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EXHIBIT C -paragraph 9 (continued) <br />The water consumed in the ore milling process will mainly result <br />from water entrapped in the gravity and flotation concentrates <br />and in the unconsolidated tailings. Because of the altitude anc <br />limited size of the tailings pond, only a relatively small amount <br />of water is expected to be lost due to evaporation. Recyclin@ <br />the mill water will reduce the amount of fresh water needed it <br />the milling process, and decrease the quantity of water pumpec <br />from Left Hand Creek. <br />Because of the hillside location selected for the tailing <br />impoundment structure, water runoff inflow will not b <br />substantial. A drainage diversion ditch will be excavated abov <br />the tailings pond to intercept surface water runoff and convey i <br />away from the tailings impoundment area. <br />A seepage collection ditch will also be excavated around thf <br />downstream perimeter of the tailings embankment dam. The water <br />that collects in this ditch will be conveyed by a pipeline to the <br />Hazel A, edit for underground storage and will be recyclec <br />through the milling facility. <br />