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<br />' Below detection limit; detection limit = 0.1 <br />x Acid generating potential as CaCO; <br />Acid neutralizing potential as CaCO, <br />° AGP/ANP ratio >0.33 is considered to be acid generating (Cyanide Guide) <br />CONCLUSIONS <br />Permit conditions require that waste rock in Arequa and Squaw Gulches contain no <br />more 0.8 % sulfur. Waste rock containing greater than 0.8 % sulfur is to be placed in <br />Iron Clad pit. According to our interpretations, permit conditions state that the Iron <br />Clad Pit waste rock must be amended if there is a net acid generating potential. <br />The above tests indicate that permit conditions for the Arequa and Squaw Gulch waste <br />rock storage areas are being satisfied; none of the samples contain greater than 0.8 <br />sulfur. <br />The above tests indicate that permit conditions for the Iron Clad waste rock pit are not <br />being satisfied. Four of the five samples from the Iron clad have a net positive acid <br />generating potential. The fifth sample from the Iron Clad does not have the margin of <br />safety that is commonly recommended and that is recommended in the Draft Cyanide <br />and Acid Rock Guidelines. <br />John Hardaway acknowledges that the Iron Clad waste rock is not being amended, but <br />argues that the Permit does not require that the Iron Clad waste rock be amended. <br />cc: JP <br />