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Ouray Silver Mines Inc. <br /> Technical Revision 09 February 1, 2017 <br /> personnel will also aid in dismantling old buildings and structures in preparation for the new <br /> buildings and additions. <br /> 5.5 Sale of Waste Rock and Tailings Blend <br /> The construction and implementation of selling a waste rock and tailings blend for road use <br /> begins with the identification of the appropriate blend as described in Section 4.3. However,the <br /> testing cannot begin until the mill is operational because of a lack of material. Once the blend <br /> has been deemed inert, as indicated by SPLP results that are at or below the Permit specific <br /> groundwater standards, it would be considered salable. <br /> 6 Operation <br /> Operational considerations of each proposed change are discussed in this section. <br /> 6.1 Mill Upgrades <br /> The concentrator plant at OSMI will process on average approximately 250 tons per day.The plant <br /> will operate twenty-four hours per day seven days per week, except for maintenance <br /> (approximately 2 days per month) and upset conditions. Each shift will be supported with <br /> supervision and an operating crew of roughly five people. <br /> Ore from the mine is received in the coarse ore bin and is processed in the crushing plant reducing <br /> size down to roughly 3/4 inch product. Final product from the crusher is received by the rod mill <br /> where the ore will be ground into a slurry in preparation for the ball mill circuit. The ball mill <br /> circuit will grind the ore further in preparation for rougher flotation. All slurry from the ball mill <br /> will report to the lead rougher flotation circuit where a rough lead concentrate will be produced. <br /> Tails from the lead rougher circuit will report to the zinc rougher flotation circuit. Concentrate <br /> from the lead rougher circuit will report to the lead cleaner circuit for further cleaning to increase <br /> final concentrate grade. The zinc circuit will work in the same fashion as the lead circuit. Final <br /> concentrates produced from both the lead and zinc circuit will report to concentrate thickeners, <br /> one for lead concentrate and one for zinc concentrate. The thickeners are utilized to thicken the <br /> slurry prior to the filter press stage. Over flow from the thickeners flows to an overflow tank,this <br /> water will be treated and discharged as described in the Mill Water Treatment and Discharge <br /> sections of this document. The filter press units will convert the slurry to a semi dry filter cake <br /> containing very low moisture content. The concentrate is then bagged in supper sacks and <br /> marketed for sale. The water removed from the concentrate is sent back to each of the thickeners. <br /> Final tailings from the zinc circuit will report to a tailings thickener for water recovery and slurry <br /> thickening prior to reporting to the filter press units. The slurry from the filter press units will be <br /> converted to semi dry filter cakes containing very low moisture content. The filter cakes will <br /> then be placed in the dry stack tails impoundment. Water from the filter press units is routed <br /> back to the tails thickener and recovered back to the process water tank. <br /> 6.2 Mill Water Treatment and Discharge <br /> The treatment system will be operated in accordance with the manufacturer specifications. <br /> Treated Mill Discharge will be monitored for flow,pH, and conductivity at the outlet by <br /> continuous monitor at the mill control room. Quarterly analysis for all constituents on the Permit <br /> Page 12 of 14 <br />