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EXHIBIT C - paragraph 9 (continued) <br />In the event that a use for the tailings cannot be found, another <br />tailings dam will be developed for the remaining operational life <br />of this milling facility. A decision will be made regarding this <br />option at least one year before the proposed tailings disposal <br />area has reached it storage capacity. A considerable effort was <br />made to insure that the starter dike was built on a strong base <br />with a scarified surface that is free from all organic matter. <br />This ground preparation was achieved by using a dozer to strip <br />the lower portion of the tailings impoundment area of overburden <br />and all vegetation, and to rip the bedrock around the perimeter <br />of the tailings dam. <br />Construction of the tailings dam will commence with the erection <br />of the starter dike, or toe dam. The starter dike was built from <br />locally available borrow material, in a zoned embankment that <br />will have an upstream gradation into sand. To increase the shear <br />strength of the starter dike, compaction of the borrow material <br />will be obtained by dynamically dropping it, and by making <br />repeated passes over it with the excavation equipment. The <br />initial dimensions of the starter dike are between 4 and 6 feet <br />in height, and 11 and 17 feet in width. The starter dike was <br />constructed between the 8,550 foot and 8,565 foot elevation <br />contours. [t will extend at least 50 feet upstream along the <br />lateral edges of the tailings pond. This will provide space <br />around the downstream perimeter of the starter dike for it to be <br />widened and raised with additional borrow material before the <br />initial level of the tailings pond is increased. <br />The tailings are pumped from the mill to the discharge line, <br />which are placed around the periphery of the starter dike. This <br />discharge line releases the tailings into the tailings pond from <br />spigots located every 10 to 30 yards along the upstream crest of <br />the starter dike. By selectively controlling the location of the <br />spigots, the tailings are discharged in a manner that promotes <br />the favorable separation of the tailings. While the slimes and <br />water pool are maintained in a central position, away from the <br />embankment, the sand beach that forms in front of the spigots <br />will be used to raise the tailings dam in 1 or 2 foot <br />increments. If the desired gradation, permeability, and <br />compaction characteristics of the tailings cannot be obtained by <br />using spigots, a cyclone will be employed to control the sand <br />separation process. <br />