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Memo to Lam Oehler 2 August 29.2004 <br />Until the Applicant has completed the actions necessary to be eligible for the 20 percent bonding option, <br />DMG should bond for 100 percent of the cost to construct the slurry wall, using a unit cost of $3.00 per <br />face square foot. Another course of action would be to issue the permit under the 20 percent bond with <br />a commitment or stipulation that a technical revision will be approved incorporating the necessary <br />elements described above prior to the Operator exposing ground water in the pit. <br />DMG has completed a review of the Tetra Tech RMC slope stability analysis for the Tucson South Pit <br />dated May 12, 2004. The purpose of the stability analysis was to demonstrate that the excavation <br />setbacks proposed in the mine plan are sufficient to prevent damage to structures that are not owned by <br />the Operator. In the Tetra Tech letter report that describes the stability analysis, reference is made to a <br />DMG memo dated March 6, 2003 and it is stated that the analyses were run in accordance with the <br />requirements discussed in that memo. Essentially, the DMG memo describes stability analyses where <br />there has been no site specific sheaz strength testing of soil materials. Rather, assumed strength <br />parameters based on values for similaz soil, that can be found in the geotechnical literature, aze input to <br />the analyses. If strength parameters aze selected from the low end of the range of applicable values, thus <br />analyzing the worst case scenario for slope stability, any resulting safety factor in excess of unity is an <br />acceptable demonstration of stability. The March 6, 2003 DMG memo suggests that weathered <br />claystone bedrock be analyzed at its residual strength; this suggestion was followed in the Tucson South <br />Pit analyses. However, certain of the other strength parameters input to the Tucson South analyses do <br />not correspond with the discussions in the DMG memo. Accordingly, DMG will require that the <br />analyses be rerun using the following shear strength values, and that the mining setbacks be adjusted as <br />necessary. <br /> Moist Unit Saturated Unit Effective Cohesion Effective Friction <br />Material Wei ht c Wei ht c (s An le de rees <br />Overburden clay and clay <br />' 114 126 50 28 <br />lenses <br />Slu Walls 110 122 0 0 <br />Sand and Gravel 130 137 0 35 <br />Weathered claystone 124 134 0 14 <br />Bedrock residual stren <br />claystone Bedrock 124 134 100 28 <br />eak stren <br />* The clay lens was inspected by DMG in August 2004 where it outcrops in the Tucson North Pit <br />(Permit No. M-1991-140). Field classification of one sample of the clay lens determined that it <br />classifies as type CL under the Unified Soil Classification System. <br />cc: Cazl Mount, DMG (via email) <br />c:\aus\LOANER MACHINE\My Documents\Tucson South.doc <br />