UPDATE: TUESDAY, SEPTEMBER 2, 2008

POWER

After a long wait to get the transformer and then the time it takes to install power poles, we finally activated the power (Figure 1) at the mine site on Thursday August 28, 2008. The power-up process started at 6 a.m. and by 2 p.m. we were testing secondary power to the individual pieces of equipment. Start-up was smooth and there were absolutely no glitches in the system.

Figure 1: Substation Being Activated

With the activation of the substation there will be no need to use generators for the crushers, conveyors or stacker seen in the background of the substation in Figure 2.

Figure 2: Operating Facilities at the Mine

BELTING

This past week has been spent putting belts on all of the conveyors systems at the site. This has been a huge task as all of the belts have to be vulcanized once they are stretched over the systems. Belting was installed in the tunnel under the stockpile (Figure 3), and to the main conveyor system for the load-out facility. With secondary power now in place, these should be operational later this week.

Figure 3: Stockpile Tunnel Conveyor System

CRUSHING

Installation of the 84-inch primary crusher was completed this week (Figure 4) as the final springs were installed and the support wall completed.

Figure 4: 84-inch Primary Crusher

The crushing pad is now being built behind the crusher (Figure 5) where the run-of-mine ore will be dumped from the mine prior to crushing.

Figure 5: Building Pad Behind Crusher

TIPPLE

The top section of the tipple, which measures 23-feet in diameter, was moved on Friday August 29, 2008 from Gilbert’s Crusher manufacturing facility 40 miles south of the mine to our site. Figures 6 and 7 show the top section being put into place.

Figure 6: Lifting the Top Section of the Tipple Into Place

Figure 7: Top Section In Place

Figure 8 shows the entire tipple structure in-place and ready to be welded and painted. The control equipment will have to be installed and the tipple will not be fully functional until the end of September. Note the feed conveyor system the background. Rail will also have to be installed under the tipple along with the weigh-scale.

Figure 8: Entire Installed Tipple Structure

ANNUAL GENERAL MEETING

Just a reminder that the annual general meeting of Palladon Ventures Ltd. will be held September 17, 2008 at our offices in Salt Lake City, Utah. If you are planning on attending, or wish to tour the mine on September 18, 2008 in Cedar City, please send an email to info@palladonventures.com.