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<br />flotation until conditioned with copper sulphate. Zinc is <br />normally depressed through the early flotation process with <br />minor quantities of zinc sulphate to prevent its being <br />activateded by copper minerals in the ore. Later in the <br />process zinc is activated by an addition to the circuit of <br />minor quantities of copper sulphate and at the same time <br />additional lime is added to the circuit to prevent the <br />pyrite's tendency to become partially activated by the <br />addition of copper sulphate. <br />In summary, it is our intent to adequately recover the gold, <br />silver, copper and lead minerals first, then the zinc <br />mineral separately, using close pH control along with <br />selective reagents to accomplish this task. The final <br />slurry containing pyrite is to be tabled to remove the <br />pyrite. Tabling as a final process is adequate since the <br />specific gravity of pyrite is 4.6 to 5.0 and the gangue at <br />this stage of the process is about 2.7. <br />Tabling at this stage has an added advantage as the <br />scrubbing effect of the clear water removes most traces of <br />residual coating of remaining reagents from the sand <br />particles before their deposition in the tailings disposal <br />area. <br />Please refer to Exhibit C - Milling Plan, Mill Design and <br />Capacity, regarding pyrite. <br />ITEM #10 <br />The well which will supply water for our mill is located <br />northeast of our mill a distance of approximately 1200 feet <br />and is hydrologically upgradient from our proposed tailings <br />disposal area. <br />Our intent is to use our own truck haulage and/or the <br />proposed plastic pipeline, at least temporarily. Cost <br />effectiveness of either the pipeline or truck haulage have <br />not been proven. Our inclination is to try both methods <br />during summer months by installing the pipeline on ground <br />surface. <br />In the past consideration was given to bringing city water <br />to the mill and also to acquiring sufficient water rights to <br />permit us to construct our own well water supply. Further <br />consideration of these more permanent supplies of water is <br />ongoing and will be finalized upon acquisition of necessary <br />data and proposed costs. <br />