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<br /> <br />EXHIBIT C -WATER RESOI.RCES <br />To this date drilling has not revealed significant groundwater <br />on the SF1-18 property. There are no major surface drainages within <br />tFie property boundaries, although it is located bet~veen Atkinson and <br />Spring Creeks and is several miles north of the San Fliguel River. <br />(See Exhibit B for the location of major surface drainages in the <br />area.) <br />The operation is not expected to directly effect surface or <br />groundwater systems. In the event that the mine must be dewatered, <br />acreage has been permitted for an evaporation pond. I!o water will <br />• be discharged from this pond. <br />• <br />