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The general composition of waste rods and ore are as described below. <br />More in~epth discussion (Miller, H. W.; 2005) of the limited potential for <br />add generation is provided in Exhibit M. Neither the waste rode nor the <br />vein material is antidpated to be a significant add generating concern. <br />Waste Rock: Mine waste rock will consist of barren, or non-mineralized <br />material produced in the development of the adit, internal drifts, raises, <br />and other workings within the mine, typically accompanied by minor <br />(trace) amounts of mineralized material taken from the veins being mined. <br />The non-mineralized portion of this material will consist primarily of <br />Boulder Creek granite, with .lesser amounts of quartz vein material, <br />gneiss, and other related components of the country rock. U.S. <br />Geologipl Survey (U.S.G.S.) Professional Paper 223 describes the <br />Boulder Creek granite as a slightly porphyritic, darkyray coarse-grained <br />quartz monzonite ("granite°) that has a primary gneissic structure. <br />Mount Royale Ventures, LLC has researched available literature and <br />conducted site spedfic mineralogic analyses utilizing qual~ed <br />professionals. In addition, Mount Royale Ventures, LLC has relied upon <br />experience gained through underground rehabilitation and exploration <br />activities conducted during the mid-1980s (by Gold Hill Ventures), and the <br />recently undertaken Mount Royale No. 1 Adit prospecting program, to <br />support the contention that there is negligible potential for produdng add <br />generating materials. <br />Miller discussed the potential for add production from the Cash and <br />Freiburg vein materials and sun-ounding wall rode, and generally states <br />that there is minimal potential for vein or wall rode material mineralization <br />to generate acid or toxic drainage concerns. Miller's conclusions are <br />based upon his detailed literature review and professional opinion <br />following the examination of over 100 polished sections of vein <br />mineralization from the Cash Mine. <br />Boulder Creek granite is the chief wall rode of the veins in the Boulder <br />County telluride belt. The typical wall rock mineralogic composition is 20- <br />40%quartz, 20% microdine, 25-30% plagioclase (oligodase or andesine) <br />and 15-35°k biotite. Correspondingy, the main wall rode in the Gold Hill <br />District is coarse rained porphyritic granodiorite with a mineralogic <br />composition of 46°k plagiodase, 24% quartz, 11 % microdine, 15% biotite, <br />and 3°k hornblende. <br />In order to produce significant quantities of acidic water from a mine, <br />either the wall rode or the vein material must contain substantial quantities <br />of metallic sulfides such as sulfides of copper (e.g., chalcophyrite, bomite, <br />enargite, and tennantite) and/or metallic sulfides or iron (e.g., marcasite, <br />pyrrhotite, and pyrite). Lead sulfide (galena) forms very insoluble sulfate <br />(anglesite) and does not lower the pH of water that comes into contact <br />with it. Zinc sulfide (sphalerite) does not sign~cantly contribute to the <br />formation of acid mine water because the oxidation reaction of sphalerite <br />does not result in the liberation of free acidity. <br />Exhibk C -Mining Pian s <br />