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5 DESIGNATED CHEMICAL EVALUATION <br /> According to the DRMS Hard Rock/Metal Mining Rule 1 "Designated Chemicals" are defined as: <br /> toxic or acidic chemicals used within the permit area in extractive metallurgical processing, the use <br /> of which at certain concentrations, represents a potential threat to human health, property or the <br /> environment. As this definition was written in fairly nebulous terms, nearly any existing chemical <br /> compound,including tap-water, could meet the criteria. While xanthate was not considered a <br /> designated chemical in 2015 when the original Environmental Protection Plan (EPP) was approved, <br /> it has since been added. A thorough review of its use at the site, and consultation with the US <br /> Environmental Protection Agency(EPA) and the Colorado Department of Public Health and <br /> Environment(CDPHE)found that they both consider the compound to be non-hazardous with <br /> respect to the environment. Further the on-site testing that was performed found that it degrades <br /> rapidly and has a very short life. Thus the regulatory agencies that are considered to be experts on <br /> hazardous-non-hazardous substances, and the engineers, relying on their testing and experience, <br /> agree that its proper use on this site would cause no adverse effect to the environment. Since the <br /> operator is currently performing exploration and testing, and site has a 110(d)permit, the use of a <br /> designated chemical is permitted,the use of xanthate will pose no harm to the environment. The <br /> possibility exists that the use of this chemical will be necessary to make the operation economic,thus <br /> it is included in Table 1, listing"designated chemicals", along with their use, concentrations, <br /> quantity, location, and fate. <br /> Table 2 includes chemicals that may be used in the processing, along with relevant information, <br /> concerning use, concentrations, quantity, location, and fate. Compounds that might be on site in <br /> quantities considered to be de-minimus per Federal Regulations are not included. Safety Data <br /> Sheets (SDS) are included as Attachment 1. Note that different manufacturers market the same <br /> chemicals under different names, some with minor proprietary differences. In these cases, even <br /> though the names might be different, the SDS sheet still remains accurate for the compounds <br /> contained in these other products. <br /> Even though the site has a"Designate Mining Permit", it currently remains in the prospecting and <br /> testing stage. The list of chemicals shown in the Table include the chemicals that are considered <br /> most likely candidates to produce a successful mineral separation, and if the operator is successful in <br /> his work, only a few of the chemicals listed will be used once production is achieved. Therefore, the <br /> table shows the typical sized shipping container, and the summation of the volumes for all of the <br /> containers shown does not reflect the total volume of chemicals that might be on site. The total <br /> volume of chemicals is anticipated to be much less (Tables 1 and 2). <br /> 6 DESIGNATED CHEMICAL HANDLING <br /> The following describes the procedures for the handling and disposal of chemicals and toxic <br /> materials within the permit area as well as measures to prevent unauthorized release of pollutants into <br /> the environment. The only designated chemical used on the site is xanthate, which is used in <br /> processing. Reclamation of the mine will be carried out as described in the reclamation plan already <br /> submitted with the original approved permit with amendments here-in contained. <br /> As more specifically described in Section 7 of this EPP there are two Environmental Protection <br /> Facilities (EPF)in place to prevent unauthorized release of any designated chemicals used in the <br /> 3 <br />