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Mr. Thomas A. Schreiner -Page Three <br />January 20, 2006 <br />investigation and installation of a groundwater monitoring system in an attempt to <br />merely define groundwater "gradient" is, in MRV's opinion, not warranted. <br />8. Re: Characterization of the ambient groundwater quality within the Cash Mine <br />and surrounding area. <br />MRV sampled the underground workings on January 31, 2006 at the sole location <br />available for sampling the mine pool (other areas are currently precluded from <br />access due to inaccessible workings and/or safety limitations). This mine pool <br />sample location is the water column present in the winze descending from the 3rd <br />level down to the 4`h level of the mine. Results indicate a pH = 6.91 standard units; <br />TDS = 982 mg/I; and sulfate (SO4) = 624 mg/I. Total metals analyses were reported <br />as follows (map of sampling location and laboratory data sheet attached): <br />Parameter: Det. Limit (mg/11: Result (ms7/l1: <br />Arsenic 0.001 0.023 <br />Cadmium 0.0003 0.063 <br />Copper 0.01 0.06 <br />Iron 0.01 1.73 <br />Lead 0.001 0.029 <br />Mercury 0.0001 0.0005 <br />Silver 0.0002 0.0007 <br />Zinc 0.01 8.17 <br />While this data is representative of a single sampling episode, it constitutes the <br />extent of data available for assessing "baseline" or ambient underground water <br />quality. MRV intends to build upon this database through the development and <br />implementation of a combined groundwater and surface water quality monitoring <br />program as identified in Item 9, below. <br />9. Re: Water monitoring plan to verify that future mining operations have <br />minimized any potential impacts to surface and groundwater quantity and <br />quality at the Cash Mine, Who Do Mine, Mount Royale Mine, and surrounding <br />areas. <br />MRV will commit to the submittal (in the form of a Technical Revision) of a <br />comprehensive sampling and analysis plan to monitor groundwater (i.e., the <br />previously identified underground mine water pool within the Cash Mine) and surface <br />water (i.e., Cash Gulch) at areas potentially affected by activities carried out at the <br />Cash Mine. <br />MRV requests that the Water Quality Monitoring Plan (Technical Revision) be <br />submitted to the Division not later than 60-days following conditional approval of <br />