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5. The Applicant has stated that there will not be designated chemicals on site for metallurgical <br />processing and that there aze no toxic or acid-forming materials to be exposed or disturbed as a <br />result of the proposed operation. The Applicant has also provided a geologic evaluation by <br />H.W. Miller assessing the acid generating potential in wall rock and ore materials via <br />examination of vein material and wall rock specimens. Upon review of this information, it is the <br />Division's position that there is reasonable potential that the proposed mining operation maybe a <br />Designated Mining Operation (DMO), as defined in Rule 1.1(12). At this stage in the review of <br />the amendment application, there is inconclusive evidence to verify that the proposed operation <br />should be exempt from the requirements of Rule 7, pertaining to DMO's. Further hydrologic and <br />geochemical evaluation is needed to assess the "baseline water quality" for the Cash Mine as <br />well as the potential for exposure or disturbance of toxic or acid forming materials (ore, tailings), <br />and potential for acid mine drainage (tailings leachate and/or discharge of mine water). The <br />Applicant has stated that the Cash Mine will be a zero discharge facility, and it is the Division's <br />understanding that the Applicant will provide a chazacterization of baseline water quality within <br />the mine. Please provide a time schedule for when the geochemical evaluation of waste rock <br />and/or tailings will be completed. <br />6. In conformance with Rule 6.3.3(2)(c), please describe the measures used to divert upland <br />drainage away from the site both during mining and after reclamation, especially for features <br />such as waste piles & mine dumps. In addition, please include any details pertaining to the <br />capacity of the ditches. (Any features not already delineated on the Mine Plan Map should be <br />included on a revised copy of the Mine Plan Map). <br />7. In conformance with Rule 6.3.3(1)(1), please provide a chazacterization of the hydrologic <br />resources within the mine and the surrounding area. The chazacterization should include a <br />description of existing groundwater elevation(s), and movement(s) or flow path(s). The <br />chazacterization should describe a typical 12-month cycle and address potential inflows from <br />snowmelt nmoff depict which areas of the mine are dry and which areas are wet. Finally, the <br />Applicant should describe the groundwater gradient within the Cash Mine and in the surrounding <br />area . Please respond. <br />8. In conformance with Rule 6.3.3(1)(1), please provide a chazacterization of the ambient <br />groundwater quality within the Cash Mine. (The Applicant may also want to include neazby up- <br />gradient sources as well asdown-gradient sources, and delineate areas within the mine according <br />to good, fair, and poor quality groundwater). The characterization should be based on existing <br />data, ie: water quality samples, as much as possible. Finally, the Applicant will need to <br />demonstrate at least five (5) quarters worth of "baseline groundwater quality samples" <br />representative of water within the mine. (The Applicant may want to differentiate which samples <br />of the available data set will be used to determine "ambient groundwater quality" within the Cash <br />Mine. <br />9. In conformance with Rule 6.3.3(1)(1), please provide an assessment of how mining will affect <br />the quantity and quality of the surface or groundwater resources at the Cash Mine and the <br />methods that will be used to minimize disturbance to the surface and groundwater systems. <br />