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Memo to Steve Shuey • ? • March 3, 1999 <br />along the vein was any drifting or sloping conducted. The edit continued a[ a 1% grade to the no. 1 <br />winze. <br />• No. 1 winze. This winze connects the 9360 level with all other deeper underground workings from <br />u ~'_'!' '` • : "~: "~' ~` r.'.:^'-:'.i.-. _' rock was mined. The elevation difference between the 9360 edit <br />plug and the 9360 winze is 2~ or more feet. Substantial water w'as encountered in [he mine at the <br />9200 level, and had to be pumped throughout the duration of the operation. <br />• Mineralized vein below the 9360 edit level. These workings were the source of the vast majority of <br />Bulldog ore. <br />• 9360 level dump. This dump, which lies mostly on the west bank of Windy Gulch and partly within <br />Windy Gulch, holds waste rock from the 9360 edit level and below, and includes Creede Formation, <br />rhyolite bedrock, and mineralized rock. <br />The operator maintains that the static water level has returned to its original elevation, around 9200 feet. <br />Flow from the 9360 portal has low pH and metals. At issue is whether this flow represents natural <br />conditions, or degraded water quality conditions related to underground mining. <br />Possible sources of metals and acid in the 9360 edit include the following: <br />• Mineralized waters delivered from Windv Gulch to the Creede Formation, alone the Creede <br />Formation/Rhyolite bedrock contact. This assumes that surface water in Windy Gulch flows <br />through the 97001eve] waste rock, and that the waste rock is mineralized. Note: We do not have <br />enough information at this stage to either favor or rule out this possibility. We do not know whether <br />surface water flows through the dump and into the Creede, and we do not know whether the 9700 <br />level rock is mineralized or not. Based on conversations with Mack Rober, it seems that <br />hydrothermal alteration around or adjacent to veins in the Creede district was minimal, so pyritic <br />alteration shells should be uncommon. Therefore, our simplest interpretation is that the 9700 level <br />waste rock, being from the 9700 level edit, is essentially unmineralized because the edit runs <br />transverse to the mineralized vein, and so is not an acid metals generator. If this interpretation <br />holds true, then this option for mineralized water can be dismissed. <br />• Mineralized water in the Creede Formation. unaffected by mining, which is naturally acidic and <br />metalliferous due to natural interactions with Creede Formation mineralization. Under ordinary <br />circumstances, such water would flow through Creede Formation to the bedrock contact then along <br />the upper bedrock surface to base level. In this case, the edit would have intersected the flow of <br />groundwater to base level, and should return to normal if the edit plug valve is closed. Based on <br />results of the Creede Formation drill hole sample, taken this year, this option is the most favored <br />one. <br />Acid mine drainage caused by mining-related contamination in the 9360 level edit. In this case, <br />AMD could be caused by interactions between groundwater and either mineralized mine waste on <br />the edit floor, or pyritic exposures along the back and ribs. According to the drift reports, the 9360 <br />edit was basically dry, except for occasional fracture leakage and especially due to significant <br />seepage along the Creede formation/rhyolite bedrock contact. Thus, if the edit was essentially dry, <br />and water is derived mainly from the Creede bedrock contact, then the notion of AMD generation in <br />the edit behind the contact loses plausibility. <br />Acid mine drainage seeping, upward from the mineralized workings below the 9360 edit. This <br />possibility assumes several things, some of which are less plausible than others. It assumes first, <br />that the standing water level has risen above the original 9200 fool level and is now discharging <br />