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<br />FINANCIAL WARRANTY REQUIREMENT RE-EVALUATION <br />SAN LUIS PROJECT M-88-112 <br />Mazch 10, 2000 <br />TASKS AND COST ESTIMATES FOR REMAINING RECLAMATION OBLIGATIONS• <br />WEST PIT WATER MANAGEMENT PROGRAM <br />ASSUMPTIONS <br />In order to clean up the Wes[ pit backfill, the operator needs to withdraw, and process, 4.91 pore <br />volumes of water from [he lower pit area and 5.24 pore volumes of water from the pink gneiss <br />area (see attached "flush cycle calculations"). <br />1 pore volume equals 106,831,591 gallons in the lower pit and 11,408,470 gallon., in the pink <br />gneiss. <br />4.91 pore volumes in the lower pit equal 524,543,112 gallons. 5.24 pore volumes in the pink <br />gneiss equal 59.780,383 gallons. Total for both areas equal 584,323,495 gallons. <br />2 processes and 1 alternative have been evaluated since they are the only approved operations. <br />A) Nano-filtration process -Cost equals $6.90/1000 gallons treated (per ERI Technical <br />Operations' January 29, 2000 bid for the water treatment system). 12 month operation. <br />B) Evaporation system - $10,810.00/month (estimated labor and electricity costs for the <br />backup system). <br />The West pit water level will be pumped down to a msl of 8580 feet (for the lower pit. The pink <br />gneiss water level should equalize at approximately 8604 feet msl) at 400 - 700 glom. Thereafter, <br />the aquifer will be pumped a[ the steady-state rate which is estimated at 1 10 gpm plus 70 gpm <br />which BMRI anticipates pumping from the alluvial aquifer and re-injecting into the lower pit <br />area. So, the total pump rate from the West pit is anticipated to be 180 gpm. <br />It will take approximately 7.0 years to pump and treat the above-noted pore volumes of water. <br />WATER MANAGEMENT TREATMENT AND ESTIMATED COSTS <br />584,323,495 gallons x $6.90/1000 gallons = $4,031,832 <br />Monitor 8 wells at ]sample/month at $100.00/sample = $9,600/year <br />$9,600/yeaz times 7.0 years = $67,200 <br />CDPS discharge monitoring - 12 months times 4 samples/month times $200.00/sample = <br />$9,600/year <br />$9,600/year times 7.0 years = $67,200 <br />