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At present time, there are no monitoring systems necessary as there is no risk from chemicals <br />and compounds known to exist, thus no need for containment or redundant systems. <br />8 GROUNDWATER INFORMATION <br />The project site is located near the top of the north side of Mineral Hill, within a volcanic vent <br />structure that forms the general Cripple Creek District. The district, through the use of drainage <br />tunnels, has resulted in a depressed groundwater surface within and adjacent to the vent. The <br />district is currently being drained by the Carlton Tunnel which discharges at Marigold, at an <br />approximate elevation of 6,900 feet. This discharge elevation is approximately 2,900 feet <br />below the surface of the permit area, and based on available site - specific information, the <br />groundwater surface within the permit area is no less than 300 feet below the surface. The <br />permit area and area adjacent to it contains no perennial streams, no surface water, or <br />retention ponds. A review of the Well and Watercourse Map shows that there are no perennial <br />streams located within two miles of the permit area, and no closer than 6 stream miles. <br />The ground surface on the north side of Mineral Hill drains northward towards Spring Creek, a <br />west - flowing intermittent stream that runs in the spring and during storm events. The permit <br />area is located wholly with a Tertiary lithic tuff unit of phonolitic composition that fills the <br />ancient volcanic vent. This unit is surrounded by various Precambrian units varying from <br />intrusives to metasediments which are dominantly composed of gneisses and schists. No <br />mining is anticipated in any other rock unit except the lithic tuff. <br />Veining and intrusive dikes within the tuff unit tend to follow preferred structural directions <br />that are prominent in the district, and rock - forming dykes and the flow directions of ancient <br />fluids tend to mimic these features. The dykes can take the form of vertical tabular features or <br />can exhibit themselves as tabular and concordant features. Prior to mining in the district, these <br />features tended to control and direct groundwater flows. Following installation of the drainage <br />tunnels, the groundwater surface has dropped in elevation and groundwater no longer <br />occupies these structures at the elevations where mining is anticipated to occur. The <br />subsurface water will still be controlled by whatever geological structures might be found a few <br />hundreds or thousands of feet below the current exploration area and any subsurface flows <br />generated within the permit area will be to the south, against local topography, to move <br />toward the center of the vent structure. Based on the data collected, and on the current <br />exploration and eventual mining plans, the operation is not anticipated to intercept <br />groundwater. <br />5 <br />