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Santiago Mining Company Response <br /> Page 2 <br /> August 21, 2016 <br /> 10. Because of the narrow working area of the construction site and close proximity to US Forest <br /> ground and using Best Management Practices,the application of the 12 ton end dump truck will <br /> be to transport and stockpile excavated material to the north end of the Santiago#1 for further <br /> use. <br /> 11. Drill rig to be used is a longyear 34 drill. <br /> 12. There is no known ground water in the area of the Santiago ore body or drill site. The drill <br /> hole will not penetrate any aquifers or flooded ports of the mine. See Longitudinal Map#2 <br /> 13. The drill hole is confined to the lower area of the Santiago ore shoot and will not cause any <br /> adverse impacts to ground water quality. See Longitudinal Map#2 and oblique sketch <br /> 14. Sorry for the confusion that the data presented in reference to the Santiago 5th Level has <br /> caused. There are no records of the 5th Level or any level having a water flow from their adits. <br /> The Santiago does not produce any water. This information was produced from the 1980's, when <br /> the opening of the 5th Level was activated and the possibility of water being contained in the <br /> lower levels that would have to be pumped in order to rehabilitate the 5th wine and to resume <br /> mining at these levels. <br /> The attachments presented previously were only an attempt to show the relative distances of <br /> drilling operations to storm water and a natural settling pond. All storm waters end up in the <br /> natural pond. The photo shows mill sands. All waters will then travel and be naturally filtered <br /> through the glacial moraine as leached ground water. <br /> If future activities are resumed at these levels, appropriate water studies will be needed if <br /> pumping or water discharge permitting is necessary. Again,this data was an attempt just to show <br /> distances to the head waters of Leavenworth Creek. <br /> 15. The drill angle will side step the 501 Level wine and penetrate the Santiago vein 120 ft. <br /> below the 7th Level or lower workings. See Confidential Exhibits. <br /> 16. The drill pad will not be revegitated; however, any designated areas to be backfilled will be <br /> done so with a minimum of 2 classified layers or lifts, allowing top soil clays to be spread. This <br /> medium will allow for natural reseeding. Photos are available showing the recovery of wild <br /> flowers, grasses and native plants at the 5th Level during a 5 year timeline. In addition, according <br /> to Best Mining Practices, any materials to be moved or stockpiled will be stored in areas free of <br /> vegetation,will not be placed in line of any subsidiary storm water runoff areas, and will not <br /> encroach on US Forest land or endanger any last strongholds of picas,marmots or any nesting <br /> bird species of the East Argentine. <br />