applicable to the Access Road Easement)
Such grant of Easement shall be in form and substance reasonably satisfactory to
SFPMC  and  shall  be  suitable  for  recordation.

               (2)  Construction  of  the  New Access Road.  The new access road
                    --------------------------------------
shall  be constructed to a length, width, standard and quality comparable to the
Present  Access  Road  as  of  the  Closing  Date.  The new access road shall be
constructed  by HNRC or by a contractor of HNRC's selection.  HNRC shall pay and
bear  all  costs and expenses associated with the construction of the new access
road,  including  without  limitation the fees and expenses of the road engineer
and of the construction contractor.  HNRC shall indemnify the Hospah Indemnitees
against  all  Losses  resulting  from  Third  Party Claims that arise out of the
construction  of the new access road.  All instructions, guidance and directions
to  the  road  engineer  and  construction contractor shall be provided by HNRC,
subject  to  the mutual agreement of SFPMC and HNRC relative to the route of the
new  access  road.  HNRC  shall provide to SFPMC written notice of completion of
construction  and,  if  the  new  access road meets the design and construction.
criteria  set  forth  in  this Section 4.5 C, SFPMC shall execute and deliver to
HNRC  a  written  notice  of  acceptance  of  the  new  access  road.

               (3)  Subsequent  Use  of  Access  Roads.  Subsequent  to  SFPMC's
                    ----------------------------------
acceptance  of  the  new access road, HNRC, its agents and representatives shall
not  use  the  new access road without the prior written consent of SFPMC, which
consent  shall  not  be  unreasonably  withheld,  and  SFPMC,  its  agents  and
representatives  shall  not use the portions of the Present Access Road situated
upon the HNRC Retained Property without the prior written consent of HNRC, which
consent  shall  not  unreasonably be withheld.  It is the intention of SFPMC and
HNRC  that,  in  general  and  to the extent practicable, each of them shall use
separate  access  roads so as to minimize interferences between their respective
operations.

          D.   Cooperation and Coordination.  The Parties shall cooperate in all
               ----------------------------
reasonable  ways, including without limitation by the coordination of schedules,
in  order to ensure that their respective uses of the Present Access Road do not
interfere,.  hinder  or cause undue delays to the operations of the other Party;
provided,  however,  that under no circumstances shall HNRC's use of the Present
Access Road be allowed to cause a Material Adverse Effect upon the operations of
the  Mesquite  Mine.

                                       30
<PAGE>
          E.   Repairs  and  Maintenance.  During  the term of.  the Access Road
               -------------------------
Easement, SFPMC shall be solely responsible and obligated to repair and maintain
the  Present Access Road, so that at no point in time will the condition thereof
be  materially,  worse than on the Closing Date.  Notwithstanding the foregoing,
in  the  event that SFPMC and Hospah discontinue or, cease all operations at the
Mesquite  Mine  (permanently  or  temporarily),  SFPMC shall not be obligated to
maintain  or repair the Present Access Road during such period of discontinuance
or cessation.  In that event, HNRC shall have the right, but not the obligation,
at  its  sole  election and cost, to maintain and repair the Present Access Road
during  the  period of discontinuance or cessation.  Hospah and SFPMC shall take
all  actions  necessary  to  ensure  that,  upon  termination of the Access Road
Easement,  the  Present  Access  Road  is  left in a condition no worse than its
condition  as  of  the  Closing  Date.

          F.   Other  Relocations  of the Present Access Road.  Each of HNRC (at
               ----------------------------------------------
any  time  and  from  time to time) and SFPMC (at any time and from time to time
during  the  term  of the Present Access Road) shall have the right, at its sole
election  and  cost,  to reroute or relocate the Present Access Road or portions
thereof,  provided that the new route does not cause a, Material Adverse Effect.
upon  the  operations or interests of the other Party, and provided further that
the rerouted or relocated road is designed and built to a standard and condition
at  least  comparable  to  the  Present  Access  Road.

     4.6  Easement  for  a  Process  Solution  Pipeline.
          ---------------------------------------------

          A.   Grant  of  Solution  Pipeline  Easement.  HNRC hereby grants unto
               ---------------------------------------
SFPMC,  its successors and assigns, the Solution Pipeline Easement to construct,
operate,  maintain  and  repair  a  process  solution  pipeline  (together  with
accompanying  water  supply  lines)  upon the HNRC Retained Property in order to
connect  the Solution Ponds to the leach pads (currently situated upon the SFPMC
Leased  Property)  and  associated  processing  facilities  on  the  terms  and
conditions  set  forth  in Article IV, including this Section 4.6.  Although the
Solution  Pipeline  Easement  is  of  a  limited duration, the personal property
comprising  the process solution pipeline itself shall be owned by SFPMC as part
of  the  Hospah  Owned  Property.

          B.   Term.  As  an  easement  appurtenant  to  the  SFPMC  Lease,  the
               ----
Solution Pipeline Easement shall commence on the Closing Date and, unless sooner
surrendered  or  terminated  pursuant to the provisions of this Agreement, shall
continue  in  full  force  and  effect throughout the SFPMC Lease Term and shall
terminate  upon  termination  or  expiration  of  the  SFPMC  Lease.

          C.   Location  of  Easement.  The Solution Pipeline Easement shall run
               ----------------------
from  the  Solution  Ponds  to  the  leach  pads  situated upon the SFPMC Leased
Property.  The  Solution  Pipeline  Easement  shall  be of a sufficient width to
allow  SFPMC  to  conduct  all  activities  relating  or  incidental  to  the
construction, operation, maintenance and repair of the process solution pipeline
and  related  facilities.  The  route  of  the  Solution Pipeline Easement shall
generally follow the same route as the pipeline and/or trenches employed by HNRC
immediately  prior  to  the Closing for purposes of circulating process solution
between  the  Solution  Ponds  and  the  leach  pads  and  associated processing
facilities.  Upon  request  by

                                       31
<PAGE>
SFPMC  or  HNRC,  SFPMC  and HNRC shall meet for purposes of establishing a more
definitive  description  of  the  location  and  width  of the Solution Pipeline
Easement.

          D.   Environmental  Responsibility.  HNRC shall retain all Reclamation
               -----------------------------
and  Environmental  Responsibilities  (if  any),  with  respect  to  the process
solution  pipeline  and  the  real  property  covered  by  the Solution Pipeline
Easement,  that  had  accrued and that were legally required to be performed and
completed  prior  to  the Closing Date.     SFPMC shall assume all other accrued
and  unaccrued  Reclamation  and Environmental Responsibilities, now existing or
arising  in the future,, with respect to the process solution pipeline, the real
property  covered  by  the  Solution  Pipeline Easement, and all Alterations and
Additions..  Within  a  reasonable  period  of  time following the expiration or
termination  of  the SFPMC Lease Term, SFPMC shall dismantle and remove from the
HNRC  Retained Property the process solution pipeline, accompanying water supply
lines  and  all  Alterations  and Additions thereto, and shall fully reclaim, in
accordance  with  the  terms  and  conditions  of  all  applicable  Licenses and
Applicable  Law,  the  real  property covered by the Solution Pipeline Easement.
SFPMC shall indemnify the HNRC Indemnitees against all Losses, including without
limitation  all  Losses  arising  out  of Third Party Claims, that relate to the
process  solution  pipeline  or the operation thereof.  Each of Hospah and SFPMC
(during  the  period  of  operations  of the Mesquite Mine) and HNRC (during the
period_  of  operations  of  the  Landfill  Project)  shall provide to the other
Parties  written  notice  of  any  release,  spill, discharge or emission of any
leachate, gas, contaminated or toxic material or any other substance required to
be  reported  to any governmental agency under any applicable Environmental Law.

     4.7  Standard  of Operations.  Subject to SFPMC's rights to surrender SFPMC
          -----------------------
Leased  Property  from  the  SFPMC  Lease  in  accordance with the provisions of
Section 4.18 of this Agreement, SFPMC shall, at all times during the SFPMC Lease
Term, protect, maintain and keep in good standing all real and personal property
comprising  or  encompassed  within the SFPMC Leased Property, including without
limitation  all Alterations and Additions thereto.  Subject to SFPMC's rights to
surrender  SFPMC  Leased  Property  from  the SFPMC Lease in accordance with the
provisions  of  Section  4.18  of  this Agreement, SFPMC shall timely, fully and
properly make all filings, perform all assessment work and pay all fees, rentals
and  other  payments  required  under  Applicable Law to maintain all Unpatented
Claims  encompassed  within  the  SFPMC  Leased  Property.

     4.8  No Implied Covenants.  Except as expressly set forth in this Agreement
          --------------------
to  the contrary, SFPMC does not make any express or implied covenant to conduct
any  activity  upon  or for the benefit of the SFPMC Leased Property.  Except as
expressly  set  forth  in  this  Agreement  to  the contrary, whether or not any
activity  allowed  under  this  Agreement shall at any time be conducted and the
location,  manner,  method, extent, rate and timing, of such activities shall be
determined  within  the  sole  and  absolute  discretion  of  SFPMC

     4.9  Reclamation.  HNRC  shall  retain  all  Reclamation  and Environmental
          -----------
Responsibilities  (if  any),  with  respect to the SFPMC Leased Property and all
Improvements  thereon,  that  had  accrued  and that were legally required to be
performed  and completed prior to the Closing Date., SFPMC shall and does hereby
assume  all,  other  accrued  and  unaccrued  Reclamation  and  Environmental
Responsibilities,  now  existing  or  arising at any time during the SFPMC Lease
Term,  with  respect  to  the  SFPMC  Leased  Property, all Improvements thereon

                                       32
<PAGE>
and  all  Alterations  and  Additions  thereto,  including  without  limitation
Improvements  constructed or placed upon the SFPMC Leased Property by SFPMC, its
agents  or  contractors  during the SFPMC Lease Term.  Termination, surrender or
expiration  of  the SFPMC Lease shall not relieve or release SFPMC from any such
Reclamation  and Environmental Responsibilities.  Pursuant to Articles V, VI and
VII  of this Agreement, HNRC may, under certain specific circumstances, reassume
Reclamation  and  Environmental  Responsibilities with respect to certain of the
Overburden,  Clay and Spent Ore situated or to be situated upon the SFPMC Leased
Property.  Except  as  expressly,  set  forth in this Agreement to the contrary,
including  without  limitation  in  the  Articles  referenced  in  the preceding
sentence,  upon  expiration, surrender or termination of the SFPMC Lease, SFPMC.
shall  reclaim  all  portions  of  the  SFPMC Leased Property, including without
limitation  all  Improvements  thereon,  together  with  all  Alterations  and
Additions,  in  accordance  with  the  terms  and conditions of all Licenses and
Applicable  Law.  SFPMC  shall  have  the  right  to enter upon the SFPMC Leased
Property  subsequent  to  the  SFPMC  Lease Term for purposes of performing such
reclamation  work,  provided  that  all  such  work  shall be performed within a
reasonable  period  of  time.  Notwithstanding  the foregoing, at the request of
HNRC and subject to the Parties obtaining any necessary Licenses or modification
to  then  existing  Licenses, SFPMC shall forego or delay the reclamation of any
Improvements  designated  by  HNRC and, unless the Parties agree otherwise, HNRC
shall  thereupon  assume  all  reclamation  obligations  with  respect  to  the
designated  Improvements.  The Parties shall cooperate in all reasonable ways to
obtain  such  Licenses  or  modifications  to  Licenses.

     4.10  Licenses.  HNRC  understands  that  SFPMC  may make efforts to obtain
           --------
Licenses  in connection with the exercise by SFPMC of its rights under the SFPMC
Lease.  Upon  request  by Hospah or SFPMC, as the case may be, HNRC shall assist
and  cooperate  fully  with  Hospah  or  SFPMC,  as the case may be, in any such
endeavors, including without limitation by the execution and filing of pertinent
documents,  provided  that  HNRC  shall  not  be  obligated to incur or bear any
out-of-pocket  costs  in  connection  with  such  efforts.

     4.11  Taxes.  During  the  SFPMC  Lease  Term, SFPMC shall pay when due all
           -----
taxes  and  assessments,  including  without  limitation  all  real and personal
property  taxes,  levied  upon, assessed against or relating to the SFPMC Leased
Property,  the  Access  Road Easement, the Solution Pipeline Easement, or to any
Improvements or personal property situated thereon, or Alterations and Additions
thereto.  With  respect  to  such taxes levied or assessed with respect to 1993,
taxes  shall  be  prorated as of the Closing Date, HNRC shall be responsible for
the taxes attributable to the period prior to and including the Closing Date and
SFPMC  shall  be responsible for the taxes attributable to the period subsequent
to  the  Closing  Date.  In  the  event  that  the SFPMC Lease is surrendered or
terminated,  in  whole  or  in part, prior to the end of any particular calendar
year, taxes levied and assessed with respect to that calendar year for the SFPMC
Leased  Property  at  issue  shall  be  prorated as of the effective date of the
surrender  or termination, SFPMC shall be responsible for the taxes attributable
to  the  period  prior  to that date and HNRC shall be responsible for the taxes
attributable  to  the period from and after that date.  SFPMC shall pay when due
all  taxes and assessments imposed or assessed in connection with its operations
upon  the  SFPMC Leased Property, including without limitation any net proceeds,
production, occupation, sales, severance, privilege, ad valorem or other similar
or  related  taxes.  Each of SFPMC and HNRC shall provide to the other copies of
all  bills,  demands,  notices,  statements  or  valuations received by it which
relate  to  any  tax  or  assessment

                                       33
<PAGE>
described in this Section 4.11.  Additionally, upon request by HNRC, SFPMC shall
provide to HNRC evidence of payment by it of all applicable taxes.

     4.12  Financing.
           ---------

          A.   Liens.  SFPMC  shall  not  encumber  the  SFPMC  Leased Property,
               -----
except  for  Liens  and  encumbrances  granted  in  connection  with  financing
transactions,  (collectively,  "Financing  Liens").  SFPMC shall take all action
necessary  too  ensure  that,  upon  termination, surrender or expiration of the
SFPMC  Lease,  in  whole or in part, the SFPMC Leased Property shall be free and
clear  of  all  Liens  arising  by  and  through  SFPMC, its Affiliates or their
respective  agents  or  contractors.  Notwithstanding  any  provision  of  this
Agreement  to the contrary, (1) all Liens upon the SFPMC Leased Property arising
by, through or under SFPMC shall be expressly subject and subordinated to all of
the  right,  title  and  interest  of  HNRC  in or to the SFPMC Leased Property,
whether  accrued  or  unaccrued,  absolute  or  contingent,  including  without
limitation  all  right, title and interest of HNRC arising under this Agreement;
and (ii) all Liens upon the SFPMC Leased Property, the Access Road Easement, the
Solution  Pipeline Easement and the Exchange Parcel arising by, through or under
HNRC  shall be expressly subject and subordinated to all of the right, title and
interest of SFPMC in or to such property, whether accrued or unaccrued, absolute
or  contingent,  including  without limitation, all right, title and interest of
SFPMC  arising  under  this  Agreement.  HNRC  shall have the right, at its sole
discretion  and  at any time and from time to time, to pay off and discharge, in
whole  or  in  part, any Lien (other than Financing Liens) upon the SFPMC Leased
Property  arising by or through SFPMC, its Affiliates or their respective agents
or  contractors,  in which case HNRC shall be subrogated to all right, title and
interest of the holder of such Lien.  Additionally, HNRC shall have the right to
credit  against  the  Option  Purchase  Price  any  amounts  expended by HNRC in
connection  with  the  discharge,  in  whole  or  in  part,  of  such  Liens.

          B.   Cooperation with Financing Endeavors.  At the request and subject
               ------------------------------------
to  the  direction  of  Hospah and/or SFPMC, HNRC shall take all such reasonable
actions  as  may  be  necessary  or  helpful  to  assist  Hospah and/or SFPMC in
obtaining  financing  with  respect  to  the Mesquite Mine or in pledging any of
Hospah's  and/or  SFPMC's respective right, title or interest in or to the SFPMC
Leased  Property,  the  Hospah Owned Property, the HNRC Retained Property and/or
Hospah's  and  SFPMC's  respective  other rights and interests in and under this
Agreement in connection with such financing, including without limitation by the
execution  and  delivery  of estoppel certificates relating to the status of the
SFPMC  Lease  or  of  this  Agreement,  provided  that:  (i)  HNRC  shall not be
obligated  to incur or bear any out-of-pocket cost or expense in connection with
such  endeavors;  and  (ii)  HNRC shall not be obligated to take any action that
limits  or  reduces  its  rights  or  that  increases its obligations under this
Agreement.  At  the  request  and  subject  to the direction of HNRC, Hospah and
SFPMC  shall  take all such reasonable actions as may be necessary or helpful to
assist  HNRC  in  obtaining financing with respect to the Landfill Project or in
pledging  any  of  HNRC's  right,  title  or  interest in or to the SFPMC Leased
Property,  the  Hospah  Owned Property, the HNRC Retained Property and/or HNRC's
other  rights  and interests in and under this Agreement in connection with such
financing,  including  without  limitation  by  the  execution  and  delivery of
estoppel  certificates  relating  to,  the  status of the SFPMC Lease or of this
Agreement,  provided  that:  (a)  Neither Hospah nor SFPMC shall be obligated to
incur  or  bear  any  out-of-pocket  cost  or  expense  in  connection with such
endeavors;  and  (b)  Neither  Hospah  nor  SFPMC  shall  be  obligated  to take

                                       34
<PAGE>
any  action  that limits or reduces its rights or that increases its obligations
under  this  Agreement.  The  estoppel  certificates referred to in this Section
4.12.B  shall,  if  requested,  state,  if then true and except as otherwise set
forth  in  the estoppel certificate:  (1) that the SFPMC Lease is the only lease
between the parties for the SFPMC Leased Property and that, except for the SFPMC
Lease  and  this  Agreement,  there  are  no  other agreements, written or oral,
between  the  Parties  relating to the SFPMC Leased Property or the SFPMC Lease;
(2)  that no consent or approval is required of the Party executing the estoppel
certificate in connection with the financing transaction; (3) the then remaining
term  of  the SFPMC Lease; (4) that the Party executing the estoppel certificate
has  not in any way transferred, pledged or assigned any portion of its interest
under  the SFPMC Lease or, if such Party has so transferred, pledged or assigned
such  interest,  the name and address of the transferee, pledgee or assignee, as
appropriate;  (5)  that the SFPMC Lease and this Agreement are in full force and
effect  and  enforceable against the Party executing the estoppel certificate in
accordance  with their terms; (6) that the Party attempting, to obtain financing
is,  to  the best knowledge of the Party executing the estoppel certificate, not
in  default  with  respect  to  any  monetary  obligation  (including,  without
limitation,  taxes  and assessments) or any non monetary obligation or any other
term  or  condition  under the SFPMC Lease or under this Agreement; and (7) that
the  Party  executing  the estoppel certificate has no accrued claim against the
Party  attempting  to obtain financing which could result, to the best knowledge
of  the,  Party  executing  the  estoppel certificate, in any offset, defense or
counterclaim  against  any  of the monetary obligations or charges payable under
the  SFPMC  Lease  or  under  this  Agreement.

     4.13  Title  Curative  Measures.
           -------------------------

          A.   Title  Defect.  If title to any part of the SFPMC Leased Property
               -------------
is defective,, SFPMC shall have the right (during the SFPMC Lease Term), but not
the  obligation,  to  undertake  to  cure  any  such  defects or to defend or to
initiate  litigation  to  perfect,  defend,  or  cure  title to the SFPMC Leased
Property.  Any  actions  that  SFPMC  elects  to take or pursue pursuant to this
Section  4.13  A  shall  be at its sole discretion and at its sole cost.  In the
event  that,  during  the  SFPMC  Lease  Term, HNRC desires, on its own part, to
undertake  to  cure  any title defects or to defend or to initiate litigation to
perfect,  defend or cure title to the SFPMC Leased Property, HNRC shall provide_
to  SFPMC  written  notice  of the title defects at issue and the action that it
proposes  to  take with respect thereto.  In the event that, within a reasonable
period  of  time  following  such  notice,  SFPMC has not initiated the proposed
action on its own or if SFPMC fails diligently to pursue such action thereafter,
HNRC  shall  be free, in its sole discretion and at its sole cost, to take such.
actions  as  it deems desirable or advisable with respect to such title matters.

          B.   Amendment,  Relocation  and  Abandonment  of  Unpatented  Claims.
               ----------------------------------------------------------------
During the SFPMC Lease Term, SFPMC shall have the right, but not the obligation,
to  amend,  relocate  or abandon any of the Unpatented Claims encompassed within
the  SFPMC  Leased  Property,  to  the extent that such amendment, relocation or
abandonment  is reasonably necessary to facilitate or optimize the operations of
the  Mesquite  Mine.  SFPMC  shall  provide  to  HNRC no less than 30 days prior
written  notice  of  such a proposed amendment, relocation or abandonment.  Such
notice  shall  set  forth with specificity the action to be taken, the rationale
therefor and the specific Unpatented Claims involved.  HNRC shall have the right
to consult with SFPMC relative to the advisability of the proposed action.  HNRC
shall  also  have  the

                                       35
<PAGE>
right,  by  providing  written  notice thereof to SFPMC within the 30 day period
described  above, to elect to receive from SFPMC, at no charge, an assignment or
conveyance  of  any Unpatented Claims proposed for abandonment.  Within ten days
following the provision of such written notice to SFPMC, SFPMC shall execute and
deliver  to  HNRC a deed, in form and substance reasonably satisfactory to HNRC,
conveying  unto  HNRC  the  Unpatented  Claims  at  issue.  Any  new  locations,
amendments  or  relocations  effected  or  established  by SFPMC pursuant to the
provisions  of  this  Section  4.13  B shall be in the name of HNRC and shall be
deemed  part  and  parcel of the SFPMC Leased Property, subject to all the terms
and  conditions  of  this Agreement.  Except as set forth above to the contrary,
HNRC  shall  cooperate with any amendment, relocation or abandonment proposed by
SFPMC  and,  upon  request  by and subject to the direction of SFPMC, HNRC shall
take  all  reasonable actions to assist therein, including without limitation by
the  execution  and  filing of instruments, notices or other documents, provided
that HNRC shall not be obligated to incur any out-of-pocket costs or expenses in
connection  with  such  actions.

          C.   Exchanaes.  HNRC  intends to pursue an exchange of lands with the
               ---------
BLM,  pursuant  to  which  HNRC would convey to the BLM certain Fee Property not
directly  associated  with the operations of the Mesquite Mine and the BLM would
convey  to  HNRC fee title to certain public lands, including without limitation
certain  public  lands  situated  within the Landfill Footprint.  Certain of the
public  lands  at  issue  (in  which  HNRC  may attempt to obtain fee title) are
currently  covered  by  Unpatented  Claims  encompassed  within the SFPMC Leased
Property.  At  the request and subject to the direction of HNRC, SFPMC covenants
to  cooperate  with  any  such  exchange  and to take all reasonably practicable
actions  in furtherance thereof, including without.  limitation by the execution
and filing of instruments, notices or other documents, provided that SFPMC shall
not be obligated to incur any out-of-pocket costs or expenses in connection with
such  actions.  Any fee title in real property obtained by HNRC pursuant to such
a  land  exchange  shall,  to  the  extent that the land at issue was previously
covered  by  Unpatented  Claims encompassed within the SFPMC Leased Property, be
deemed  part  and  parcel of the SFPMC Leased Property, subject to all the terms
and conditions of this Agreement..  Upon SFPMC's request, HNRC shall execute and
deliver  to  SFPMC  an  appropriate  instrument in form and substance reasonably
satisfactory to SFPMC, confirming that such newly-acquired title to such parcels
is  subject  to  this Agreement as a portion of the SFPMC Leased Property.  HNRC
shall  provide to SFPMC not less than 90 days prior written notice of its intent
to  close  such  a land exchange, with the BLM.  The notice shall set forth with
specificity  the  lands involved in the exchange.  SFPMC shall have the right to
consult  with  HNRC  relative  to  the  advisability  of  the proposed exchange.
Notwithstanding  any provision of this Agreement to the contrary, HNRC shall not
effect  any land exchange with the BLM with respect to the SFPMC Leased Property
that  would  cause a Material Adverse Effect upon the operations of the mesquite
mine.

          D.   Additional  and After-Acquired Title.  If, during the SFPMC Lease
               ------------------------------------
Term,  HNRC  acquires  any  further  right, title or interest in or to the SFPMC
Leased  Property,  HNRC shall provide SFPMC with written notice thereof and such
right,  title  and  interest shall, without payment or additional consideration,
become  part and parcel of the SFPMC Leased Property subject to all of the terms
and conditions of this Agreement.  Upon SFPMC's request,_ HNRC shall execute and
deliver  to  SFPMC  an  appropriate  instrument  in  form  and  substance

                                       36
<PAGE>
reasonably  satisfactory  to SFPMC, confirming that such newly-acquired title to
such  parcels  is  subject  to  this  Agreement as a portion of the SFPMC Leased
Property.

     4.14  Restriction  on  Certain  Drilling  and Excavation.
           --------------------------------------------------

          A.   General  Prohibition.  Except  to  the  extent  expressly allowed
               --------------------
under  Section  4.14 B of this Agreement, neither Hospah nor SFPMC shall conduct
any  drilling  or  significant  excavation  operations,  (i) within the Landfill
Footprint,  or  (ii)  within  areas  adjacent  to  the  Landfill Footprint where
subsidence  could  adversely  affect  the  Landfill Footprint.  This restriction
shall  apply  only with respect to operations upon the SFPMC Leased Property and
to  operations  upon  the  Reversion Property (including without limitation, the
Leased  Exchange  Property).  SFPMC  and/or Hospah shall provide to HNRC no less
than  30  days  prior written notice of its intention to conduct any drilling or
significant  excavation  operations  upon  the  MILS  13 patented millsite claim
(which  claim  is  encompassed  within  the  Hospah  Owned  Property).

          B.   Drilling  of  Monitoring  Wells.  The  provisions of this Section
               -------------------------------
4.14 shall not be construed as prohibiting SFPMC from drilling monitoring wells,
installing a Vados monitoring system or conducting other drilling or excavations
that  are  reasonably necessary in connection with the construction or operation
of  a  new leach pad upon the SFPMC Leased Property, provided that, no less than
30  days prior to the commencement of the drilling or excavation at issue, SFPMC
provides  to  HNRC written notice of its intentions (which notice shall describe
and  specify the size, depth, scope, and location of the anticipated drilling or
excavation  as  well as the reason or need therefor), and provided further that,
prior  to  surrender of the leach pad at issue from the SFPMC Lease, SFPMC shall
completely,  permanently,  and  thoroughly  plug  and  fill  the  drill  hole or
excavation  at  issue,  from  the  surface  to  its  total  depth.

     4.15  Overlook  Trail.  To the extent that it has the right and power to do
           ---------------
so,  SFPMC shall provide the public with access over the Present Access Road, as
well  as  over  any new access road constructed pursuant to Section .4.5 of this
Agreement,  in  order  to  facilitate  visitation  by the public of the existing
self-guided  overlook  trial,  as  further  described  in  the Landfill EIS-EIR.
During  the  SFPMC  Lease Term and at SFPMC's sole cost and expense, SFPMC shall
maintain  and  repair  such  overlook  trail  in  accordance  with the terms and
conditions  of  applicable  Licenses and agreements with the BLM and so that its
condition at all times is at least comparable to its condition as of the Closing
Date.  SFPMC  shall  take  all  actions  relative to the overlook trail required
pursuant to applicable Licenses, as the same may change or be modified from time
to  time.  The  obligations  set  forth in this Section 4.15 may, be modified or
terminated  pursuant  to  a written agreement between the Parties, provided that
the  BLM  agrees  to  such  modification  or  termination.

     4.16  Access by HNRC.  HNRC, its agents and designees shall have the right,
           --------------
at  any time and from time to time upon the provision of reasonable prior notice
to  SFPMC,  to enter upon the SFPMC Leased Property for any purposes relating to
the  Landfill  Project  or  in  furtherance  of  any right granted or obligation
assigned  to  it  under  this  Agreement,  providing  that  no  such entry shall
interfere  with  or  cause a Material Adverse Effect upon the, operations of the
Mesquite  Mine.  Additionally, subject to compliance with Applicable Law and the
requirements  of  SFPMC's  health  and  safety  program,  HNRC,  its  agents and
designees  shall

                                       37
<PAGE>
have  the  right,  no  more than once during any three month period and upon not
less  than ten days prior written notice to SFPMC, at a mutually convenient time
and  during  normal  business hours, and at the sole risk of HNRC, to enter upon
the  SFPMC  Leased  Property  for  purposes  of  inspecting  the  operations and
facilities  of  the Mesquite Mine.  SFPMC or its designated representative shall
have  the  right to accompany HNRC upon any such inspection.  Any entry upon the
SFPMC  Leased Property by HNRC, its agents or designees pursuant to this Section
4.16  shall  be  subject  to the Indemnities set forth in Section 9.12 A of this
Agreement.

     4.17  Insurance.  Throughout  the  SFPMC  Lease Term, SFPMC shall maintain,
           ---------
with  financially  responsible  insurance  companies  fully licensed to transact
business  in  the  State  of  California,  policies  of  insurance  covering its
operations  upon  the SFPMC Leased Property.  Such policies of insurance shall,.
at  a minimum, be of the types and in coverage amounts customarily maintained by
operators  of  mines  comparable  in size and scope to the Mesquite Mine.  SFPMC
shall  also  ensure  that  all  of its agents and contractors maintain insurance
coverages  in  compliance with the standards set forth above.  Prior to entering
upon  the  SFPMC  Leased  Property,  SFPMC  shall  deliver  to HNRC certificates
evidencing  the required insurance coverages.  Each certificate shall include an
endorsement  stating  that  HNRC  shall  be given not less than thirty (30) days
prior  written notice of any termination, cancellation or reduction of coverage.
HNRC  shall  be  named as an additional insured under all policies of insurance.
Likewise,  whenever  HNRC  is  conducting  Landfill related activities on Hospah
Owned  Property  (other  than  casual  use  such  as  inspection,  collection of
monitoring  data,  etc.)  HNRC  will provide similar insurance coverage and will
name  Hospah  and  SFPMC as additional insureds under all policies of insurance.

     4.18  Termination  and  Surrender.
           ---------------------------

          A.   Surrender  by SFPMC.  SFPMC shall have the right, at any time and
               -------------------
from  time to time, to surrender and terminate the SFPMC Lease, as to all or any
part  of the SFPMC Leased Property, the Access Road Easement and/or the Solution
Pipeline  Easement,  by providing to HNRC written notice of such surrender.  The
termination shall take effect upon the date specified in SFPMC's notice.  Except
as expressly set forth in this Agreement to the contrary, surrender of the SFPMC
Lease by SFPMC, in whole or in part, shall not relieve or release SFPMC from any
of its responsibilities or obligations arising under this Agreement with respect
to  the  surrendered  Property,  including  without  limitation  Reclamation and
Environmental Responsibilities.  Furthermore, in the event that SFPMC surrenders
any  Unpatented Claims from the SFPMC Leased Property after September 1, 1993 or
after  July  1 of any calendar year subsequent to 1993, SFPMC shall nevertheless
be  responsible  to perform all work, file all documents and * make all payments
required by Licenses or Applicable Law to maintain the Unpatented Claims in good
standing  through  the remainder of that calendar year.  In the event that SFPMC
surrenders some but not all of the SFPMC Leased Property, the SFPMC, Lease shall
remain in full force and effect with respect to that portion of the SFPMC Leased
Property  that  is not surrendered.  Surrender of leach pads and associated real
property from the SFPMC Lease shall be governed by the provisions of Article VII
of  this  Agreement.  Notwithstanding  any  provision  of  this Agreement to the
contrary,  in  the  event  that SFPMC determines that commercial gold mining and
mineral  processing  operations  are permanently concluded at the Mesquite Mine,
SFPMC  shall  surrender  the  SFPMC  Lease,  the  Access  Road

                                       38
<PAGE>
Easement  and  the  Solution Pipeline Easement in their entirety, subject to the
on-going  obligations  and  responsibilities  set  forth  in  this  Agreement.

          B.   Termination  With Respect to Areas Within the Landfill Footprint.
               ----------------------------------------------------------------
The  Leased  Exchange  Property  is  leased to SFPMC as part of the SFPMC Leased
Property,  and  is  situated within the Landfill Footprint.  Notwithstanding any
provision  of  this Agreement to the contrary, HNRC shall have the right, at any
time  and  from time to time, upon not less than 90 days prior written notice to
SFPMC,  to,  terminate  the  SFPMC Lease with respect to any such lands situated
within  the  Landfill  Footprint,  including  the  Leased  Exchange  Property,
reasonably  required for use in connection with the Landfill Project., Upon such
termination,  HNRC  shall  assume  all  accrued  and  unaccrued  Reclamation and
Environmental Responsibilities with respect to the property at issue, as well as
with  respect to the Overburden and Clay Stockpiles thereon.  Additionally, upon
receipt  of  a sufficient invoice, HNRC shall reimburse to SFPMC any Incremental
Costs  that  SFPMC  incurs  as  a  result  of  the  termination.

     4.19  Prohibition  on  Dumping  on  the  Portion of the 220 Dump within the
           ---------------------------------------------------------------------
Landfill Footprint.  Neither  SFPMC  nor Hospah shall dump or stockpile any Ore,
-----------------
Spent  Ore,  Clay,  Overburden or other materials on those portions of the 11220
Dump"  situated  within  the  Landfill  Footprint  (area  to  be  lined) and the
backslope necessary to allow construction of the lined landfill facility, except
for  the  following:

               (i)  inert  materials  (average 350 tons per year) to be disposed
of  by Hospah or SFPMC at the inert material landfill within the "220 Dump", and

               (ii)  the Overburden needed to cover such materials in accordance
with  applicable  rules,  regulations  and  permits.

     4.20  Provisions  Contained  Within  Other  Articles.  In  addition  to the
           ----------------------------------------------
provisions  of  this  Article  IV, there.  are numerous other provisions of this
Agreement that relate to the SFPMC Lease or the SFPMC Leased Property.  All such
provisions  are  incorporated  by  reference  into this Article IV and the SFPMC
Lease.  All  rights  and obligations of the Parties with respect to SFPMC Leased
Property  set  forth  in other Articles of this Agreement shall be deemed rights
and  obligations  arising  under  the  SFPMC  Lease.

     4.21  Assignment.  SFPMC  may assign all or any part of its interest in the
           ----------
SFPMC  Lease  to  any  person or entity provided that SFPMC provide HNRC with at
least thirty (30) days advance notice and any such assignment be made subject to
all  the terms and conditions of this Agreement, and further provided that SFPMC
may,  without  the  consent  of  HNRC, grant Financing Liens (including Deeds of
Trust)  pursuant  to  Section  4.12.

                                    ARTICLE V

                                   OVERBURDEN

     5.1  Assumption  of  Reclamation and  Environmental Responsibilities.  HNRC
          ---------------------------------------------------------------
shall  retain  all Reclamation and Environmental Responsibilities (if any), with
respect  to  Overburden and Stockpiles of Overburden situated, as of the Closing
Date,  upon  the  SFPMC  Leased Property and the Hospah Owned Property, that had
accrued  and  that  were  legally  required  to  be

                                       39
<PAGE>
performed  and completed prior to the Closing Date.  SFPMC shall and does hereby
assume  all  other  accrued  and  unaccrued  Reclamation  and  Environmental
Responsibilities,  now  existing  or  arising in the future, with respect to all
Overburden  and  Stockpiles of Overburden situated, as of the Closing Date, upon
the  Hospah  Owned  Property  or the SFPMC Leased Property.  Notwithstanding the
ownership  thereof,  Hospah  shall  bear  and  assume  all  Reclamation  and
Environmental  Responsibilities  with  respect  to  Overburden  generated by its
operations subsequent to the Closing Date or placed or deposited upon the Hospah
Owned Property or the SFPMC Leased Property by Hospah, its agents or contractors
subsequent  to  the  Closing Date.  Notwithstanding the ownership thereof, SFPMC
shall  bear  and  assume all Reclamation and Environmental Responsibilities with
respect to Overburden generated by its operations subsequent to the Closing Date
or  placed  or  deposited  upon  the  Hospah  Owned Property or the SFPMC Leased
Property  by  SFPMC,  its  agents or contractors subsequent to the Closing Date.
Reclamation  and  Environmental  Responsibilities  with respect to Overburden or
Stockpiles  of  Overburden  situated  or  to  be  situated upon the Hospah Owned
Property or the SFPMC Leased Property shall transfer or be deemed transferred to
HNRC  under  the  specific circumstances and pursuant to the express provisions,
terms  and  conditions  set  forth  in  this  Agreement.

     5.2  Title  to  Overburden.  As  between  the  Parties  and  subject to any
          ---------------------
approvals of the BLM or other government agencies required under Applicable Law,
the  ownership  of Overburden situated or to be situated.  upon the Hospah Owned
Property or the SFPMC Leased Property shall be as set forth in this Section 5.2.
Ownership  of  Overburden  and Stockpiles of Overburden situated upon the Hospah
Owned  Property as of the Closing Date shall be conveyed to SFPMC at the Closing
as part of the Hospah Owned Property.  Ownership of Overburden and Stockpiles of
Overburden  situated upon the SFPMC Leased Property as of the Closing Date shall
be  retained  by  HNRC,  subject  to  SFPMC's leasehold interest under the SFPMC
Lease,  provided  that,  pursuant  to  the  provisions,  of  Section 5.1 of this
Agreement,  SFPMC  shall  assume  all  accrued  and  unaccrued  Reclamation  and
Environmental  Responsibilities  with  respect  to  such  Overburden (except for
accrued  Reclamation  and  Environmental Responsibilities legally required to be
performed  and  completed  prior  to the Closing Date).  Ownership of Overburden
placed  or  deposited  upon  the SFPMC Leased Property subsequent to the Closing
Date  shall,  as  between  the  Parties  and  subject to Applicable Law and HNRC
obtaining  all  required Licenses, be deemed transferred to HNRC on the date and
at  the  time  of  such  placement  or  deposit  upon the SFPMC Leased Property,
provided  that,  pursuant  to  the  provisions of Section 5.1 of this Agreement,
SFPMC  shall  bear and assume all Reclamation and Environmental Responsibilities
with  respect  to such Overburden.  The ownership of Overburden, as set forth in
this  Section  5.2,  shall change only pursuant to the express provisions, terms
and  conditions of this Agreement or pursuant to a written agreement executed by
each of the Parties.  Pursuant to the provisions of Sections 5.1 and 5.2 of this
Agreement,  SFPMC  shall  assume  Reclamation and Environmental Responsibilities
with respect to certain Overburden that is or will be owned by HNRC.

     5.3  Use  of  Overburden  by  SFPMC.  Subject  to  Applicable Law and SFPMC
          ------------------------------
obtaining any necessary Licenses, and to the extent, that HNRC has the right and
power  to  do  so,  HNRC  grants  unto SFPMC the right to remove Overburden from
Stockpiles  situated  upon the SFPMC Leased Property during the SFPMC Lease Term
for  use  in  connection  with  the Mesquite Mine.  Additionally, HNRC shall not
object  to  any  removal  by Hospah or SFPMC of Overburden from the Hospah Owned
Property  for  use  in  connection  with  the  Mesquite  Mine.

                                       40
<PAGE>
Each  of  Hospah  and  SFPMC  shall  retain  and/or  assume  all Reclamation and
Environmental  Responsibilities  relative  to  Overburden  that  it removes from
Stockpiles  or  otherwise uses in connection with the Mesquite Mine.  As between
the  Parties  and  to  the  extent  permitted  by  Licenses  and Applicable Law,
ownership of Overburden removed by SFPMC from Stockpiles situated upon the SFPMC
Leased  Property  for  use  in connection with the Mesquite Mine shall be deemed
transferred  to  SFPMC  upon  such  removal  of  the  Overburden from Stockpile.
SFPMC's  right  to  remove  Overburden from the SFPMC Leased Property during the
SFPMC  Lease  Term  and Hospah's and SFPMC's right to remove overburden from the
Hospah  Owned Property pursuant to this Article V for use in connection with the
Mesquite Mine, shall be superior to and take priority over all rights of HNRC to
remove  Overburden  from  such  lands  for  use  in connection with the Landfill
Project.  HNRC shall not remove Overburden from such lands for use in connection
with the Landfill Project unless, immediately following such removal, sufficient
Overburden  remains  available  to  Hospah and SFPMC to satisfy their reasonably
foreseeable  requirements  for  Overburden in connection with the Mesquite Mine.

     5.4  Prohibition  on  Sale.  Neither  SFPMC nor Hospah shall sell, lease or
          ---------------------
otherwise  transfer unto any third party any right, title or interest whatsoever
in  or to Overburden that, prior or subsequent to the Closing Date, is extracted
from  or  stockpiled,  upon either the Hospah Owned Property or the SFPMC Leased
Property,  or,  subject to the BLM's rights to sell or otherwise dispose of such
materials,  if  any,  allow  the  removal or use of Overburden by third parties.

     5.5  Stockpiling  of  Overburden  Subsequent  to Closing Date.
          --------------------------------------------------------

          A.   Stockpiling  at Sites Upon the SFPMC Leased Property.  Within the
               ----------------------------------------------------
limitations of its then current haulage fleet for the Mesquite Mine, SFPMC shall
exercise  its best efforts to stockpile all Overburden extracted or generated in
connection  with  the  operations  of  the Mesquite Mine at sites upon the SFPMC
Leased Property specified by HNRC, in its sole and absolute discretion, provided
that  such sites do not materially interfere with the operations of the Mesquite
Mine.  Whenever necessary the Parties shall discuss and determine specific sites
upon  the  SFPMC  Leased Property for the future stockpiling of Overburden.  The
Parties  shall  endeavor in good faith to agree upon mutually satisfactory sites
for  such  Stockpiles.  HNRC  shall  reimburse  to  SFPMC  any Incremental Costs
incurred  by  SFPMC  as  a result of the location of HNRC's designated Stockpile
sites.  The  Parties  shall  agree  in  advance  and in writing to the estimated
amount of such Incremental Costs per ton of Overburden to be stockpiled and such
estimated amount per ton shall conclusively be deemed the amount payable by HNRC
to  SFPMC  hereunder  (for each ton of Overburden actually stockpiled by SFPMC),
regardless  of  the  Incremental Costs per ton actually incurred by SFPMC.  Such
estimated  Incremental  Costs  per  ton  of Overburden shall serve as liquidated
damages  and  is reasonable and appropriate in view of the fact that it would be
impossible,  as  a  practical  matter,  to  determine_ with certainty the actual
Incremental  Costs  incurred  by  SFPMC.

          B.   Records  of  Origin  of  Overburden.  In  accordance  with  past
               -----------------------------------
practices  at  the  Mesquite  Mine,  Hospah and/or SFPMC shall keep and maintain
reasonably  accurate records of the site of origin (prior to extraction from the
ground)  of  all  Overburden  that, subsequent to the Closing Date, is extracted
from  or stockpiled upon the Hospah Owned Property or the SFPMC Leased Property.
Such  records  shall  be  of  sufficient  detail  and  accuracy  so  that  the

                                       41
<PAGE>
Parties  will  be  able to determine, with a reasonable degree of certainty, the
percentage  of  Overburden  in  any  particular  Stockpile  that originated from
Unpatented  Claims  and  the  percentage  of  Overburden  in that Stockpile that
originated from Fee Property.  No more than once each calendar year, HNRC shall,
at  its  sole  cost,  have  the  right  to  review  and  copy  all such records.

          C.   Rights  of  HNRC  to Move Stockpiles.  In the event that SFPMC is
               ------------------------------------
unable,  for  whatever  reason,  to stockpile Overburden at sites upon the SFPMC
Leased  Property designated by HNRC, HNRC shall have the right, at its sole cost
and in its sole and absolute discretion, to enter upon the SFPMC Leased Property
and/or  the  Hospah  Owned  Property  and to haul Overburden from any initial or
undesignated  dump  site  to  stockpile  sites  designated  by HNRC.  HNRC shall
conduct  such haulage operations so as not to materially interfere with or cause
a  Material  Adverse  Effect  upon  the  operations  of  the  Mesquite  Mine.

     5.6  Removal  of Overburden by HNRC for Use in Connection with the Landfill
          ----------------------------------------------------------------------
Project.
-------

          A.   HNRC's Right of Removal.  Subject to HNRC obtaining all necessary
               -----------------------
Licenses  and  to the extent permitted by Applicable Law, and further subject to
Hospah's  and  SFPMC's superior and priority rights to remove Overburden for use
in  connection with the Mesquite Mine pursuant to Section 5.3 of this Agreement,
HNRC  shall  have  the  right,  without charge or payment of any kind, to remove
Overburden  from Stockpiles situated upon the Hospah Owned Property or the SFPMC
Leased  Property for use in connection with the Landfill Project.  The rights of
HNRC  set  forth  in  the  preceding  sentence  shall  apply with respect to all
Overburden  situated  in  stockpiles upon the Hospah Owned Property or the SFPMC
Leased  Property,  regardless of whether the Overburden was extracted, generated
or  stockpiled  prior  or  subsequent  to  the Closing Date.  In the event that,
pursuant  to  this Section 5.6, HNRC removes Overburden from Stockpiles situated
upon  the  Hospah  Owned Property, ownership of the Overburden shall, as between
the  Parties,  and  subject  to  Applicable  Law and HNRC obtaining any required
Licenses,  be  deemed  transferred to HNRC upon removal thereof by HNRC from the
Hospah  Owned  Property.  Notwithstanding any provision of this Agreement to the
contrary,  ownership  of  Overburden originally extracted from Unpatented Claims
shall  not be deemed transferred to HNRC unless and until HNRC obtains necessary
approvals  for  such  transfer  from the BLM, if any such approvals are required
under  Applicable  Law.  HNRC's  right  to  remove  Overburden from Hospah Owned
Property  shall terminate on a date 86 years after the Closing Date, except with
respect to Overburden purchased by HNRC pursuant to the Purchase Option.

          B.   Assumption of Obligations by HNRC.  HNRC shall assume all accrued
               ---------------------------------
and  unaccrued  Reclamation  and  Environmental Responsibilities with respect to
Overburden that it removes from Stockpiles situated upon either the SFPMC Leased
Property  or  the  Hospah Owned Property for use as cover in connection with the
Landfill Project.  Additionally, HNRC shall reimburse to Hospah and/or SFPMC any
Incremental  Costs  that  those  Parties  incur as a result of HNRC's removal of
Overburden.

          C.   Covenant  of  Non-Interference.  In  the  event that HNRC removes
               ------------------------------
Overburden from Stockpiles situated upon either the Hospah Owned Property or the
SFPMC  Leased  Property,  for  use in connection with the Landfill Project, HNRC
shall  conduct  such

                                       42
<PAGE>
removal  operations  so  as not to materially interfere with or cause a Material
Adverse  Effect  upon  the  operations  of  the  Mesquite  Mine.

                                   ARTICLE VI

                                      CLAY
                                      ----

     6.1  Joint  Use  of  Clay  Reserves.  There  are certain Stockpiles of Clay
          ------------------------------
present upon the SFPMC Leased Property and the Hospah Owned Property, as well as
unextracted  deposits  of  Clay  in the ground in or underlying the Hospah Owned
Property  (collectively,  "Clay  Reserves").  The  Parties  anticipate that HNRC
shall  require  a  certain  amount  of this Clay in connection with the Landfill
Project  and  that Hospah and SFPMC may require a certain amount of this Clay in
connection  with  its or their gold processing and reclamation operations at the
Mesquite  Mine.  Pursuant  to  the  provisions  of  this Article VI, the Parties
covenant  to  cooperate reasonably with each other so as to facilitate the joint
use  of  such  Clay  Reserves.

     6.2  Hospah's  First  Call  on Clay.  As between the Parties and subject to
          ------------------------------
Applicable  Law  and Hospah and/or SFPMC obtaining any required Licenses, Hospah
(as  to  the  Hospah  Assets)  and  SFPMC  (as to the SFPMC Assets) shall have a
superior  and  priority  right  to  remove  and  use  Clay  Reserves for its own
purposes.  This  right shall be referred to in this Agreement as "Hospah's First
Call  on  Clay.  Hospah's First Call on Clay shall be limited to the quantity of
Clay  that  Hospah  and/or  SFPMC  reasonably  anticipate  they  will require in
connection with their gold processing operations at the Mesquite Mine.  Provided
that  there  are sufficient overall Clay Reserves to satisfy Hospah's First Call
on  Clay,  neither Hospah nor SFPMC shall exercise Hospah's First Gallon Clay so
as  to  prevent  HNRC  from  removing  any  specific  Clay  Reserves  for use in
connection  with  the  Landfill  Project,  unless  Hospah or SFPMC in good faith
intends,  within  the  following  12 month period, to remove those specific Clay
Reserves  for its own use.  As between the Parties and subject to Applicable Law
and  Hospah  and/or SFPMC obtaining any required Licenses, the ownership of Clay
Reserves  removed  by  SFPMC from Stockpiles situated or to be situated upon the
SFPMC  Leased Property, for use in connection with gold processing operations at
the  Mesquite  Mine,  shall be deemed transferred unto SFPMC upon the removal by
SFPMC of such Clay from Stockpile.  Nothing in this provision shall be construed
as  granting  unto  Hospah any right to extract or remove Clay Reserves from the
SFPMC  Leased  Property.

     6.3  Prohibition  on  Sale  of  Clay  to Third Parties.  Neither Hospah nor
          -------------------------------------------------
SFPMC  shall  sell,  lease or otherwise transfer unto any third party any right,
title  or  interest  whatsoever in or to Clay Reserves, or, subject to the BLM's
right,  if any, to sell or otherwise dispose of such material, allow the removal
or  use  of  Clay  by  third  parties.

     6.4  Assumption  of  Reclamation  and Environmental Responsibilities.  HNRC
          ---------------------------------------------------------------
shall  retain  all Reclamation and Environmental Responsibilities (if any), with
respect  to  Clay  and Stockpiles of Clay situated, as of the Closing Date, upon
the  Hospah  Owned  Property  or the SFPMC Leased Property, that had accrued and
that  were  legally  required to be performed and completed prior to the Closing
Date.  Hospah  and  SFPMC  shall  and  do  hereby  assume  all other accrued and
unaccrued  Reclamation  and  Environmental  Responsibilities,  now  existing  or
arising in the future, with respect to all Clay and Stockpiles of Clay situated,
as  of  the  Closing

                                       43
<PAGE>
Date,  upon  the  Hospah  Owned  Property  or  the  SFPMC  Leased  Property.
Notwithstanding  the  ownership  thereof,  Hospah  shall  bear  and  assume  all
Reclamation  and  Environmental Responsibilities with respect to Clay, generated
or  extracted  by  its  operations  subsequent  to the Closing Date or placed or
deposited upon the Hospah Owned Property or the SFPMC Leased Property by Hospah,
its  agents  or contractors subsequent to the Closing Date.  Notwithstanding the
ownership thereof, SFPMC shall bear and assume all Reclamation and Environmental
Responsibilities  with  respect to Clay generated or extracted by its operations
subsequent  to  the  Closing  Date  or placed or deposited upon the Hospah Owned
Property  or  the  SFPMC  Leased  Property  by  SFPMC, its agents or contractors
subsequent  to the Closing Date.  Reclamation and Environmental Responsibilities
with  respect  to Clay or Stockpiles of Clay situated or to be situated upon the
Hospah  Owned  Property or the SFPMC Leased Property shall transfer or be deemed
transferred to HNRC under the specific circumstances and pursuant to the express
provisions,  terms  and  conditions  set  forth  in  this  Agreement.

     6.5  Title  to  Clay  Reserves.  As  between the Parties and subject to any
          -------------------------
approvals of the BLM or other government agencies required under Applicable Law,
the  ownership  of  Clay  Reserves  shall  be  as set forth in this Section 6.5.
Ownership  of  Clay  Reserves  situated upon the Hospah Owned Property as of the
Closing  Date shall be conveyed to SFPMC and/or Hospah at the Closing as part of
the  Hospah Owned Property, provided that, pursuant to the provisions of Section
6.4 of this Agreement, SFPMC shall assume all accrued and unaccrued Reclamation.
and Environmental Responsibilities with respect to such Clay Reserves (exclusive
of accrued Reclamation and Environmental Responsibilities legally required to be
performed  and completed prior to the Closing Date).  Ownership of Clay Reserves
situated upon the SFPMC Leased Property as of the Closing Date shall be retained
by  HNRC,  subject to SFPMC's leasehold interest under the SFPMC Lease, provided
that,  pursuant  to the provisions of Section 6.4 of this Agreement, SFPMC shall
assume  all accrued and unaccrued Reclamation and Environmental Responsibilities
with  respect  to  such  Clay  Reserves  (exclusive  of  accrued Reclamation and
Environmental  Responsibilities  legally  required to be performed and completed
prior  to  the  Closing  Date).,  Ownership of Clay placed or deposited upon the
SFPMC  Leased  Property  subsequent  to  the  Closing Date shall, as between the
Parties  and subject to Applicable Law and HNRC obtaining any required Licenses,
be  deemed  transferred to HNRC on the date and at the time of such placement or
deposit  upon  the  SFPMC  Leased  Property,  provided  that,  pursuant  to thee
provisions  of  Section  6.4  of this Agreement, SFPMC shall bear and assume all
Reclamation  and  Environmental Responsibilities with respect to such Clay.  The
ownership  of Clay Reserves, as set forth in this Section 6.5, shall change only
pursuant  to  the  express provisions, terms and conditions of this Agreement or
pursuant  to  a  written agreement executed by each of the Parties.  Pursuant to
the  provisions  of Sections 6.4 and 6.5 of this Agreement, Hospah and/or SFPMC,
to  the  extent  of  their  respective  interests,  shall assume Reclamation and
Environmental Responsibilities with respect to certain Clay Reserves that are or
will  be  owned  by  HNRC.

     6.6  Stockpiling  of Clay by Hospah and SFPMC.  Clay extracted by Hospah or
          ----------------------------------------
SFPMC  from the Hospah Owned Property or by SFPMC from the SFPMC Leased Property
and  not  removed  and  used  immediately in connection with the gold processing
facilities  and  reclamation  requirements  at  the  Mesquite  Mine,  shall  be
identified, separated by quality and stockpiled by Hospah or SFPMC at sites upon
the SFPMC Leased Property or the Hospah Owned Property designated by HNRC.  HNRC
shall  provide  to  Hospah  or  SFPMC  a  written

                                       44
<PAGE>
notice  setting forth procedures and practices to be followed in connection with
the identification and segregation of Clay, as well as the specific sites or the
SFPMC  Leased  Property  upon which Clay is to be stockpiled.  In the event that
Hospah  objects to any aspect of such notice, it shall provide to HNRC a written
notice  setting  forth  its  preferred  practices,  procedures and locations for
stockpiling.  Any disagreements between the Parties with respect to such matters
shall be resolved in favor of HNRC, provided that HNRC shall reimburse to Hospah
and  SFPMC  all  Incremental  Costs incurred by those Parties as a result of the
implementation  of  HNRC's  favored  practices,  procedures  and  locations  for
Stockpiles, and provided further that Neither Hospah nor SFPMC shall be required
to  stockpile  Clay  at  sites  designated  by  HNRC if the hauling of Clay such
distances  exceeds the capabilities of Hospah's and SFPMC's then current haulage
fleet  for  the  Mesquite  Mine (in which case HNRC shall have the right, at its
sole  election  and  cost, to haul the Clay from the Stockpile Sites employed by
Hospah  or SFPMC to.  the Stockpile sites designated by HNRC) .  Notwithstanding
the  foregoing,  HNRC  shall not be required to reimburse to Hospah or SFPMC its
Incremental Costs with respect to the first Clay so stockpiled, up to a quantity
equivalent  to the amount of Clay that Hospah and/or SFPMC reasonably anticipate
they  will require in connection with gold processing facilities and reclamation
requirements at the, Mesquite Mine.  Unless the 'specific Clay Reserves at issue
have  been  claimed  and  reserved by Hospah or SFPMC pursuant to Hospah's First
Call  on Clay, all identification, segregation and stockpiling of Clay by Hospah
or  SFPMC  shall  be  subject  to  the  direction/participation by HNRC's staff.

     6.7  Removal  of  Clay  by  HNRC.
          ---------------------------

          A.   Removal  and  Mining  of  Clay  by  HNRC.
               ----------------------------------------

               (1)  Removal  from  Hospah Owned Property.  Subject to Applicable
                    ------------------------------------
Law,  Hospah's  First  Call on Clay and HNRC obtaining any necessary Licenses or
BLM  approvals HNRC shall have the right, without charge or payment of any kind,
at any time and from time to time within 86 years following the Closing Date, to
extract  and  to  remove,  for use in connection with the Landfill Project:  (i)
Clay  Reserves  situated  in  deposits  in  the  ground  underlying Fee Property
encompassed within the Hospah Owned Property, and (ii) Clay Reserves situated or
to  be  situated  in  Stockpiles  upon  either Unpatented Claims or Fee Property
encompassed  within  the  Hospah Owned Property, provided that the Clay at issue
was  originally  mined or extracted from Fee Property.  For a period of 86 years
following  the  Closing Date, and subject to Applicable Law, Hospah's First Call
on  Clay  and  HNRC  obtaining  any necessary Licenses or BLM approvals, neither
SFPMC  nor Hospah shall object to HNRC's extraction and removal, at any time and
from  time  to  time,  for use in connection with the Landfill Project, of:  (i)
Clay  Reserves  situated  in deposits in the ground underlying Unpatented Claims
encompassed  within  the Hospah Owned Property, or (ii) Clay Reserves originally
mined  or  extracted  from  Unpatented  Claims and situated or to be situated in
Stockpiles  upon  either.  Unpatented  Claims or Fee Property encompassed within
the  Hospah  Owned  Property.

               (2)  Removal  from  SFPMC Leased Property.  Subject to Applicable
                    ------------------------------------
Law,  Hospah's  First  Call on Clay and HNRC obtaining any necessary Licenses or
BLM  approvals, HNRC shall have the right, without charge or payment of any kind
and  at  any  time  and  from time to time, to extract and to remove, for use in
connection  with  the  Landfill  Project:  (i)  Clay situated in deposits in the
ground  underlying  Fee  Property  encompassed  within  the

                                       45
<PAGE>
SFPMC  Leased  Property,  and  (ii)  Clay Reserves situated or to be situated in
Stockpiles  upon either Unpatented Claims or Fee Property encompassed within the
SFPMC  Leased  Property, provided that the Clay at issue was originally mined or
extracted  from Fee Property.  Subject to Applicable Law, Hospah's First Call on
Clay  and HNRC obtaining any necessary Licenses or BLM approvals, neither SFPMC,
nor  Hospah  shall object to HNRC's extraction and removal, at any time and from
time  to  time,  for  use in connection with the Landfill Project, of:  (i) Clay
Reserves  situated  in  deposits  in  the  ground  underlying  Unpatented Claims
encompassed  within  the SFPMC Leased Property, or (ii) Clay Reserves originally
mined  or  extracted  from  Unpatented  Claims and situated or to be situated in
Stockpiles  either upon Unpatented Claims or Fee Property encompassed within the
SFPMC  Leased  Property.

               (3)  Transfer of Ownership. As between the Parties and subject to
                    ---------------------
Applicable Law and necessary BLM approvals, ownership of Clay Reserves that HNRC
removes  from either the Hospah Owned Property or the SFPMC Leased Property, for
use  in  connection  with the Landfill Project, shall be deemed transferred unto
HNRC upon such removal.  HNRC shall assume all accrued and unaccrued Reclamation
and Environmental Responsibilities with respect to Clay Reserves that it removes
from  the  Hospah  Owned Property or the SFPMC Leased Property, pursuant to this
Section  6.7,  for  use  in  connection  with  the  Landfill  Project.

               (4)  Limitation on Removal Rights.  Notwithstanding any provision
                    ----------------------------
of  this Agreement to the contrary, HNRC shall not remove Clay Reserves from the
Hospah Owned Property or the SFPMC Leased Property unless, immediately following
such  removal,  there will remain sufficient Clay Reserves in or upon the Hospah
Owned  Property and/or the SFPMC Leased Property to satisfy Hospah's and SFPMC's
minimum  requirements  for  Clay  needed  in  the construction of then currently
planned  leach  pads  or other uses consistent with operating the Mesquite Mine,
including,  but  not  limited  to  reclamation  responsibilities.

          B.   Disclaimer  and Licenses.  The provisions of Section 9.3 and 9.10
               ------------------------
of this Agreement, pertaining to disclaimers and Licenses, are applicable to the
provisions  of  this  Article  VI  and  the use and ownership of Clay hereunder.

          C.   Covenants  of  Non-Interference.  In  the  event that HNRC enters
               -------------------------------
upon  the  SFPMC  Leased  Property  or the Hospah Owned Property for purposes of
mining  or removing Clay Reserves pursuant to the provisions of this Article VI,
HNRC  covenants  that it shall not materially interfere with or cause a Material
Adverse  Effect  upon  the  operations  of  the  Mesquite  Mine.

          D.   Solicitation of Bid from Hospah and SFPMC. In the event that HNRC
               -----------------------------------------
intends,  pursuant  to the provisions of this Article VI, to mine any previously
unextracted  Clay  Reserves,  HNRC shall seek bids from Hospah and SFPMC for the
contract  mining  of  such  Clay.  HNRC  shall  be under no obligation to accept
Hospah's  and  SFPMC's bid.  HNRC shall have the right, at its sole and absolute
discretion, to elect to conduct such mining operations itself or through a third
party  contractor  of  its  selection,  regardless  of  whether  the bid of such
contractor is higher, lower or the same as Hospah's or SFPMC's bid.

                                       46
<PAGE>
          E.   Removal  of  Clay  for  Testing  Purposes.  Notwithstanding  any
               -----------------------------------------
provision  of  this Agreement to the contrary, HNRC shall have the right, at any
time  and  from  time  to  time,  to enter upon the SFPMC Leased Property or the
Hospah  Owned  Property  and  to  remove Clay from any Clay Reserves for testing
purposes  provided  that HNRC shall not materially interfere with the operations
of  the  Mesquite  Mine.

          F.   Prohibition  on Excavations in Active Cold Pits.  Notwithstanding
               -----------------------------------------------
any provision of this Agreement to the contrary, HNRC shall not mine Clay from a
pit upon either the Hospah Owned Property or the SFPMC Leased Property, in which
Hospah or SFPMC is actively conducting gold mining operations, without the prior
written consent of the Party conducting such operations, which consent shall not
unreasonably  be  withheld.

     6.8  Records  of  Clay Origin.  In  accordance  with  past practices at the
          ------------------------
Mesquite  Mine,  Hospah and/or SFPMC shall keep and maintain reasonably accurate
records  of  the site of origin (prior to the extraction from the ground) of all
Clay that, subsequent to the Closing Date, is mined from or stockpiled upon, the
Hospah  Owned Property or the SFPMC Leased Property.  Such records shall be kept
in accordance with the standards and procedures, for the purposes and subject to
the  rights  of  HNRC set forth and described in Section 5.5 B of this Agreement
(relative  to  record keeping with respect to the site of origin of Overburden).

                                   ARTICLE VII

                            SPENT ORE AND LEACH PADS
                            ------------------------

     7.1  Ownership  and  Reclamation  Responsibilities.  Pursuant  to the Asset
          ---------------------------------------------
Exchange  Agreement  and  Section  3.1 of this Agreement, all Ore, Spent Ore and
associated  materials  situated upon the leach pads on the SFPMC Leased Property
as of the Closing Date shall be conveyed to SFPMC at the Closing.  However, HNRC
shall  retain  ownership  of the pads and real property on which such Ore, Spent
Ore  and associated materials are located, subject to SFPMC's leasehold interest
under  the SFPMC Lease.  As between the Parties, ownership of all Ore, Spent Ore
and associated materials placed upon the leach pads on the SFPMC Leased Property
subsequent  to the Closing Date shall reside exclusively in SFPMC and/or Hospah.
Ownership  of  Ore,  Spent Ore and associated materials located or to be located
upon  the leach pads on the SFPMC Leased Property shall be deemed transferred to
HNRC  only  in the specific circumstances and pursuant to the express provisions
set  forth  in  this  Article  VII.  HNRC  shall  retain  all  Reclamation  and
Environmental  Responsibilities  (if  any),  with  respect to Ore, Spent Ore and
associated  materials  situated,  as of the Closing Date, upon the leach pads on
the SFPMC Leased Property, that had accrued and that were legally required to be
performed  and completed prior to the Closing Date.  SFPMC shall and does hereby
assume  all  other  accrued  and  unaccrued  Reclamation  and  Environmental
Responsibilities,  now  existing  or arising in the future, with respect to Ore,
Spent  Ore  and  associated materials situated, as of the Closing Date, upon the
leach  pads  on the SFPMC Leased Property.  SFPMC shall also bear and assume all
Reclamation  and  Environmental  Responsibilities with respect to Ore, Spent Ore
and  associated  materials  placed  upon the SFPMC Leased Property by SFPMC, its
agents  or  contractors  subsequent  to  the  Closing Date.  Notwithstanding the
ownership  of  such  assets, Reclamation and Environmental Responsibilities with
respect  to  Ore, Spent Ore and associated materials shall be deemed transferred
to  HNRC  only  in  the  specific  circumstances  and  pursuant  to

                                       47
<PAGE>
the express provisions of this Article VII.  SFPMC shall, upon a written request
from  HNRC to the Mesquite Mine Manager and the Vice President of Operations for
SFPMC, confirm whether a particular, portion of Ore on a leach pad or elsewhere,
is then considered by SFPMC and Hospah to be Spent Ore.  If SFPMC does not reply
to  the  request  within  45  days,  the  Ore  shall  be deemed to be Spent Ore.

     7.2  Operation  of  Leach  Pads.
          --------------------------

          A.   Location  of  Pads.  In  the  event  that  any new leach pads are
               ------------------
required  in  connection  with  the  operation of the Mesquite Mine, SFPMC shall
construct  such new leach pads, if reasonably practicable, upon the SFPMC Leased
Property.  If  necessary  to  the  efficient  treatment of Ore, Hospah and SFPMC
shall  have  the  right  to construct and operate new leach pads upon the Hospah
Owned  Property.  Similarly,  in  the  event  that  SFPMC  or  Hospah desires to
stockpile  Ore on property not covered by leach pads, SFPMC shall stockpile such
Ore,  to  the  extent  reasonably  practicable,  upon the SFPMC Leased Property.
However,  if  necessary  to the efficient treatment of Ores, Hospah and/or SFPMC
may establish such Stockpiles of Ore upon the Hospah Owned Property.

          B.   Records  of Ore Origin.  In accordance with past practices at the
               ----------------------
Mesquite,  Mine, Hospah and/or SFPMC shall keep and maintain reasonably accurate
records  of  the site of origin (prior to extraction from the ground) of all Ore
that,  subsequent  to  the  Closing  Date,  is mined from or stockpiled upon the
Hospah  Owned Property or the SFPMC Leased Property.  Such records shall be kept
in accordance with the standards and procedures, for the purposes and subject to
the  rights  of  HNRC set forth and described in Section 5.5 B of this Agreement
(relative  to  record keeping with respect to the site of origin of Overburden).

     7.3  Rights and Obligations of the Parties Following Cessation of Leaching.
          ---------------------------------------------------------------------

          A.   Applicable  Law.  Within  a  reasonable  period of time following
               ---------------
cessation  of  leaching  operations  upon  any  particular  leach  pad,  and  in
accordance with a schedule that benefits gold recoveries and does not, adversely
affect ongoing operations of the Mesquite Mine, SFPMC shall rinse and neutralize
the Spent Ore upon the pad at issue in accordance with the terms, conditions and
requirements  of applicable Licenses and Applicable Law.  Upon completion of all
required rinsing and neutralization, SFPMC shall provide to HNRC SFPMC's written
certification,  certifying that the leach pad has been rinsed and neutralized in
full  compliance with all requirements of applicable Licenses and Applicable Law
(a  "Leach  Pad Certification").  If agreed upon in advance by the Parties, HNRC
or  its  agents  may perform any or all rinsing and neutralization operations on
behalf  of  SFPMC.  In  that  event,  SFPMC shall, after receipt of a sufficient
written  invoice,  reimburse  to HNRC all costs and expenses incurred by HNRC in
rinsing  and neutralization of the Spent Ore in accordance with the requirements
of  applicable  Licenses  and  Applicable  Law  (exclusive  of Incremental Costs
incurred by HNRC as a result of any election by HNRC to rinse and neutralize the
Spent  Ore  to  a standard in excess of that required by applicable Licenses and
Applicable  Law),  In  the event that HNRC or its agents perform all rinsing and
neutralization  functions  with respect to a particular leach pad, HNRC shall be
required  to provide to SFPMC HNRC's Leach Pad Certification for that leach pad.

                                       48
<PAGE>
          B.  Surrender  of  the  Leach  Pad  from  the  SFPMC Lease.  Following
              ------------------------------------------------------
receipt of a Leach Pad Certification, HNRC, its agents and representatives shall
have  the  right  to  enter  upon  the  SFPMC  Leased  Property  for purposes of
inspecting and testing the leach pad and Spent Ore at issue.  In connection with
such  inspection,  HNRC  shall have the right to remove samples of the Spent Ore
for  off-site  testing.  HNRC shall also have the right, but not the obligation,
to  perform  testing  of the Spent Ore on-site.  In the event that HNRC confirms
that  the facts and statements contained in the Leach Pad Certification are true
and  correct  in  all  respects, and that SFPMC has complied with all conditions
prerequisite  to  the  issuance of the Leach Pad Certification, the leach pad at
issue  shall  be  surrendered  from the SFPMC Lease and the Spent Ore on the pad
shall be conveyed to HNRC.  Hospah and SFPMC shall execute and deliver to HNRC a
quitclaim  deed  and  bill  of  sale,  conveying,  unto HNRC all of Hospah's and
SFPMC's  right,  title  and  interest in and to the leach pad at issue, the real
property  on  which  the  leach  pad  is  situated  and  all Spent Ore and other
materials  situated  upon  the  leach pad.  Thereafter, the SFPMC Lease shall be
deemed  terminated  as  to  the  leach  pad  and  real  property  at  issue.
Notwithstanding  the execution and delivery of the quitclaim deed or the bill of
sale  described  above,  SFPMC  shall  not  be  relieved of or released from any
Reclamation  and  Environmental  Responsibilities with respect to the leach pad,
real  property,  Spent  Ore or other materials at issue.  HNRC shall assume such
Reclamation  and Environmental Responsibilities only under the circumstances and
subject  to the terms and conditions expressly set forth in Section 7.3D of this
Agreement.

          C.  Right  of  HNRC to Request Further Rinsing and Neutralization.  At
              -------------------------------------------------------------
any  time  and from time to time following cessation of leaching operations upon
any particular leach pad, HNRC may provide to SFPMC a written request that SFPMC
conduct  rinsing  and  neutralization  of  the  Spent Ore on the pad at issue in
excess  of  or in addition to the rinsing and neutralization that is required by
applicable  Licenses  and  Applicable  Law.  Such  requested  rinsing  and
neutralization  of  Spent  Ore  in  addition to or in excess of that required by
applicable  Licenses  or  Applicable  Law  shall  be  referred to hereinafter as
"supplemental  rinsing,  and  neutralization."  HNRC  may  request  supplemental
rinsing  and  neutralization  either  prior  or subsequent to the conduct of the
rinsing  and,  neutralization operations described above in Section 7.3 A or the
surrender  of the leach pad at issue from the SFPMC Lease.  HNRC's request shall
specify  the particular methods, procedures or standards that HNRC desires to be
applied  or  followed  in  connection  with  the  supplemental  rinsing  and
neutralization.  The  supplemental  rinsing  and neutralization of Spent Ore may
benefit  SFPMC and/or Hospah through greater gold recoveries.  In the event that
SFPMC agrees to conduct the supplemental rinsing and neutralization requested by
HNRC,  HNRC  shall reimburse to SFPMC, upon receipt of a sufficient invoice, all
Incremental  Costs  incurred by SFPMC as a result thereof.  In other words, HNRC
shall  reimburse to SFPMC the costs and expenses incurred by SFPMC in conducting
supplemental  rinsing  and  neutralization requested by HNRC, to the extent that
such  costs  and  expenses  exceed  those  that SFPMC would have incurred had it
merely  rinsed and neutralized the Spent Ore in accordance with the requirements
of  applicable  Licenses and Applicable Law.  The value of any gold recovered by
SFPMC  as  a  result  of  the conduct of supplemental rinsing and neutralization
shall  constitute  an  offset  against,  and  shall  accordingly  reduce,  the
Incremental  Costs  reimbursable  to  SFPMC.  Within  45  days  following HNRC's
written request for supplemental rinsing and neutralization, SFPMC shall provide
to  HNRC  a  written  notice  either  agreeing  or  declining  to  perform  the
supplemental  rinsing and neutralization requested by HNRC.  If SFPMC shall fail
to  deliver  such  notice  within  such  time,

                                       49
<PAGE>
it  shall  be deemed to have declined to undertake such activities.  SFPMC shall
agree to perform the supplemental rinsing and neutralization if it possesses the
necessary  capabilities  and  if  doing  so  will not interfere with or create a
Material  Adverse  Effect  upon the ongoing operations of the Mesquite Mine.  In
the  event  that  SFPMC  is  unable  to  perform  the  supplemental  rinsing and
neutralization  requested  by  HNRC,  HNRC  shall  have  the  right, at its sole
discretion  and  cost,  to  perform such supplemental rinsing and neutralization
itself  or  through an agent or contractor of its selection, in which event HNRC
shall be entitled to retain, for its own account, all gold recovered as a result
of  the  supplemental  rinsing  and  neutralization.

          D.   Rights  of  HNRC  to Remove Spent Ore.  Subject to Applicable Law
               -------------------------------------
and  HNRC  obtaining any required Licenses or BLM approvals, HNRC shall have the
right,  at  any time and from time to time, and at its sole discretion and cost,
to  remove  from the leach pads for use in connection with the Landfill Project,
Spent Ore that has been rinsed, certified and conveyed by SFPMC to HNRC pursuant
to  the  provisions  of  this  Section  7.3.  HNRC  shall assume Reclamation and
Environmental Responsibilities only with respect to.  Spent Ore that it actually
removes  from  the  leach  pads for use in connection with the Landfill Project.
Upon  receipt  of a sufficient invoice from SFPMC, HNRC shall reimburse to SFPMC
any  Incremental  Costs that SFPMC incurs as a result of HNRC's removal of Spent
Ore  from  the  leach  pads.  HNRC  shall  assume  Reclamation and Environmental
Responsibilities  with  respect  to  the leach pads and associated real property
only  in  the event and to the extent that such leach pads and real property are
actually  occupied  by  HNRC  and incorporated by construction into the Landfill
Project.

     7.4  Spent  Ore  Situated  Upon  the  Hospah  Owned  Property.  Within  a
          --------------------------------------------------------
reasonable  period  of  time  following  the  cessation  of  leaching  or  other
processing,  operations with respect to Spent Ore situated upon the Hospah Owned
Property  (whether  situated  upon leach pads or otherwise), Hospah and/or SFPMC
shall  rinse  and  neutralize  the  Spent  Ore  at  issue in accordance with the
procedures,  requirements  and  provisions  set  forth  in  Section  7.3 of this
Agreement  (including  without  limitation provisions pertaining to the rinsing,
neutralization,  inspection, testing, certification and supplemental rinsing and
neutralization  of  Spent  Ore),  provided  that title to the Spent Ore at issue
shall  be  conveyed  to HNRC only in the circumstances and pursuant to the terms
and conditions set forth in this Section 7 4.  HNRC shall have the right, at its
sole  and absolute discretion and without charge or payment of any kind to SFPMC
or  to  Hospah, at any time and from time to time prior to a date 86 years after
the  Closing  Date, to enter upon the Hospah Owned Property and to remove all or
any  portion  of  the  Spent  Ore  situated  thereon  that  has  been rinsed and
neutralized  in  accordance with the provisions of this Section 7.4.  HNRC shall
assume  Reclamation and Environmental Responsibilities only with respect to such
Spent Ore that HNRC actually removes from the Hospah Owned Property.  Hospah (as
to  Spent  Ore  remaining  upon  the  Hospah  Assets) and SFPMC (as to Spent Ore
remaining  upon the SFPMC Assets) shall retain all Reclamation and Environmental
Responsibilities  with  respect  to  all  other  Spent  Ore  remaining  upon the
Hospah-Owned Property.  HNRC shall not be deemed to have assumed any Reclamation
and  Environmental Responsibilities with respect to the leach pads or other real
property  encompassed within the Hospah Owned Property upon which such Spent Ore
was  situated  prior  to  removal thereof by HNRC.  Upon receipt of a sufficient
invoice,  HNRC  shall  reimburse  to Hospah and SFPMC any Incremental Costs that
such  Parties  incurs as a result of HNRC's removal of Spent Ore from the Hospah
Owned  Property  pursuant  to  this  Section  7.4.  Title  to

                                       50
<PAGE>
such Spent Ore shall pass to HNRC only upon the removal thereof by HNRC from the
Hospah  Owned  Property  pursuant to the provisions of this Section 7.4 upon the
acquisition of such Spent Ore pursuant to the provisions of Section 3.7 of this,
Agreement  (following  exercise  of  HNRC's  Purchase  Option).

     7.5  Rights to Terminate SFPMC Lease as to Leach Pads.  Notwithstanding any
          ------------------------------------------------
provision  of  this Agreement to the contrary, HNRC shall have the right, at any
time and from time to time and in its sole and absolute discretion, to terminate
the  SFPMC Lease as to any leach pad and the real property associated therewith,
by  providing  to  SFPMC reasonable advance written notice of termination (which
notice shall set forth the effective date of the termination), provided that the
effective  date  of termination is:  (i) subsequent to the Primary Term, or (ii)
after  Ore  placed on the leach pad has reached design load capacity and further
leaching  thereof is no longer economic, or (iii) more than five years following
cessation of regular applications of solution reagent for leaching purposes upon
the  leach  pad.  In  the event of such a termination, HNRC shall pay unto SFPMC
any damages that SFPMC incurs in connection with the loss of prospective profits
from  recoverable  gold  left  on  thee  pad.  The  calculation  of such loss of
prospective  profits  shall  be  based  upon:  (i)  all  reasonably  anticipated
operating,  processing,  treatment, storage, transportation, smelting, refining,
and  related  or  incidental  costs, (ii) a good faith estimate of the timing of
anticipated processing operations and gold recovery; (iii) a reasonable estimate
as  to  the  value  of contained and recoverable gold left, on the pad; and (iv)
application of a reasonable discount rate to determine the present value of both
operating  costs  and  revenues from recovered gold.  The value of the contained
and recoverable gold left on the pad shall conclusively be determined based upon
the  final quotation for gold on the London Metal Exchange (commonly referred to
as  the  "second  London  fixing," the "London fixing p.m." or the "final London
quote")  on the first day on which the London Metal Exchange is open for trading
following  the  date  of  HNRC's written notice of termination, as such price is
published  by  Metals  Week,  the  Wall  Street  Journal or other publication of
               ------------        ---------------------
comparable  reliability.  If  trading  on  the  London  Metal  Exchange shall be
discontinued, the applicable spot price of gold shall be determined based upon a
comparable quotation, reasonably acceptable to both Parties.  In the event that,
pursuant  to the provisions of this Section 7.5, HNRC terminates the SFPMC Lease
with  respect to a leach pad not loaded to capacity and upon which SFPMC desires
to  load  and  process  additional  Ore,  as  soon  as practicable following the
provision  of  HNRC's  written  notice  of termination, SFPMC shall commence and
thereafter  diligently proceed with the construction, and commissioning of a new
leach  pad.  In that case, HNRC shall also reimburse unto SFPMC, upon receipt of
a  sufficient  invoice,  all  Incremental  Costs,  if  any, incurred by SFPMC in
connection  with  the  construction  and  operation of the new leach pad (or the
portion  thereof  needed to treat a quantity of Ore equivalent to the unused Ore
capacity  of  the  terminated  leach  pad),  including  without  limitation  any
Incremental  Costs  relating  to  delays in operations in the event that the new
leach  pad  is  not ready for Ore loading at the time that SFPMC is required (by
HNRC's termination notice) to cease the loading of Ore upon the terminated leach
pad.  Upon  termination  of the SFPMC Lease with respect to a leach pad pursuant
to  the  provisions  of  this  Section 7.5, SFPMC shall rinse and neutralize the
Spent  Ore  upon  the leach pad in accordance with the procedures and provisions
set  forth  in Section 7.3 of this Agreement.  The rights and obligations of the
Parties  with  respect to the rinsing and neutralization of such Spent Ore shall
be  the  same  as those set forth in Section 7.3 of this Agreement.  Following a
partial  termination  of  the  SFPMC  Lease pursuant to this Section 7.5, SFPMC,
shall  execute  and  deliver  unto  HNRC  a  quitclaim deed and bill of sale, in

                                       51
<PAGE>
form  and substance .reasonably satisfactory to HNRC, conveying and transferring
unto  HNRC  all of SFPMC's right, title and interest in and to the leach pad and
associated real property at issue and all Spent Ore and other materials situated
thereon.  Notwithstanding  such  conveyance,  SFPMC  shall not be relieved of or
released from any Reclamation and Environmental Responsibilities with respect to
the Spent Ore, material, leach pad or real property at issue.  HNRC shall assume
Reclamation  and  Environmental  Responsibilities only with respect to Spent Ore
that  HNRC  actually removes from the leach pads.  HNRC shall assume Reclamation
and Environmental Responsibilities with respect to the leach pads and associated
real  property, at issue only if, and to the extent, that HNRC occupies the real
property  and  incorporates it by actual construction into the Landfill Project.

     7.6  Prohibition  on  Transfers.  Except  as  expressly  set  forth in this
          --------------------------
Agreement  to the contrary, neither Hospah nor SFPMC shall transfer to any third
party  any  right,  title  or  interest  in or to any Spent Ore located or to be
located  upon either the Hospah Owned Property or the SFPMC Leased Property, or,
subject  to  BLM's right, if any, to sell or otherwise dispose of such material,
allow  the  removal  or  use  of  such  Spent  Ore  by  third  parties.

                                  ARTICLE VIII

                      OPERATION AND MAINTENANCE OF FENCING
                      ------------------------------------
          MONITORING FACILITIES AND SURFACE RUNOFF DRAINAGE FACILITIES
          ------------------------------------------------------------

     8.1  Fencing.  Pursuant to the Asset Exchange Agreement and Articles II and
          -------
III  of  this Agreement, HNRC has conveyed unto Hospah and/or SFPMC ownership of
all  mine fencing situated upon the Hospah Owned Property as of the Closing Date
and  has  leased  unto  SFPMC  all  mine  fencing situated upon the SFPMC Leased
Property  as  of  the  Closing  Date  During  the  SFPMC Lease Term, SFPMC shall
maintain  and  repair  all mine fencing situated upon the SFPMC Leased Property.
During  the  Option  Period, Hospah (as to mine fencing constituting or situated
upon  the  Hospah Assets) and SFPMC (as to mine fencing constituting or situated
upon  the SFPMC Assets) shall maintain and repair all mine fencing situated upon
the  Hospah  Owned  Property.  Additionally, prior to commencement of Commercial
Landfill  Operations,  SFPMC shall maintain and repair all mine fencing situated
upon  the  HNRC Retained Property, to the extent required by Licenses applicable
to  the  operation of the Mesquite Mine.  HNRC shall have the right, at its sole
and  absolute  discretion and at any time and from time to time during the SFPMC
Lease Term, to enter upon the SFPMC Leased Property for purposes of improving or
adding  to  fencing,  as  may  be  necessary  or convenient to the permitting or
operation of the Landfill Project.  At any time and from time to time during the
Option  Period,  HNRC shall have the right, at its sole and absolute discretion,
to  enter  upon the Hospah Owned Property for purposes of improving or adding to
fencing, as may be necessary or convenient to the permitting or operation of the
Landfill  Project.  Each of the Parties shall bear its own costs relating to the
maintenance,  repair  or  improvement  of  fencing.

     8.2  Monitoring  Facilities.  Pursuant  to the Asset Exchange Agreement and
Articles  III  and  IV  of  this Agreement, HNRC has conveyed unto Hospah and/or
SFPMC  ownership  of  all  Monitoring  Facilities  situated  on the Hospah Owned
Property  as  of  the  Closing  Date  and  has  leased unto SFPMC all Monitoring
Facilities situated on the SFPMC Leased Property as of the Closing Date.  During
the  SFPMC  Lease  Term,  SFPMC  shall  operate  and  maintain  all

                                       52
<PAGE>
Monitoring  Facilities situated upon the SFPMC Leased Property and Hospah (as to
monitoring Facilities constituting or situated upon Hospah Assets) and SFPMC (as
to  Monitoring  Facilities  constituting  or  situated  upon SFPMC Assets) shall
operate  such facilities on the Hospah Owned Property.  Hospah and SFPMC may, at
their  discretion,  operate  and  maintain,  or  shall allow HNRC to operate and
maintain  all  such  Monitoring Facilities upon Hospah Owned Property during the
Option  Period.  Additionally,  prior  to  commencement  of  Commercial Landfill
Operations, SFPMC shall operate and maintain all Monitoring, Facilities situated
upon  the  HNRC Retained Property, to the extent required by Licenses applicable
to the operation of the Mesquite Mine.  Subject to the prior written approval of
Hospah  (as  to  Monitoring  Facilities constituting or situated upon the Hospah
Assets)  and  /or of SFPMC (as to Monitoring Facilities constituting or situated
upon  the SFPMC Assets), which approval shall not be unreasonably withheld, HNRC
shall  have  the  right  to  construct,  operate  and  maintain  new  Monitoring
Facilities on the SFPMC Leased Property or on the Hospah Owned Property, for use
in  conjunction with the planning, permitting, construction, or operation of the
Landfill  Project.  HNRC  shall  be  the  owner  of  such Monitoring Facilities.
Except  as  set  forth  in  the  preceding sentence to the contrary, each of the
Parties  shall bear its own costs and expenses with respect to the construction,
operation and maintenance of Monitoring Facilities..  The Parties agree to share
all  Information  generated  by  or  in  connection  with the operation of their
respective  Monitoring  Facilities,  regardless  of  whether such Information is
generated  prior  or  subsequent  to the Closing Date.  Additionally, each Party
shall provide the other Parties with access to its Monitoring Facilities and the
right  to  take measurements and gather Information therefrom, provided that the
Party  using  such Monitoring Facilities shall reimburse to the Party, that owns
the  Monitoring  Facility  at  issue  (the "Owning Party") all Incremental Costs
incurred  by  the  Owning  Party  as  a  result  of  the  use  of its Monitoring
Facilities.  The  Parties  make no representations or warranties whatsoever, and
expressly  disclaim,  the truth, accuracy, completeness or representative nature
of  any  Information  whatsoever  supplied  or  to  be  supplied pursuant to the
provisions  of  this  Section  8.2.

     8.3  Surface  Runoff  Drainage  Facilities.  Pursuant to the Asset Exchange
          -------------------------------------
Agreement  and  Articles  III  and  IV of this Agreement, HNRC has conveyed unto
Hospah and/or SFPMC ownership of all Surface Runoff Drainage Facilities situated
upon  the  Hospah  Owned Property as of the Closing Date and has leased to SFPMC
all  Surface  Runoff Drainage Facilities situated upon the SFPMC Leased Property
as  of  the  Closing Date.  During the SFPMC Lease Term, SFPMC shall operate and
maintain  all  Surface Runoff Drainage Facilities situated upon the SFPMC Leased
Property  and  Hospah  (as to Surface Runoff Drainage Facilities constituting or
situated upon Hospah Assets) and SFPMC (as to Surface Drainage Runoff Facilities
constituting or situated upon SFPMC Assets) shall operate such facilities on the
Hospah  Owned  Property.  During  the Option Period, Hospah and/or SFPMC may, at
their  discretion,  operate  and  maintain,  or  shall allow HNRC to operate and
maintain,  all Surface Runoff Drainage Facilities situated upon the Hospah Owned
Property.  Additionally,  prior  to  commencement  of  Commercial  Landfill
Operations,  SFPMC  shall  operate  and  maintain  all  Surface  Runoff Drainage
Facilities  situated  upon the HNRC Retained Property, to the extent required by
Licenses applicable to the operation of the Mesquite Mine and HNRC hereby grants
to SFPMC such rights of access to such facilities as may be reasonably necessary
to  so  operate and so maintain such facilities.  Neither Hospah nor SFPMC shall
make  any  Alterations  or  Additions  to  Surface Runoff Drainage Facilities or
construct any new Surface Runoff Drainage Facilities without obtaining the prior
written  approval  of  HNRC,  which  approval  shall  not  be

                                       53
<PAGE>
unreasonably  withheld.  In  the  event that Hospah and/or SFPMC desires to make
any  such  Alterations  or  Additions  or  to  construct  any new Surface Runoff
Drainage  Facilities,  Hospah  (as  to  Surface  Runoff  Drainage  Facilities
constituting  or  situated upon Hospah Assets) and SFPMC (as to Surface Drainage
Facilities  constituting  or  situated  upon SFPMC Assets) shall provide written
notice  of  its  intentions to HNRC, setting forth in detail the location, scope
and  design  of  the  planned  facilities.  HNRC shall have the right to require
Hospah  (as  to Surface Runoff Drainage Facilities constituting or situated upon
Hospah  Assets)  and  SFPMC  (as  to Surface Drainage Facilities constituting or
situated  upon  SFPMC  Assets)  to  modify  the-  location or design of any such
facility, to the extent reasonably necessary to ensure consistency with drainage
plans  for the Landfill Project Any such modifications required by HNRC shall be
planned  so  as  not  to  adversely affect drainage with respect to the Mesquite
Mine.  Additionally,  upon receipt of a sufficient invoice, HNRC shall reimburse
to  Hospah  and/or  SFPMC  any Incremental Costs incurred by such Parties in the
construction  or  operation  of  its Surface Runoff Drainage Facilities so as to
comply  with  modifications  required  by HNRC.  HNRC shall indemnify the Hospah
Indemnitees  against any Losses resulting from Third Party Claims that relate to
drainage  problems  at  the Mesquite Mine that are caused by the construction or
operation by HNRC of the Landfill Project or associated facilities Except as set
forth  in this Section 8.3 to the contrary, each.  of the Parties shall bear its
own costs with respect to the construction, operation and maintenance of Surface
Runoff  Drainage  Facilities.

                                   ARTICLE IX

                                  MISCELLANEOUS
                                  -------------

     9.1  Emission_  Offsets.  At such time as Hospah and SFPMC elects, in their
          ------------------
sole  and  absolute  discretion, to permanently close and shut down the Mesquite
Mine,  HNRC  shall  be  entitled  to  utilize  any resulting air emission source
offsets and, upon request by HNRC, Hospah and SFPMC shall deliver to HNRC a duly
executed instrument of conveyance, in form and substance reasonably satisfactory
to  HNRC,  transferring  unto  HNRC  such  air  emission  source offsets.  Prior
thereto,  all  permitted  emission  offsets  not utilized in connection with the
Mesquite  Mine shall be made available to HNRC without charge for the benefit of
the  Landfill  Project.  The  covenants  set  forth in this Section 9.1 shall be
subject to Applicable Law and HNRC obtaining any necessary Licenses.

     9.2  Desert  Tortoises
          -----------------

          A.   Tortoise Mitigation _Credits.  Subject to Applicable Law and HNRC
               ----------------------------
obtaining  any  necessary Licenses, mitigation credits relating to the taking of
desert tortoises or their habitat that had already been earned or acquired as of
the  Closing  Date,  so as to allow the conduct of operations upon certain land,
shall stay in place and continue to apply notwithstanding the change in intended
use,  of  such  lands  from  purposes  relating to the Mesquite Mine to purposes
relating  to  the  Landfill  Project.

          B.   Taking  of  Tortoises.  In  the event that any desert tortoise or
               ---------------------
other endangered or threatened species is killed, relocated or otherwise "taken"
(within  the  meaning  of  the  Endangered  Species  Act  and  the  regulations
promulgated  thereunder)  as a result of either the actions of Hospah, SFPMC, or
their  respective  employees,  agents  or  representatives  or  the

                                       54
<PAGE>
operations  of  the  Mesquite Mine, Hospah and/or SFPMC, as applicable, shall be
solely  responsible  therefor  and  shall  indemnify  and hold harmless the HNRC
Indemnitees  from  and  against  all Losses, including without limitation Losses
resulting  from Third Party Claims, that arise out of or relate to such killing,
relocation or taking.  In the event that any desert tortoise or other endangered
or  threatened  species  is  killed,  relocated or otherwise "taken" (within the
meaning  of  the  Endangered  Species  Act  and  the  regulations  promulgated
thereunder)  as a result of either the actions of HNRC, its employees, agents or
representatives  or the operations of the Landfill Project, HNRC shall be solely
responsible  therefor  and  shall  indemnify  and  hold  harmless  the  Hospah
Indemnitees  from  and  against  all Losses, including without limitation Losses
resulting from Third Party Claims, that arise out of or relate to, such killing,
relocation  or taking.  The Parties shall consult and cooperate with each other,
and  take  such  other  actions_  as may be reasonably necessary, to ensure that
neither  the  BLM, nor the United States Fish and Wildlife Service nor any other
government  agency  attempts to hold a Party partially or wholly responsible for
the  killing,  relocation  or taking of wildlife, if such killing, relocation or
taking is the responsibility of another Party pursuant to the provisions of this
Section  9.2B.

     9.3  Cooperation  Relative  to  Licenses.  Each  of  the  Parties  shall be
          -----------------------------------
responsible to obtain and maintain all Licenses required with respect to its own
operations.  However,  each  of  the  Parties  covenants  to  cooperate  in  all
reasonable ways with efforts by each other Party to obtain or maintain Licenses,
including without limitation, at the request and subject to the direction of the
Party  seeking  to  obtain or maintain a License, by the execution and filing of
documents,  consents or other instruments.  Each of the Parties covenants not to
oppose,  challenge,  appeal or interfere with any efforts by each other Party to
obtain  or maintain any License.  The Parties shall cooperate with each other in
all  reasonable  ways  in  approaching  the  BLM  and  other permitting agencies
relative  to  the separation and operation of the Mesquite Mine and the Landfill
Project,  the  joint use of certain lands and Improvements and any and all other
matters  arising  pursuant  to  this  Agreement.

     9.4  Prohibition  on  Development  of Landfill of Hospah or SFPMC.  Hospah,
          ------------------------------------------------------------
SFPMC, and their respective Affiliates and the respective successors and assigns
shall_  be  strictly  prohibited from developing or operating a commercial waste
disposal  facility  on the Hospah Owned Property or the SFPMC Leased Property or
any portion thereof without the prior written consent of HNRC, which consent may
be  freely  withheld.

     9.5  Invoices and Audits.  Any  invoice for reimbursement provided pursuant
          -------------------
to  this  Agreement  shall set forth, in reasonable detail, an accounting of all
costs  and  expenses  incurred  by the Party seeking reimbursement.  The invoice
shall  describe, by date, the specific actions or tasks undertaken or performed,
the  hours worked, the personnel or contractor performing the work and the costs
or  expenses  incurred  in  connection  with  each  entry.  With respect to work
performed  by  a  Party's own employees, the amount charged shall not exceed the
Party's  actual  out-of-pocket  costs  and  the  documented  cost  to  it of the
employee's  time, based solely upon the direct costs of the employee's wages and
benefits.  The  Parties  shall  not  charge  for overhead, administration or any
portion  of  general expenses associated with their respective operations.  With
respect to work performed by or payments to third parties, all invoices shall be
accompanied  by  receipts  and sufficient evidence of payment.  A Party required
pursuant  to this Agreement to pay to another Party any reimbursement, including
without  limitation reimbursements relating to Incremental Costs, shall have the
right,  at  its  sole  and  absolute

                                       55
<PAGE>
discretion  and  at  its  sole cost, to conduct or cause to be conducted, during
normal  business hours, an audit of the financial books and records of the Party
seeking  reimbursement,  to  the  extent and in a manner reasonably necessary to
confirm  or  determine  the  proper  amount  of  the  reimbursement.

     9.6  Notices.  All  notices  and  other communications under this Agreement
shall  been in writing (including telex or similar writings) and shall be deemed
given  when  delivered  in  person,  sent  by  registered  mail  (return-receipt
requested)  or  sent  by  cable,  telex,  telegram,  facsimile  transmission, or
reputable  overnight  service,  to the Parties at the following addresses (or to
such  address as a Party may have specified by notice given to the other Parties
pursuant  to  this  provision):

               (i)  If  to  HNRC:

                    c/o  Hanson  Industries
                    99  Wood  Avenue  South
                    Iselin,  New  Jersey  08830
                    Attention:  General  Counsel

                    with  a  copy  to:

                    Manager,  Mesquite  Regional  Landfill
                    444  S  8th  Street
                    El  Centro,  CA  92243

               (ii) If  to  Hospah:

                    Hospah  Coal  Corporation
                    6200  Uptown  Boulevard,  N.E.
                    Albuquerque,  New  Mexico  87110
                    Attention:  General  Counsel

                    with  a  copy  to:

                    Manager,  Mesquite  Mine
                    6502  E.  Highway  78
                    Glamis,  CA  92227-9306

              (iii) If  to  SFPMC:

                    Santa Fe Pacific Minerals Corporation
                    6200  Uptown  Boulevard,  N.E.
                    Albuquerque,  New  Mexico  87110
                    Attention:  General  Counsel

                    with  a  copy  to:

                                       56
<PAGE>
                    Manager,  Mesquite  Mine
                    6502  E.  Highway  78
                    Glamis,  CA  92227-9306

     9.7  Patents.  Any  decision  to apply to the BLM for patents to Unpatented
          -------
Claims  encompassed within the Hospah Owned Property shall be made by Hospah, in
its sole and absolute discretion.  All costs and expenses associated with such a
patent application shall be paid and borne exclusively by Hospah, provided that,
in  the  event  that Hospah applies for patents to Unpatented Claims encompassed
within  the  Hospah-Owned Property pursuant to a written request from HNRC, HNRC
shall  reimburse  to Hospah, upon receipt of a sufficient invoice, all costs and
expenses  incurred by Hospah in connection with such patent application.  Either
HNRC  or  (during  the SFPMC Lease Term) SFPMC may elect to apply to the BLM for
patents  to  Unpatented  Claims  encompassed  within  the SFPMC Leased Property,
provided  that  the  Party initiating such patent application shall pay and bear
all  costs  and expenses associated therewith.  HNRC shall not submit any patent
application  that  will  cause  a  foreseeable  Material Adverse Effect upon the
operations  of  the  Mesquite Mine, as such operations are reflected in the mine
plan  filed with the BLM as of the date of filing of the patent application.  At
the  request  and  subject  to the direction of the Party filing or intending to
file  a patent application hereunder, each other Party shall take all reasonably
practicable  actions  in  support  of such patent application, including without
limitation  by  the  execution and filing of documents, instruments and notices.
Each  of  the  Parties  agrees  not  to  object  to, protest or adverse a patent
application filed by another Party hereunder.  Any patent issued with respect to
the  SFPMC  Leased  Property,  the  Hospah  owned  Property or the HNRC Retained
Property  shall become subject to the terms and conditions of this Agreement to,
the  same extent and in the same manner as the Unpatented Claims with respect to
which  patent  is  issued.  Prior  to  applying  to the BLM for a patent, to any
Unpatented  Claim  encompassed  within  the  Hospah Owned Property, Hospah shall
obtain  a  written agreement with HNRC as to the Option Purchase Price that will
be paid with respect to that claim in the event that HNRC exercises the Purchase
Option  with  respect  thereto.

     9.8  Confidentiality.  Each  of  the  Parties  covenants and agrees that it
          ---------------
shall protect as confidential any and all non-public Information that it obtains
or acquires relative to the business, properties, finances or operations of each
other  Party  as  a  result  of  or  in  connection with the Performance of this
Agreement,  and  shall not give, disclose or make available any such Information
to  any third party or to the public generally without the prior written consent
of  the  Party  to  whom  the Information pertains (the "non-disclosing Party"),
which consent shall, not be withheld unless the non-disclosing Party believes in
good faith that the Information at issue is truly confidential or proprietary to
its  business  or  operations,  except  to  the  extent  that such disclosure is
required  by Applicable Law or strictly necessary in connection with the conduct
of the disclosing Party's own operations.  No party shall have any obligation to
seek the consent of the non-disclosing Party prior to disclosing pursuant to any
corporate reporting in the ordinary course of business to its board of directors
or  shareholders any non-public Information that it obtains or acquires relative
to  the business, properties, finances or operations of the non-disclosing Party
as  a  result  of  or  in  connection  with  the  performance of this Agreement;
provided,  however,  that  no  Party  shall  disclose  such  Information  to its
directors  or  shareholders in such a fashion, unless required by Applicable Law
and  provided  further  that  Hospah  and  SFPMC  shall take such actions as are
necessary  to  ensure  that  the  confidentiality  of  such

                                       57
<PAGE>
Information  is  protected by their respective directors or shareholders to whom
it is disclosed.  The provisions of confidentiality set forth in, this Agreement
are  in  addition to, and are not intended to replace or supersede, that certain
Confidentiality Agreement dated September 15, 1992 between Hanson Industries and
Santa  Fe Pacific Corporation.  The restrictions of confidentiality set forth in
this  Agreement  shall apply throughout the SFPMC Lease Term and the term of the
Purchase  Option  and  so long thereafter as any of the rights or obligations of
the  Parties  hereunder  continue  in  effect.

     9.9  Memorandum.  The Parties shall execute and record a Memorandum of this
          ----------
Agreement with the Imperial County Clerk and Recorder's Office, which Memorandum
may  set forth any and all terms and conditions of this Agreement exclusive only
of confidential financial matters.  Additionally, each of SFPMC and Hospah shall
have  the  right,  in  their  discretion  and  at  their  sole cost, to file the
Memorandum  with  the  U.S.  Department  of  Interior.

     9.10  Disclaimer.  THE  PARTIES  MAKE  NO  REPRESENTATIONS  OR  WARRANTIES
           ----------
WHATSOEVER, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF
MERCHANTABILITY,  SUITABILITY,  OR FITNESS FOR A PARTICULAR PURPOSE, OR QUALITY,
WITH  RESPECT  TO  ANY  ASSETS TRANSFERRED OR TO BE TRANSFERRED (BY HOSPAH OR BY
HNRC)  PURSUANT TO THIS AGREEMENT, OR AS TO THE CONDITION OR WORKMANSHIP THEREOF
OR  THE ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR PATENT.  Additionally,
subject  to  the  provisions  of  Section  3.7 of this Agreement relative to the
removal  of  Liens  encumbering  Selected  Option  Property  prior to the Option
Closing, the Parties make no representations or warranties whatsoever, expressed
or  implied,  with  respect  to:  (i)  their right or power to convey any right,
title  or  interest  in or to any real or personal property transferred or to be
transferred  pursuant  to this Agreement; (ii) the truth, accuracy, completeness
or  representative  nature  of any Information provided or to be provided by it,
its  agents  or  its representatives pursuant to this Agreement (iii) whether or
not  any  action  provided  for  or  contemplated  under  this  Agreement  is in
compliance  with  Applicable  Law, and (iv) the Licenses that may be required to
conduct any operation or take any action provided for or contemplated under this
Agreement.

     9.11  Liens.  Each  of  the  Parties  shall  take  such  actions  as may be
           -----
reasonably  necessary to ensure that its operations and activities do not result
in  any Liens upon any right, title or interest held by any other Party in or to
any  real  or personal property; provided, however, nothing in this Section 9.11
shall  prohibit  the granting of Liens upon the granting Party's right, title or
interest as permitted by and subject to the provisions of Section 4.12.

     9.12  Indemnities.
           -----------

          A.   By HNRC.  HNRC  shall  indemnify  and  hold  harmless  the Hospah
               -------
Indemnitees,  from  and  against  any and all Losses arising out of or resulting
from:

               (i)  any  failure  by  HNRC  to perform or comply with any of its
covenants,  obligations  or  agreements  contained  in  this  Agreement;

                                       58
<PAGE>
               (ii) any Third Party Claim arising out of the operations, actions
or  failures to act of HNRC or its agents upon or with respect to the properties
subject  to  this  Agreement;  and

               (iii)  any  Third  Party  Claim  relating  to  Reclamation  and
Environmental  Responsibilities  of  HNRC  under  this  Agreement.

          B.   By  Hospah.  Hospah  shall  indemnify  and hold harmless the HNRC
               ----------
Indemnitees  from  and  against  any  and all Losses arising out of or resulting
from:

               (i)  any  failure  by Hospah to perform or comply with any of its
covenants, obligations or agreements contained in this Agreement

               (ii) any Third Party Claim arising out of the operations, actions
or  failures,  to  act  of  Hospah  or  its  agents upon or with respect_ to the
properties  subject  to  this  Agreement  and

               (iii)  any  Third  Party  Claim  relating  to  Reclamation  and
Environmental  Responsibilities  of  Hospah  under  this  Agreement.

          C.   By  SFPMC.  SFPMC  shall  indemnify  and  hold  harmless the HNRC
               ---------
Indemnitees  from  and  against  any  and all Losses arising out of or resulting
from:

               (i)  any  failure  by  SFPMC to perform or comply with any of its
covenants, obligations or agreements contained in this Agreement;

               (ii) any Third Party Claim arising out of the operations, actions
or  failure to act of SFPMC or its agents upon or with respect to the properties
subject  to  this  Agreement;  and

               (iii)  any  Third  Party  Claim  relating  to  Reclamation  and
Environmental Responsibilities of SFPMC under this Agreement.

          D.   Indemnities  Set  Forth in Other Provisions.  The indemnities set
               -------------------------------------------
forth  in  this  Section 9.12 are in addition to other indemnities expressly set
forth in other provisions of this Agreement and in Sections 13.1 and 13.2 of the
Asset  Exchange  Agreement.

     9.13  Binding  Obligations;  SFPMC  Lease.
           -----------------------------------

          A.   Obligations.  Each  of  SFPMC  and  Hospah  shall  be jointly and
               -----------
severally  liable  for  all  Undertakings  which  are binding upon both of them,
including  without  limitation  Undertakings  to  be  performed by Hospah and/or
SFPMC, except to the extent that the specific provisions of this Agreement limit
such  joint  and  several  liability.  As used in this Agreement, "Undertakings"
shall  mean  all  obligations,  terms,  conditions,  covenants,  undertakings,
indemnities,  liabilities,  responsibilities  and agreements of Hospah and/or of
SFPMC  under  this  Agreement.

                                       59
<PAGE>
          B.   Following  the  Closing,  Hospah and SFPMC may enter into a Lease
Agreement  (the  "Hospah  Property  Lease") pursuant to which Hospah would lease
that  portion  of  the  Hospah Owned Property owned by Hospah to SFPMC.  In such
event,  SFPMC,  in  its  capacity  as  lessee  of  a portion of the Hospah Owned
Property,  would  assume and perform all of Hospah's obligations and be entitled
to  exercise  all  of  Hospah's rights and privileges under this Agreement.  The
Hospah  Property  Lease shall in no way increase the obligations or diminish the
rights  of  HNRC  under this Agreement.  Termination or expiration of the Hospah
Property Lease shall not release or relieve SFPMC from Undertakings, that accrue
under  this  Agreement  or  under the Hospah Property Lease prior to the date of
such  termination  or  expiration.  Termination  or  expiration  of  the  Hospah
Property  Lease  shall  release  and relieve SFPMC from Undertakings that accrue
under  this  Agreement or under the Hospah Property Lease subsequent to the date
of  such termination or expiration.  HNRC hereby consents to the granting of the
Hospah  Property  Lease  and  the  transactions  contemplated  thereunder.  Upon
entering  into  the  Hospah  Property,  Lease,  SFPMC  and Hospah shall promptly
provide  to  HNRC  written  notice  thereof.

     9.14  Relationship to Asset Exchange Agreement.  In general, the provisions
           ----------------------------------------
of  this Agreement are intended to supplement and coexist with the provisions of
the  Asset  Exchange  Agreement  (relative to matters pertaining to the Mesquite
Properties).  However,  in  the  event  than any of the terms and conditions set
forth  in  this  Agreement  conflict  directly with the terms and conditions set
forth  in  the  Asset  Exchange  Agreement,  the  terms  and  conditions of this
Agreement  shall in all instances prevail and govern with respect to all matters
pertaining  to the Mesquite Properties.  No provision of this Agreement shall be
construed as intending to limit or abrogate in any way any provision of Sections
3.3  and  13.2  of  the  Asset  Exchange  Agreement,  which (among various other
provisions  of  the  Asset  Exchange  Agreement) are intended to survive in full
force  and  effect.

     9.15  Entire Agreement.  This Agreement (together with all of its Exhibits)
           ----------------
and  the  Asset  Exchange  Agreement  (subject  to  the limitations set forth in
Section  9.14  of this Agreement):  (i) contain, and are intended, as a complete
statement  of  all  the terms of the arrangements of the Parties with respect to
the matters provided for herein, (ii) supersede any previous agreements, written
or  oral, and understanding among the Parties with respect to those matters, and
(iii)  cannot  be  changed  or  terminated,  orally.

     9.16  Governing  Law.  Notwithstanding  any provision of the Asset Exchange
           --------------
Agreement  to the contrary, this Agreement shall be governed by and construed in
accordance  with  the  laws of the State of California, without giving effect to
conflicts  of law principles.  In particular, the Parties agree that the laws of
the  State  of  California  shall  govern  the  construction, interpretation and
enforceability  of  this  Agreement  with  respect  to all matters pertaining to
permissible  time  periods for the vesting of any right, title or interest in or
to  any  real  or  personal  property.

     9.17  Table  of  Contents  and Headings.  The table of contents and section
           ---------------------------------
headings  of  this  Agreement and titles given to Exhibits to this Agreement are
for reference purposes only and are to be given no effect in the construction or
interpretation  off  this  Agreement.

                                       60
<PAGE>
     9.18  Separability.  The invalidity or unenforceability of any provision of
           ------------
this  Agreement  shall  not  affect  the validity or enforceability of any other
provision  of  this  Agreement,  which  shall  remain  in full force and effect.
Additionally,  in  the  event  that  any  provision of this Agreement is finally
determined,  after exhaustion of any applicable appeals or appeal periods, to be
unenforceable,  that  provision  shall  be revised so as to be enforceable under
Applicable  Law  and  so  as  best  to  reflect  the  intentions  of the Parties
hereunder.

     9.19  Waiver.  Any  Party  may  waive  compliance  by  the other Party with
           ------
respect  to  any provisions of this Agreement.  No waiver of any provision shall
be  construed  as a waiver of any other provision.  No waiver shall be construed
as  an  ongoing  waiver with respect to subsequent events unless it expressly so
provides.  Any waiver must be in writing, signed by the waiving Party and recite
the  provision  being  waived.

     9.20  Binding Effect; Assignment.  This Agreement shall be binding upon and
           --------------------------
inure  to  the  benefit  of  the  Parties  and  their  respective successors and
permitted  assigns.  All  of the terms and conditions of this Agreement shall be
deemed  to  run  with  the  land.  Nothing  in this Agreement shall create or be
deemed  to create any third party beneficiary rights of any person or entity not
a  Party  to  this  Agreement.  Subject to the terms and conditions set forth in
this Section 9.20 or elsewhere in this Agreement, any of the Parties may sell or
transfer  to  any  third party any of its right, title or interest in or to this
Agreement  or  the  properties  subject  hereto,  provided that any such sale or
transfer of real property by Hospah or SFPMC shall be solely to a transferee who
intends in good faith to use such real property for bona fide mining and related
purposes.  The  transferring  Party shall require the purchaser or transferee of
such  right,  title  or  interest  to  agree  to  be  bound by all the terms and
conditions  of  this  Agreement  and to assume all (or a percentage equal to the
undivided interest transferred) of the obligations and liabilities whatsoever of
the  transferring  Party.  Additionally,  notwithstanding  any provision of this
Agreement  or  off  the Asset Exchange Agreement to the contrary, no transfer or
assignment  of any right, title or interest in or to any of the real or personal
property  subject  to  this  Agreement  or in or to this Agreement itself, shall
relieve  or  release  the  transferring  or  assigning  Party  from  any  of its
liabilities  or  obligations  arising  under this Agreement.  Any assignments or
transfers  by  the  Parties  of any right, title or interest in or to any of the
real  or personal property subject to the terms and conditions of this Agreement
shall  be  subject to the further express restrictions and limitations expressly
set  forth  elsewhere  in  this  Agreement  or  in the Asset Exchange Agreement.

     9.21  Right  of Cure.  In the event that any Party (the "defaulting Party")
           --------------
fails  fully, timely or properly to perform any duty, obligation or covenant set
forth in any provision of this Agreement, and such failure remains uncured for a
Period  of  30  days  following the provision by the non-defaulting Party to the
defaulting  Party  of a written notice detailing the failure, the non-defaulting
Party shall have the right (in addition to any other rights or remedies provided
elsewhere  in  this Agreement or otherwise available, at law or in equity, under
Applicable  Law),  but  not  the  obligation,  to  take  such  actions  as  the
non-defaulting Party, in its sole and absolute discretion, may deem necessary or
prudent to attempt to cure or commence to cure the failure and to enter upon all
property  of  the  defaulting Party for purposes relating thereto, in which case
the  defaulting  Party shall reimburse to the non-defaulting party, upon receipt
of  a  sufficient invoice, all costs and expenses incurred by the non-defaulting
Party in curing or attempting to cure the failure; provided, however, that in an
emergency  a  Party  may  take  such  action  without

                                       61
<PAGE>
the  necessity  of  such  prior  notice  (although  such  notice  shall be given
contemporaneously  with or promptly after such actions).  The provisions of this
Section  9.21  shall apply with respect to all duties, obligations and covenants
arising under this Agreement, including without limitation those that pertain to
the  SFPMC  Lease.

     9.22 Counterparts.  This Agreement may be executed in counterparts, each of
          ------------
which  shall be an original, but which together shall constitute one in the same
Agreement.

     9.23  Remedies.  The  remedies  and  relief set forth in this Agreement are
           --------
cumulative  and not in the alternative and are in addition to any other remedies
or  relief  that may otherwise be available to the Parties, at law or in equity.
The  Parties  shall  have the right to pursue any and all available remedies and
relief,  either  sequentially  or  in  concert.

     9.24  Further Assurances.  Upon request by any Party, the Parties covenant,
           ------------------
at  any  time and from time to time, to cooperate reasonably with each other and
take  all  such  further actions, including without limitation the execution and
filing of additional instruments or documents, as may be reasonably necessary to
carry out the intent, purposes and terms of this Agreement.  Each of the Parties
shall  have  the  right to enter upon the properties of each other Party, to the
extent  reasonably necessary to perform any obligations or to exercise any right
set  forth  in  this  Agreement.

     9.25  Perpetuities.  Notwithstanding any provision of this Agreement to the
           ------------
contrary,  any  right  or  option  to  acquire  any interest in real or personal
property  under  this Agreement must be exercised, if at all, so as to vest such
interest  in  the  acquirer within the time period allowed under Applicable Law.

     9.26  Quarterly  Meetings.  The  manager  o f each Party's operations shall
           -------------------
have  the  right  to  call  a  meeting  upon no less than thirty (30) days prior
written  notice  whenever  it  is  deemed necessary for purposes of coordinating
their  respective operations and activities upon or with respect to the Mesquite
Properties  and  for  other  purposes  arising  under  or  relating  to  the
administration  of this Agreement.  Such quarterly meetings shall be held for so
long  as  any  of  the rights or obligations of any of the Parties arising under
this Agreement remain in effect.  Such meetings shall be held at such places and
times  and  on  such specific dates as may be mutually agreeable to the Parties.

     9.27  Effective  Date.  This  Agreement  shall be deemed effective upon and
           ---------------
simultaneously  with  the  Closing.

     9.28  Disputes.  In  the  event  that  any  dispute  or disagreement arises
           --------
between  the  Parties  with  respect  to  this  Agreement,  or the transactions,
operations  or  properties  subject  hereto  or contemplated hereby, the Parties
shall meet in a good faith attempt to resolve such dispute or disagreement, in a
manner  consistent  with the objectives, intent and purposes set in Section 9.28
shall  not  be  construed  as  limiting  or abrogating other remedies, relief or
forums  for  dispute  resolution  otherwise  available  to  the  Parties.

     IN  WITNESS  WHEREOF,  the  Parties hereto have caused this Agreement to be
executed  by  their  respective  officers  thereunto  duly  authorized.

                                       62
<PAGE>
HANSON NATURAL RESOURCES COMPANY           HOSPAH COAL COMPANY
By:  Its General Partners:

     Gold Fields Mining Corporation        By:     /s/ K.T. Zitling
                                              ----------------------------------
By:/s/ Collon C. Kennedy                   Name:   K.T. Zitling
       ----------------------------        Title:  President
Name:  Collon C. Kennedy
Title: Vice President                      SANTA FE PACIFIC MINERALS CORPORATION

Cavenham Forest Industries, Inc.           By:__________________________________
                                           Name:________________________________
                                           Title:_______________________________
By:/s/ Collon C. Kennedy
       ----------------------------
Name:  Collon C. Kennedy
Title: Vice President

Cavenham Energy Resources, Inc.

By:/s/ Collon C. Kennedy
       ----------------------------
Name:  Collon C. Kennedy
Title: Vice President

                                       63
<PAGE>
                         AMENDMENT TO MINERAL LEASE AND
                       LANDFILL FACILITIES LEASE AGREEMENT

     THIS  AMENDMENT  TO  MINERAL  LEASE AND LANDFILL FACILITIES LEASE AGREEMENT
("Amendment")  is  to  be  effective  as of April 24, 1995 by and between HANSON
NATURAL  RESOURCES COMPANY ("HNRC"), a Delaware general partnership, HOSPAH COAL
COMPANY  ("HOSPAH"),  a  Delaware  corporation'  and  SANTA  FE  PACIFIC  GOLD
CORPORATION, a Delaware corporation, formerly known as Santa Fe Pacific Minerals
Corporation  ("SFPMC").  HNRC,  Hospah  and  SFPMC  are  sometimes  hereinafter
individually  and  collectively  referred  to  as  the  "Parties".

RECITALS:

     A.   The Parties entered into a Mineral Lease and Landfill Facilities Lease
Agreement  dated  June  25,  1993  ("Agreement")  and

     B.   The  Parties  desire  to  amend  the Agreement in the manner set forth
below.

     NOW,  THEREFORE, in consideration of the premises and mutual agreements set
forth  herein  the  Parties  agree  as  follows:

     1.   Terms defined in the Agreement have the same meaning in this Amendment
unless  otherwise  defined  herein.

     2.   Section  2.3  is  added  immediately  after  Section  2.2  as  follows

     "2.3  Taxes.  HNRC  shall pay when due all taxes and assessments, including
     without  limitation  all  real  and  personal  property taxes, levied upon,
     assessed  against  or  relating  to  the  HNRC-Retained Property, or to any
     Improvements  or  personal  property  situated  thereon, or Alterations and
     Additions thereto. If HNRC hereafter constructs facilities for the Landfill
     Project  on the SFPMC Leased Property, HNRC shall be solely responsible for
     the payment of the increased amount of tax directly attributable to the new
     facilities."

     3.   Section  3.10  B  is amended by adding the following immediately after
the  last  sentence  thereof:

     "HNRC,  using  its best efforts, has determined that a lot line adjustment,
     approved  by Imperial County, accomplishes the objectives of Section 3.10 A
     and  satisfies  the  conditions of Section 3.10B. HNRC hereby requests that
     Hospah  join  in  the  execution  and  filing  of  the  lot line adjustment
     application attached hereto, and Hospah agrees to join in such application.
     HNRC  shall  indemnify  and  hold'

<PAGE>
     harmless the Hospah Indemnities from and against any and all Losses arising
     out of or resulting from HNRC's filing of a lot line adjustment application
     or  any  resulting  alleged  violation  of  the  Subdivision Map Act in its
     efforts  to  accomplish the objectives of Section 3.10 A. Upon the approval
     of  the  lot  line  adjustment  by  the appropriate governmental agency for
     Imperial  County,  the  Escrowed  Deed  shall  be  delivered  to  HNRC.

     Since  the  SFPMC Lease is a mineral lease, the Parties have concluded that
     pursuant  to  Sec. 66412 of the California Government Code, the Subdivision
     Map  Act  is  inapplicable  to  the  SFPMC  Lease  and the inclusion of any
     additional  property  within  the  SFPMC  Lease."

     4.   Section 4.19 is amended in its entirety to read as follows:

     "Prohibition  on Dumping on the Portion of the 220 Dump within the Landfill
     Footprint  Neither  SFPMC nor Hospah shall dump or stockpile any Ore, Spent
     Ore,  Clay,  Overburden  or  other  materials on those portions of the "220
     Dump",  or any extension or expansion thereof, situated within the Landfill
     Footprint,  except  for  the  following:

          (i)  inert  materials (average 350 tons per year) to be disposed of by
          Hospah  or SFPMC at the inert material landfill within the "220 Dump",

          (ii)  the Overburden needed to cover the inert materials in accordance
          with  applicable  rules,  regulations,  and  permits,  and

          (iii)  any, other materials expressly allowed by HNRC in writing after
          Hospah or SFPMC submits to HNRC a written proposal specifying the type
          and  quantity  of  materials  to  be  dumped,  a  description of where
          materials  will be dumped (including a map), and any other information
          requested  by HNRC after receiving SFPMC's written proposal. HNRC may,
          for  any  reason,  within  thirty  (30)  days  after  receipt  of such
          proposal,  reject Hospah or SFPMC's proposal. If HNRC allows Hospah or
          SFPMC  to  dump  materials  on  any extension or expansion of the "220
          Dump"  into  the  Landfill  Footprint,  the  area  encompassed by such
          extension or expansion shall become SFPMC Leased Property and shall be
          subject  to  all  of  the  terms  and  conditions  set  forth herein."

     5.   This  Amendment  shall  be deemed to be an amendment to the Agreement,
and  the  Agreement,  as  amended, is hereby ratified, approved and confirmed in
each  and  every;  respect.  All  references  to the Agreement herein and in any
other  document,  instrument,  agreement or writing shall hereafter be deemed to
refer  to  the  Agreement  as  amended  hereby.

                                        2
<PAGE>
     IN  WITNESS  WHEREOF, the Parties have caused this Amendment to be executed
by  their  respective  duly  authorized  officers.

HANSON NATURAL RESOURCES COMPANY          HOSPAH COAL COMPANY

By   Its General Partners:                By:    /s/ Bruce D. Hansen
                                                 -------------------
                                          Name:  Bruce D. Handon
     Gold Fields Mining Corporation       Title: President

     Name:  /s/ Collon C. Kennedy         SANTA FE PACIFIC GOLD
            -------------------------     CORPORATION, formerly known
     By:    Collon C. Kennedy             as Santa Fe Pacific Minerals
     Title: Vice President                Corporation

Cavenham Forest Industries,Inc.           By:    /s/ David K. Hogan
                                                 ------------------
Name:  /s/ Collon C. Kennedy              Name:  David K. Hogan
       ------------------------------     Title: Vice President
By:    Collon C. Kennedy
Title: Vice President

Cavenham Energy Resources, Inc.

Name:  /s/ Collon C. Kennedy
       ------------------------------
By:    Collon C. Kennedy
Title: Vice President

                                        3
<PAGE>
                        SECOND AMENDMENT TO MINERAL LEASE
                     AND LANDFILL FACILITIES LEASE AGREEMENT

     THIS  SECOND  AMENDMENT  TO  MINERAL  LEASE  AND  LANDFILL FACILITIES LEASE
AGREEMENT ("Second Amendment") is made and entered into effective as of the 24th
day  of  August,  1998,  by  and  between:

          GOLD  FIELDS  MINING CORPORATION, a Delaware corporation, with offices
     at  14062  Denver  West  Parkway,  Suite  110,  Golden, Colorado 80401-3122
     ("GFMC"),  successor  in  interest  to  Peabody  Natural  Resources Company
     ("PNRC") formerly known as Hanson Natural Resources Company,

and

          SANTA FE PACIFIC GOLD CORPORATION, a Delaware corporation with offices
     at  1700  Lincoln  St.,  Denver, Colorado 80203 ("SFPGC") formerly known as
     Santa  Fe  Pacific  Minerals  Corporation,

and

          HOSPAH  COAL  COMPANY,  a  Delaware  corporation  with offices at 1700
     Lincoln St., Denver, Colorado 80203 ("Hospah" )

GFMC,  SFPGC  and Hospah are sometimes hereinafter individually and collectively
referred  to  as  the  "Parties".

                                    RECITALS:

     A.   PNRC,  SFPGC  and  Hospah  entered  into  a Mineral Lease and Landfill
Facilities  Lease  Agreement  dated  June 25, 1993 ("Agreement") a memorandum of
which  was  recorded in Book 1736, Page 1505 in the Official Records of Imperial
County,  California.

     B.   PNRC,  SFPGC and Hospah entered into an Amendment to Mineral Lease and
Landfill Facilities Lease Agreement dated April 24, 1995 ("First Amendment").

     C.   A  Memorandum  of  Amendments to Mineral Lease and Landfill Facilities
Lease Agreement dated  February 26, 1996 was recorded in Book 1838, Page 1331 in
the  official  Records  of  Imperial  County,  California.

     D.   On January 31, 1997, GFMC completed a land exchange with the Bureau of
Land Management which affects certain lands covered by the Agreement, as amended
by  the  First  Amendment.

     E.   On  August 7, 1997, an Affidavit and a Registration of Trade Name were
filed  in the records of New Castle County, Delaware to effectuate a name change
from  Hanson Natural Resources Company to Peabody Natural Resources Company. The
partners  in  PNRC  are  GFMC  and  Peabody  America,  Inc.

                                        4
<PAGE>
     F.   Since June 25, 1993, ownership interests and property descriptions for
the  property  covered  by the Agreement have changed. The Parties have conveyed
property  among  each other, abandoned certain unpatented mining claims and mill
sites,  terminated  leases  and  option  agreements,  purchased  properties, and
received  patents  from  the  United  States.  The  BLM  has invalidated certain
unpatented  mining  claims  and issued supplemental plats describing portions of
the  property  covered  by  the  Agreement,  as  amended by the First Amendment.

     G.   On  August 21, 1998, PNRC transferred to GFMC all of its rights, title
and interests in or to the Agreement, as amended by the First Amendment, and the
property  subject  to  the  Agreement.

     H.   The  Parties  desire  to  amend the Agreement, as amended by the First
Amendment,  in  accordance  with  this  Second  Amendment to reflect the current
ownership  interests  in  the  property  covered  by  the Agreement, as amended.

     NOW  THEREFORE,  in consideration of the premises and mutual agreements set
forth  herein,  the  parties  agree  as  follows

     1.   EXHIBITS.  Exhibits  A,  B, C, D, E and F to the Agreement are amended
          ---------
and  replaced  by  the  exhibits  attached hereto. Exhibit A-1 is deleted in its
entirety.

     2.   MEMORANDUM.  The  parties  shall  execute  a memorandum of this Second
          -----------
Amendment to be recorded in the Official Records of Imperial County, California.

     3.   RATIFICATION.  The  parties  hereby  ratify,  approve  and confirm the
          -------------
Agreement as amended by the First Amendment and this Second Amendment.

     IN  WITNESS  WHEREOF,  the  parties  have executed this SECOND AMENDMENT TO
MINERAL  LEASE  AND  LANDFILL FACILITIES LEASE AGREEMENT effective as of the day
and  year  first  above  written.

GOLD FIELDS MINING CORPORATION, a      HOSPAH COAL COMPANY, a
Delaware corporation                   Delaware corporation

By: /s/ Collon Kennedy                 By:  /s/  Brent D. Hansen
   -------------------------------         ------------------------------
Its:    Vice President                 Its: President

                                       SANTA FE PACIFIC GOLD
                                       CORPORATION,
                                       a Delaware corporation, formerly known as
                                       Santa Fe Pacific Minerals Corporation

                                       By:  /s/  T.J. Schmitt
                                            -----------------------------
                                       Its: Vice President and Secretary

                                        5
<PAGE>EXHIBIT 10.19

                               REFINING AGREEMENT

     THIS  REFINING  AGREEMENT. (hereinafter the "Agreement") effective December
1st, 2003, is by and between Western Goldfields Inc., Mesquite Mine (hereinafter
called "Producer") and Johnson Matthey Inc. (hereinafter called "Refiner").

                                   WITNESSETH:

     WHEREAS,  Producer  owns  and  operates  mining,  processing  and  related
facilities near the city of Brawley, California (hereinafter the "Mine") for the
production  of  gold  Dore bullion;  and

     WHEREAS,  Refiner has facilities located in Salt Lake City, Utah capable of
refining  gold  Dore bullion;

     NOW, THEREFORE, Producer agree to deliver gold Dore bullion to Refiner, and
Refiner  agrees to refine the gold and silver content thereof in accordance with
the  terms  and  conditions  hereinafter  set  forth:

                                    ARTICLE 1
                                   Definitions
                                   -----------

     1.1  The  terms  defined  in this Article 1 shall, for all purposes of this
Agreement,  have  the  meanings  herein  specified, unless otherwise required or
specified.

Accountable  Gold:
------------------
     The  term  "Accountable  Gold"  shall  mean  99.85%  of the mutually agreed
assayed  gold  content (as determined in accordance with this Agreement) of each
Ounce  of  Dore.

Accountable  Silver:
--------------------
     The  term  "Accountable  Silver"  shall  mean 97.00% of the mutually agreed
assayed  silver content (determined as provided in this Agreement) of each Ounce
of  Dore.

Actual  Date  of  Shipment:
---------------------------
     The  term  "Actual  Date  of  Shipment"  shall  mean, with reference to any
shipment  hereunder,  the date on which the Dore is shipped from the Mine to the
Refiner.

Business  Day:
-------------
     The  term  "Business  Day"  shall  mean  any calendar day, except Saturday,
Sunday,  the  legal  and other holidays shown in Appendix 1 and any y the London
Metal  exchange  is  closed.

Date  of  Arrival:
-----------------
     The  term  "Date  of  Arrival"  shall  mean, with reference to any shipment
hereunder,  the  date  on  which  Dore is  received  by  the  Refiner.

<PAGE>
Date  of  Sampling:
-------------------
     The  term  "Date  of  Sampling"  shall mean, with reference to any shipment
hereunder,  the  date  on  which  sampling  occurs  at  the Sampling Facility in
accordance  with  Section  9.5,  below.

Dore:
----
     The  term  "Dore"  shall  mean  gold  Dore bullion produced from the Mine.

London  Gold  Price:
--------------------
     The  term  "London  Gold  Price" shall mean the London bullion market Final
P.M.  fixing  for  gold  (in  United  States  dollars,  if  quoted  in dollars).

Mine:
-----
     The  term  "Mine"  shall mean the mining, processing and related facilities
developed  and  to  be  developed  by  Producer  on gold-bearing properties near
Brawley,  California.

Ounce:
------
     The term "Ounce" shall mean a troy ounce.

Production  Year:
-----------------
     The  term  "Production  Year"  shall mean the period from January l through
December  31.

Quotational  Day  for  Gold/Silver:
-----------------------------------
     The  term  "Quotational Day for Gold/Silver" shall mean the Date of Arrival
or,  in  the  event the Date of Arrival is not a Business Day, the next Business
Day  shall  be  the  "Quotational  Day  for  Gold/Silver".

Refiner  Noon  Silver  Price:
-----------------------------
     The  term  "Refiner Noon Silver Price" shall mean the COMEX Closing bullion
fixing  price  for  silver  (in  United  States  dollars, if quoted in dollars).

Refinery:
---------
     The term; "Refinery" shall mean the facilities for the refining of precious
metals  operated  by  Refiner  in  the  city  of  Salt  Lake  City,  Utah.

Sampling  Facility:
-------------------
     The  term "Sampling Facility" shall mean the facilities for the sampling of
precious  metals  operated  by  Refiner  at  the  Refinery.

Settlement  Date:
-----------------
     The  term  "Settlement  Date"  shall mean the fifteenth (15th) Calendar Day
following  the  Date  of  Sampling.

                                    ARTICLE 2
                                     Product
                                     -------

     2.1  Producer  expects,  but  does  not represent or warrant, that the Dore
delivered hereunder will have a typical range conforming to the fallowing sample
assays  (without  warranting  the  absence  of  other  elements):

                                        2
<PAGE>
<TABLE>
<CAPTION>
          Element:
          --------
<S>                              <C>
          Gold                   Not less than 60%
          Silver                 5.0%-10.0%
          Copper                 20.0%-25.0%
          Zinc                   0.0%-1.0%
          Iron                   0.0%-0.1%
          Lead                   Less than 2%
          Arsenic                Less than 0.02%
          Mercury                Less than 0.02%
          Selenium               Less than 0.2%
          Tellurium              Less than 0.1%
          Thorium                Less than 0.02%
          Tungsten               Less than 1%
          Indium                 Less than 0.1%
          Bismuth                Less than 2%
          Antimony               Less than 1%
          Tin                    Less than 1%
          Magnesium              Less than 1%
          Sulfur                 Less than 0.05%
          Radioactivity          None
          Beryllium              None
</TABLE>

Producer does not anticipate, but does not represent or warrant, that there will
be  any  exceedances  of  the  foregoing  elements.

     2.2  Producer  expects,  but does  not  represent or warrant, that the Dore
delivered  hereunder  will  not  contain  a substance or substances in excess of
elements  set  forth  in  section 2.1, which are deleterious to Refiner's normal
refining  process.  If  deleterious substance(s) are present, Refiner may reject
such  shipment  by  giving notice to Producer within two (2) Business Days after
sampling  at  Refinery.  Refiner's  determination  as to the presence in Dore of
substances deleterious to its normal refining process shall, unless unreasonably
made,  be  final  and  binding  for  purposes of this Section 2.2. Refiner shall
furnish to Producer upon request such data supporting Refiner's determination of
deleterious substances as Producer may reasonably request.  Refiner shall return
any  Dore rejected  in  accordance  with  Section 2.1 and Section 2.2 to a point
designated  by  Producer,  and  Producer  shall  bear  the  cost  of freight and
insurance  with  respect to the return shipment.  Provided a JM approved carrier
is  used,  risk  of  loss as to Dore so returned shall remain with Refiner until
such  Dore is  received by Producer or its designated consignee. Producer shall,
within  seven  (7)  days  after  notice  of  rejection,  deliver  to Refiner the
equivalent amount of gold and silver for which payments were received on account
of any shipment rejected by Refiner pursuant to this Section 2.2, or if gold and
silver  is not received within seven (7) days after date of notice of rejection,
Refiner,  unless otherwise agreed by the parties, shall immediately purchase, at
prevailing  market  prices,  those  quantities  of  metals  previously priced or
credited  by  Refiner  but  not delivered by Producer, and Produce shall pay any
difference  due  Refiner  immediately  upon  receipt  of  Refiner's  invoice.

     2.3  REFINER  UNDERSTANDS  AND  AGREES  THAT  PRODUCER MAKES NO WARRANTIES,
EXPRESS  OR  .IMPLIED,  AS  TO  MERCHANTABILITY,  FITNESS  FOR

                                        3
<PAGE>
ANY  PARTICULAR  PURPOSE  OR ANY OTHER MATTER, OTHER THAN THE EXPRESS WARRANTIES
CONTAINED  IN  THIS  AGREEMENT.  NO  REPRESENTATION  OR  STATEMENT NOT EXPRESSLY
CONTAINED  IN  THIS  AGREEMENT  SHALL  BE BINDING UPON PRODUCER AS A WARRANTY OR
OTHERWISE.

     2.4  Refiner  warrants  that  metals  delivered to customer shall be of the
purity  required  for  London Good Delivery. This express warranty is in lieu of
all  other  warranties,  express or implied, arising by law or custom, including
without  limitation  the  IMPLIED  WARRANTY  OF  MERCHANTABILITY and the IMPLIED
WARRANTY  OF  FITNESS  FOR A PARTICULAR PURPOSE. PRODUCER UNDERSTANDS AND AGREES
THAT  REFINER  MAKES  NO  WARRANTIES, EXPRESS OR IMPLIED, AS TO MERCHANTABILITY,
FITNESS  FOR  ANY PARTICULAR PURPOSE OR ANY OTHER MATTER, OTHER THAN THE EXPRESS
WARRANTIES  CONTAINED  IN  THIS  AGREEMENT.  NO  REPRESENTATION OR STATEMENT NOT
EXPRESSLY  CONTAINED  IN  THIS  AGREEMENT  SHALL  BE  BINDING  UPON REFINER AS A
WARRANTY  OR  OTHERWISE.

     Refiner's sole liability for breach of the above-described express warranty
shall be limited to replacement of non-conforming metals with metals meeting the
purity  specifications described herein. This liability is, however, conditioned
upon  Producer  giving  written notice of such non-conformance to Refiner within
thirty  (30)  days  after  shipment  of  metals  to the destination specified by
Producer.  Where  the  metals are replaced by Refiner, Producer shall return the
non-conforming metals to the Refinery freight, insurance and other similar costs
prepaid  by  Refiner.  Producer  shall  have  the  risk  of loss on the returned
non-conforming  metals  until  receipt  of  such  metals  at  the  Refinery.

     2.5  The  Dore delivered pursuant to this Agreement shall be in the form of
ingots  from  400  to  1200 Ounces in weight and shall be packaged in containers
suitable  for  transportation  by  armored  carrier.

                                    ARTICLE 3
                                    Quantity
                                    --------

     3.1  Producer  shall  deliver  to Refiner during the term of this Agreement
one  hundred percent (100%) of the Dore actually produced and delivered from the
Mine.

                                    ARTICLE 4
                                Term of Agreement
                                -----------------

     4.1  Subject to Article 12, this Agreement shall continue in effect through
December 31, 2005, and, at the option of Producer with not less than thirty (30)
days  advance  written  notice  to  Refiner, shall continue through December 31,
2006.

                                    ARTICLE 5
                                    Delivery
                                    --------

     5.1  Producer shall arrange for transportation of the Dore from the Mine to
the Refinery at it's cost. All risk of loss and damage to the Dore shall pass to
the  Refiner  upon  receipt  at  it's  Salt  Lake  City  plant.

                                        4
<PAGE>
     5.2  No  later  than the Actual Date of shipment, Producer shall furnish to
Refiner  shipping  documents  with  the  following  information  with respect to
shipment:

          (i)       the number of packages of boxes;
          (ii)      the number of ingots;
          (iii)     the net weight of each ingot;
          (iv)      the total estimated gold content of shipment in Ounces;
          (v)       the total estimated silver content of shipment in Ounces;
          (vi)      the estimated  date  and  time  of  arrival at the Sampling
                    Facility;
          (vii)     the  name  of  Producer's  representative;
          (viii)    such  other  information relating to the shipment as Refiner
                    may  reasonably  request.

      5.3  On  or  before  the  Actual Date of Shipment, Producer, shall send to
Refiner  by  facsimile,  a  certificate  showing  the  following:

          (i)       the  provisional weight, including the number of ingots, the
                    net  weight  of  each ingot and the total gross weight, tare
                    and  net  weight  of  the  shipment;  and
          (ii)      the  Producer's  provisional  assay showing the gold and the
                    silver  content  of  the  Dore as  ascertained  by Producer.

     On  or before the Actual Date of Shipment, Producer shall notify Refiner of
the  provisional  invoicing  date, if any, and shall promptly send to Refiner by
facsimile  such  data.

     5.4  Shipments  of  Dore hereunder  to Refiner shall be made by Producer as
anticipated  in  Sections  3.1 and 5.1, subject to actual production of the Mine
and  the  availability  of  shipment  hereunder.

                                    ARTICLE 6
                                    Ownership
                                    ---------

     6.1  Except  to the extent set forth in this Agreement, title to Producer's
Ingots  (as  defined  herein)  and  precious minerals therein shall at all times
remain  with Producer. Refiner is a bailee and shall not and does not take title
to  or  have any rights (whether ownership or otherwise) to Producer's ingots or
the  Accountable  Gold and Silver produced therefrom ("Producer Ingots"), unless
expressly  set  forth  herein  or  otherwise  agreed  in writing by the parties.

     6.2  Refiner is providing a service to Producer for a fee. No aspect of the
matters covered hereby shall constitute a consignment or otherwise be subject to
Article  9 of the Uniform Commercial Code. For precautionary purposes, however ,
Refiner  grants  to  Producer  to  the  extent available under applicable law, a
security  interest  in:  (i)  all  Dore delivered by or on behalf of Producer to
Refiner  pursuant  to  this  Agreement;  (ii)  all  Producer  Dore in process at
Refiner's  facility,  whether  or not commingled; and (iii) all Accountable Gold
and  Silver  refined  from  Producer's Dore, including such refined metal as may
from  time  to  time be held on account for Producer, excluding Accountable Gold
and  Silver  purchased  by  Refiner  from  Producer.

                                        5
<PAGE>
Producer will be responsible for perfecting the security interest granted above.
In  this  regard, Refiner will execute and deliver such Financing Statements and
other  documents  as  Producer  may  reasonable  request  in order to perfect or
protect  the  security  interest  granted  in  this  section.

     6.3  Producer  may  ask for a physical return of the gold and silver in its
shipments  and  can request that the ingots be shipped by Refiner to Producer or
to  such persons as Producer shall designate from time to time and Refiner shall
have no interest therein or to the amounts paid or payable from such disposition
of the Producer ingots. A mutually agreed additional cost will be applied to the
ounces  of  gold  and  silver  delivered  under  this  clause.

                                    ARTICLE 7
                                    Insurance
                                    ---------

     7.1  Refiner  shall  have adequate insurance for each shipment of Dore upon
delivery  of  the  Dore to it's refinery by the Producer and shall continue such
insurance  coverage  until  the  occurrence  of  the  credit  to Producer's or a
designated  third  party's  Unallocated Metal Account as set forth in Article 8.

     7.2  The  Refiner  covenants  and  agrees  to conduct its refining business
related'  to  the  processing  of  Producer's  material  in  compliance with all
applicable  environmental  statutes,  laws,  ordinances, rules, and regulations.

     7.3  To  the extent any hazardous substances, hazardous waste, contaminants
or  pollutants  are  generated  from  refiner's refining of Producer's material,
Refiner  covenants,  and agrees that it is solely responsible for the management
and  disposition  of such hazardous substances, hazardous waste, contaminants or
pollutants.  The  Refiner further covenants and agrees that it shall not allege,
assert  or  contend that Producer is an owner, operator, generator, transporter,
treater, storer, or disposer of, or to have arranged of r disposal or treatment,
or  arranged  with  a  transporter  for  transport  for disposal or treatment of
hazardous substance or hazardous waster located on or generated at the Refiners.
Refiner  further agrees to indemnify, defend and hold harmless the Producer, and
its  subsidiaries  and  affiliates,  and further agrees to indemnify, defend and
hold  harmless  the  Producer,  and  its  subsidiaries and affiliates, and their
directors, officers, employees, agents and assigns, from and against any and all
claims  arising  from or related to (i) the actual or alleged presence, release,
threatened  release,  discard or emission of any hazardous substances, hazardous
waste,  contaminants  or pollutants of any kind into the environments at or from
the  Refinery  or  any  other location at which Refiner performs its obligations
under  this  Agreement,  including any and all claims arising from or related to
the  study,  testing,  investigation,  cleanup, removal, remediation, abatement,
response,  containment,  restoration  or  corrective  action  of  any  hazardous
substances,  hazardous  waste,  contaminants  or  pollutants of any kind (A) on,
beneath  or above the Refinery, or (B) emanating or migrating, or threatening to
emanate  or migrate, from the Refinery or any off-site properties as a result of
Refiner's  services  provided  under this Agreement; and (ii) the on or off-site
treatment,  storage  or  disposal  of  hazardous  substances,  hazardous  waste,
contaminants  or pollutants generated by Refiner in connection with the services
provided  under  this  Agreement.

     7.4  The  provisions  of  Section  7.3  shall  survive  termination of this
Agreement

                                        6
<PAGE>
                                    ARTICLE 8
                  Refining of Gold/Silver; Crediting of Account
                  ---------------------------------------------

     8.1  For  each  shipment  of  Dore,  Producer  shall give Refiner notice as
required  in  Section  5.3  on  or before the Actual Date of Shipment.  Producer
shall  then  notify  Refiner  of  the  quantity  of Gold for such shipment to be
credited  to Producer's or a designated third party's Unallocated Metal Account,
which  credit(s)  shall  occur  on the Settlement Date (hereinafter "Provisional
Settlement"), subject to Section 8.3.  The Provisional Settlement shall be in an
amount  up  to  that  equal  to 100% of the Producer's Provisional assay of gold
content  for  each  shipment.

     8.2  Producer  shall pay Refiner a refining charge for each shipment in the
amount of US $0.60 per Ounce of Dore delivered to Refiner. Refiner's invoice for
services  under  this  agreement  should  be  sent  to  the  Producers  Mine
Administrative  offices  for  payment.

     8.3  If  upon determination of final weights and assays pursuant to Article
10,  with  respect  to  any  shipment, the final number of Ounces of Accountable
Gold/Silver  content  exceeds  the  number  of  Ounces provisionally credited by
Refiner  to  Producer pursuant to Section 8.1, then within two (2) Business Days
Refiner  shall pay to Producer an amount calculated by multiplying the number of
Ounces  of  the  excess  times  the London Gold/Refiner Noon Silver Price on the
Settlement  Date.  If,  with respect to any shipment, the final number of Ounces
of  Accountable  Gold/Silver  is  less  than  the number of Ounces provisionally
credited  by  Refiner pursuant to Section 8.1, Producer will reduce the quantity
of  gold  to be credited from the next available shipment to cover the shortage.

     8.4  Fractions of any Ounce of Accountable Gold/Silver shall be settled pro
rata.  Fractions  of  any  Ounce  of  gold/silver  shall  be calculated to three
decimal  places.

     8.5  Any  payments  hereunder  shall  be  made  on  the due date thereof in
immediately  available funds the wire transfer to a bank account or accounts, as
the  case may be, designated by the party or parties receiving payment.  Charges
of the bank making payment shall be for the account of the party making payment,
and  charges of the bank receiving payment shall be for the account of the party
receiving  payment.

                                    ARTICLE 9
                         Weighing, Melting and Sampling
                         ------------------------------

     9.1  Weighing  and sampling shall be carried out by Producer at its expense
at  the  Mine  and  by Refiner at Refiner's expense at the Refinery in each case
with  reliable  modern  equipment.

     9.2  Refiner  shall  be  entitled  to  have  not  more  than two of its own
representatives  present  or  to be represented at its own expense by a mutually
agreeable  independent  weigher  and sampler at the weighing and sampling at the
Mine.  Producer  shall  be  entitled  to  have  not  more  than  two  if its own
representatives  present  or  to be represented at its own expense by a mutually
agreeable  independent weigher and sampler at the weighing, melting and sampling
at  the  Sampling  Facility.  Each  party's  consent  to  a  mutually  agreeable
independent  weigher and sampler shall not be unreasonably withheld, conditioned
or  delayed.

                                        7
<PAGE>
     9.3  Producer  or  its  representative shall, subject to Refiner's facility
rules, including safety and security, be free (a) to enter the Sampling Facility
during  business  hours  (or  as  otherwise mutually agreed) when the operations
described  in  Article  10  are  being  carried out, (b) to inspect the Sampling
Facility's  weighing,  melting,  sampling  and  other  facilities  used  in such
operations  and  to  make  such  other  examinations  thereof as s/he shall deem
appropriate  and  (c)  to  be  present  at  the  weighing,  melting and sampling
(including cutting and shipping of samples) of each shipment; provided, however,
that  s/he  shall  not  unreasonably  interfere  with  the  Sampling  Facility's
operations.  Producer  shall  give  Refiner  notice  of  the name and address of
Producer's  representative,  and notice of any change therein, and Refiner shall
give  Producer  reasonable  notice  of  the  time  and  date when the operations
described in Article 10 are to be carried out by the Refiner with respect to any
shipment.  It  is  understood  that  the  representative  of  Producer  shall be
permitted to be present at the Sampling Facility and act in the manner described
in  this  Section  9.3  only  if and when material supplied by Producer is being
processed.  If  the  representative appointed by Producer does not appear at the
Sampling Facility at the time designated by Refiner for the melting and sampling
of  Dore,  all  rights to have such Producer's representative present are waived
for  that  particular  shipment.

     9.4  The  weight  after melting and sampling, including weight added from a
remelt  of  slags  of  each sample, as determined at the Sampling Facility shall
govern for purposes of the final settlement of the lot from which the slags were
generated.  b)  for Producer to be disposed of in accordance with instruction of
Producer  at  a  time  and  in a manner agreed by both parties, with the expense
incurred for such disposal for Producer's account.  Slags shall be maintained in
segregated  containers.

     9.5  Within  a  reasonable time after Refiner receives Dore at the Sampling
Facility,  the  Dore shall  be  weighed, assigned a control number, and formally
acknowledged by a written statement showing the weight and control number.  This
statement  shall  be  forwarded  to  Producer  at  the address specified in this
Agreement.  Within  three  (3)  Business  Days  after the Date of Arrival at the
Refinery,  the Dore will be melted to homogenize it and the melt sampled for the
purpose of assay and Producer will have the right to be represented as set forth
in  Section  8.3  Refiner shall immediately forward samples taken for Producer's
analysis as set forth in Article 10.3 by courier to Producer's laboratory at the
Producer's Mine Administrative Office. Weights at the Refinery shall be taken as
final  and  used  for  purposes  of  determining  the  final settlement value of
Accountable  Gold  and  Silver.

                                   ARTICLE 10
                                     Assays
                                     ------

     10.1  Assays  for  the gold and silver content of Dore shall be carried out
independently  by the assayers of Producer and Refiner from the samples obtained
at  the  Sampling  Facility  as  provided  in  Article  9.

     10.2  Assays  shall  be made by Refiner and Producer promptly after Dore is
sampled at the Sampling Facility from samples obtained as provided in Article 9.
Results  of  such assays shall be exchanged simultaneous by Producer and Refiner
by  crossing  registered  airmail,  or by facsimile copy, on a date to be agreed
upon  but  not  later  than  the  tenth  Calendar Day after samples taken at the
Sampling  Facility  are  received  by  Producer.  Should  the difference between

                                        8
<PAGE>
the  results exchanged be not more than 0.5/1,000 (zero point five (5) parts per
thousand)  for  gold,  2.5/1,000  (2.5  parts per thousand) for silver, then the
arithmetic  mean  of the results of Refiner and Producer shall be taken as final
for  purposes  of determining the final settlement value of Accountable Gold and
Silver.  The  splitting  limits  shown  in this Section 10.2 shall be subject to
change  by  mutual  agreement  of  the  parties.

     10.3  Melting,  Weighting  and  Sampling.  Once  received  at  the Sampling
           ----------------------------------
Facility,  Dore will be unpacked with Producer's representative attending.  Dore
received  will  be melted in a crucible furnace and kept segregated from and not
commingled  with  Dore of  other  producers.  The  furnace's  crucible  shall be
dedicated to Producer's use only and shall be placed in a drum at the conclusion
of  sampling  and  sealed  for future use.  The Dore will be melted in loss of a
quantity  mutually  agreed.  While  in  a molten state the Dore shall be sampled
with  a pin tube according to the Refiner's standard procedure.  The sample will
be  split  into  five  parts,  one  for  Producer's  analysis, two for Refiner's
analysis,  one  held  by  Refiner for umpire analysis and one held by Refiner as
reserve.

     Any  slags  produced  and recovered or floor sweepings from the vicinity of
the  furnace  and  bar molds shall be segregated, sealed and retained by Refiner
for  future  disposition  as  instructed  by  Producer.

     10.4  Assaying.  Assays  will  be performed by both parties and all umpires
           --------
using the fire assay method, corrected basis.

     10.5  Umpire.  If  the  difference  between  the assays is greater than the
           ------
amounts shown in Section 10.2, at the request of either party:

          (a)  A.H.  Knight  Laboratories

               130  Tradd  Street
               Spartanburg,  SC  29304
               Phone:  864-595-1903
               Fax:     864-595-1627

          (b)  Ledoux & Co., Inc.

               359  Alfred  Avenue
               Teaneck,  NJ  07666
               Phone:     201-837-7160
               Fax:     201-837-1235

          (c)  Umpire & Control Services Inc.

               150-(A)  Lamar  Street
               West  Babylon,  NY  11704
               Phone:     516-491-3511
               Fax:     516-491-3506

                                        9
<PAGE>
or  other  mutually  agreed  assayers  shall  act as umpire assayers in rotation
shipment  by  shipment.  The  umpire  shall  not be the representative of either
party.  As  promptly  as  practicable  after  the signing of this Agreement, the
parties  shall  use  their  best  efforts  to  agree  on  a  list of alternative
internationally recognized umpire assayers.  If such list is agreed upon, either
party  shall  have the right by giving notice to the other to disqualify any one
or  more  of the umpire assayers designated in this Section 10.5 (but not to the
before  such  umpire has acted hereunder) and to substitute therefore one of the
alternative  umpire assayers shown on such list; provided, however, that neither
party may exercise the right to disqualify an umpire assayer at any time when no
alternative  umpire assayer remains on such list.  Whenever an umpire assayer is
disqualified  and  an alternative umpire assayer is designated to act hereunder,
the  parties shall use their best efforts to agree on a new assayer to be placed
on  such  list  of  alternative  umpire  assayers.

     10.6  If  the  assay  results  of  the umpire shall be the mean between the
results of Producer and Refiner, the umpire's results shall be final and binding
on  both  parties  for  purposes  of  determining  the final settlement value of
Accountable  Gold  and Silver.  Otherwise, the results of the assay of the party
whose  results  are  nearer  to  that  of  the umpire's assay shall be final and
binding  on  both parties for purposes of determining the final settlement value
of  accountable  Gold  and  Silver.

     10.7  The  costs  of  the  umpire's assay shall be borne by the party whose
assay  is  further  from  that  of  the  umpire.

     10.8  The costs of the umpire's assay shall be borne equally by the parties
if  the  umpire's assay shall be the mean between the assays of the two parties.

                                   ARTICLE 11
                                Taxes and Duties
                                ----------------

     11.1  Producer  shall be responsible for the payment or satisfaction of any
and  all  taxes,  duties, or other governmental fees or charges imposed upon the
transactions  contemplated  by  this  Agreement  by  any government or political
subdivision  thereof,  including  but not limited to turnover, sales, use, gross
receipts  or  similar  taxes  (but excluding income, excess profit, franchise or
other  taxes  imposed  upon  the  business  activities  of  Refiner).

                                   ARTICLE 12
                                   Termination
                                   -----------

     12.1  Either  party (the "Terminating Party"), at its option, may terminate
this  Agreement, without penalty or cost, with respect to any or all of the Dore
to  be delivered hereunder by giving the other party (the "Other Party") written
notice,  effective  upon delivery, at any time after the Other Party (if Refiner
is  the  Terminating Party, then Producer is the Other Party, and if Producer is
the  Terminating  Party,  then  Refiner  is  the  Other  Party)  (a) commences a
voluntary  case  or  proceeding  under any applicable bankruptcy, insolvency, or
other  similar  law, (b) applies for or consents to the appointment of or taking
possession  by  a  receiver,  trustee or liquidator of itself or any substantial
part  of  its property, (c) fails generally to pay its debts as they become due,
or  (d)  makes  a  general assignment for the benefit of creditors; or corporate

                                       10
<PAGE>
action  is taken by it for the purpose of effecting any of the foregoing, or (e)
without  the  application,  approval  or consent of the Other Party, there shall
have  occurred  entry  of  a  decree or order for relief by a court of competent
jurisdiction  in  respect  of  such Other Party in an involuntary case under any
applicable bankruptcy, insolvency or other similar law, or appointing a trustee,
receiver,  liquidator  or  the  like  of  such  Other  Party  or  of  all or any
substantial part of its assets, or ordering the winding-up or liquidation of its
affairs,  and, if such proceeding is being contested by such Other Party in good
faith,  the  same  shall  continue undismissed, or pending and unstayed, for any
period  of  90  consecutive  days.  Such  termination shall not affect any prior
claim  against  the  Other  Party that the Terminating Party may have under this
Agreement.

     12.2  Notwithstanding  any  other provision in this Agreement, in the event
that  either  party hereto shall materially default in the performance of any of
its  duties  or  obligations hereunder, which default shall not be substantially
cured  within  thirty  (30) days after written notice is given to the defaulting
party  specifying  the  default, or, with respect to those defaults which cannot
reasonably  be cured within thirty (30) days to commence curing such default and
thereafter  to  proceed  with  all due diligence to substantially cure the same,
then  the  party  not  in  default  may, by giving written notice thereof to the
defaulting  party,  terminate  this  Agreement  as of the date specified in such
notice  of  termination.  Such  termination  shall  not  affect any prior claims
against  the  defaulting party that the non-defaulting party may have under this
Agreement.

     12.3  In  the  event  of  termination  for any reason, the parties agree to
fulfill  their  obligations  incurred  prior  to  terminate  of  this Agreement.

                                   ARTICLE 13
                                     Notices
                                     -------

     13.1  Except  as otherwise expressly provided herein, all notices, requests
and  other documents or communications required or permitted by any provision of
this  Agreement  shall be sufficiently given or transmitted if delivered by hand
or  by  pre-paid  registered  airmail, telefax (with a confirmation delivered by
pre-paid registered airmail) or recognized private courier service and addressed
as  follows:

          (i)  in the case of Refiner, to it at:

               Johnson  Matthey,  Inc.
               4601  West  2100  Smith
               Salt  Lake  City,  UT  84120
               Phone:  801-972-6466
               Fax:     801-973-7313

               With  copy  to:

               Johnson  Matthey,  Inc.
               460  East  Swedesford  Road,  Suite  2000
               Wayne,  PA  19087
               Attn:  Vice  President  &  General  Counsel

                                       11
<PAGE>
          (ii) in  the  case  of  Producer,  to  it  at:

               CORPORATE  OFFICE:
               Western  Goldfields  Inc.
               961  Martley  Lane,  Suite  120
               Reno,  NV  89502
               Telephone:    775-337-9433
               Fax:          775-337-9441

               MINE  ADMINISTRATIVE  OFFICE:
               Western  Goldfields  Inc.  Mesquite  Mine
               6502  East  Highway  78
               Brawley,  CA  92227
               Att.  General  Manager
               Telephone:    928-341-4653
               Fax:          928-341-0041

or  at  such  other  address(es)  as may be designated in writing by Producer or
Refiner  as  the case may be, as the proper address to which such communications
shall  be  mailed or delivered to it.  No such notice or request shall, however,
become  effective  until the date of receipt thereof by the party to which it is
addressed.

                                   ARTICLE 14
                                   Assignment
                                   ----------

     14.1  Neither  party  may  assign  this Agreement without the prior written
consent  of  the  other party, which consent shall not be unreasonably withheld.

                                   ARTICLE 15
                                  Governing Law
                                  -------------

     15.1  The  validity, enforceability and performance of this Agreement shall
be governed by and construed in accordance with the laws of the Sate of Utah (as
if  this  Agreement  were  to  be  performed  wholly  within  such  State).

                                   ARTICLE 16
                                   Arbitration
                                   -----------

     16.1 Al claims and controversies (other than a claim or controversy subject
to  final settlement pursuant to the expressed provisions of Article 10) arising
out  of  or  in  connection  with  this Agreement, or the breach thereof, at the
request  of  a  party,  may be finally settled under the commercial rules of the
American  Arbitration  Association  by  one  neutral  arbitrator,  if said rules
provide  a  mechanism  for appointing one neutral arbitrator, otherwise by three
arbitrators  appointed  in  accordance  with  said  rules.  The  arbitration
proceedings  shall  take place in Salt Lake City, Utah and shall be conducted in
the  English  language.  Judgment  upon the award rendered may be entered in any
court  having jurisdiction or application may be made to such court for judicial
acceptance  of  the  award and an order of enforcement, as the case may be.  The

                                       12
<PAGE>
parties  hereby  consent  to the exclusive jurisdiction of the federal and state
courts  located  in  the  State  of  Utah  for  all  purposes of this Agreement.

                                   ARTICLE 17
                                  Miscellaneous
                                  -------------

     17.1  It  is  expressly  understood  an  agreed that Producer's obligations
hereunder  relate  only  to  Dore  actually  produced by it at the Mine and that
Producer  may  from  time to time suspend production at the Mine for purposes of
maintaining, modifying or expanding its production facilities and may suspend or
terminate  production because continued production would, in Producer's opinion,
be uneconomical or impracticable.  Producer shall promptly notify Refiner of any
such  suspension  or  termination.

     17.2  In  the event of any fire, explosion, earthquake, storm tidal wave or
similar  disturbance,  flood  drought,  accident,  breakdown  of  machinery  or
facilities,  transportation  or  handling  difficulties,  strike,  lockout,
combination  of  workers  or  other labor difficulties, war, insurrection, riot,
terrorism embargo, act of God or the public enemy, law, act order, proclamation,
decree,  regulation,  ordinance,  instruction  or request of government or other
public  authorities,  federal,  state, local or foreign, judgment or decree of a
court  of  competent  jurisdiction,  delay  or  failure  of  usual  carriers  or
contractors,  labor  shortage  or  inability  to obtain raw materials, operating
materials,  plant equipment or materials required for maintenance or repairs, or
any contingency or delay or failure or cause of any nature beyond the reasonable
control  of  Producer  or Refiner, whether or not the kind hereinabove specified
(any  such  event being hereinafter called "force majeure"), preventing Producer
or  Refiner  from  performing  its  respective  obligations  hereunder,  then
performance hereunder by both parties shall be suspended during such time to the
extent  affected by such force majeure.  The party affected by any force majeure
shall  promptly  give written notice to the other party of the occurrence of any
force  majeure, and of the termination of such force majeure.  The parties shall
cooperate  to  mitigate  the  effects  of  any  such  force  majeure.

     17.3  If  any  payment  of  monies to be made by Producer or Refiner to the
other  pursuant  to  this Agreement shall not be made on or before the date such
payment  is due and payable in accordance with the provisions of this Agreement,
the  party  who shall be liable for such payment shall also pay interest on such
late payment calculated from the date such payment calculated from the date such
payment  was  due  and  payable  through the date such payment is made at a rate
equal to the lower of (a) the prime commercial lending rate of Citibank N.A. for
loans in the state of Utah in effect from time to time (such rate to be adjusted
simultaneously  with  each  change  in  such  prime commercial lending rate) and
calculated  on the basis of a 365 day year and (b) the maximum rate permitted by
applicable  law  in  the  State  of  Utah.

     17.4 Neither Refiner nor Producer shall be liable for indirect, incidental,
special  or  consequential  damages  arising  from any breach of this Agreement.
Notwithstanding  any  provision  to  the  contrary  herein,  Refiner's  maximum
aggregate liability in respect of any shipment of Dore received pursuant to this
Agreement  will  not exceed the value of a quantity of fine gold and fine silver
equal  to  the Accountable Gold and Accountable Silver in such shipment.  Except
as  provided  in  Section 2.4, Producer's maximum aggregate liability in respect
of  any

                                       13
<PAGE>
shipment  of  Dore  shipped  pursuant to this Agreement will not exceed ten (10)
times  the  Refinery  fees  chargeable  in  respect  of  such  shipment.

     17.5 Neither this Agreement nor any term or provision hereof may be waived,
changed,  discharged  or terminated except by an instrument in writing signed by
the  party  against  whom  the  enforcement  of any waiver, change, discharge or
termination  is  sought.

     17.6 This Agreement may be executed in any number of counterparts, and each
of  such counterparts shall for all purposes be deemed to be an original and all
of  such counterparts shall together constitute but one and the same instrument.

     17.7 This Agreement sets forth the entire understanding of the parties with
respect  to  the  subject  matter hereof, and supersedes all prior negotiations,
understandings,  and  agreements  between  the  parties hereto whether verbal or
written.

     17.8  In  the  event  any term or provision of this Agreement shall for any
reason  be  illegal, invalid or unenforceable in any respect, such illegality or
unenforceability  shall  not affect the validity of any remaining portions which
shall remain in full force and effect as if the invalid portion was never a part
of  this  Agreement  when  it was executed.  Should the severance of any part of
this Agreement materially affect any other rights and obligations of the parties
hereunder,  the  parties  hereto  will  negotiate  in  good  faith to amend this
Agreement  in  a  manner satisfactory to the parties.  Failing agreement on such
amendment,  either  party  may  by  notice  in  writing terminate this Agreement
forthwith  subject  to the provisions of this Agreement relating to termination.

     IN  WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

               PRODUCER

               Western  Goldfields  Inc.

               By:___________________________
               Title:________________________

               REFINER

               Johnson  Matthey  Inc.

               By:___________________________
               Title:________________________

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<PAGE>

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