In 2010, Aggregates USA Sparta LLC ("AUSA"), the lease holder for the Granite Hill property, advised Erdene that it is planning to make the Granite Hill (Sparta Quarry) Aggregate Project one of its top priority developments. In the second half of 2010, construction at the quarry was started and included clearing of the property for the processing plant, rail load-out and quarry area. An aggregate plant capable of producing up to 2.5 million tonnes has been constructed and is producing railroad ballast and base material for on-site use. The site has a 90-car rail siding linked to the CSX railroad; commercial production will commence in late 2011. Erdene will receive an industry competitive royalty based on sales.
