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MountRoyaleVenturesCashMineHydrology AdrianBrown <br />1._ <br />MRV has determined that the water within the mine is non-tributary and will be applying to the Office of <br />the State Engineer for a water well pursuant to Colorado Revised Statute (CRS) 37-90-137 and the <br />definition of "non-tributary ground water" pursuant to CRS 37-90-103(10.5) prior to any removal of <br />water for beneficial use. <br />As noted above, the mine will operate in a zero (point source) discharge mode after closure. <br />6.2.2 Water Supply <br />Any additional water that is required for the mine will be drawn from Left Hand Creek under water <br />rights held by MRV. This water will also be directly discharged to the tailings circuit, without injection <br />into, or storage within, any mine in the mining district. Accordingly, no underground injection permit <br />will be required for water storage operations at the Cash Mine. <br />6.2.3 Mine Backfilling <br />Cemented mine backfilling is contemplated for the Cash Mine, with the backfill being created by <br />addition of cement to tailings created in the milling operation. The current plan is based on paste backfill <br />of mined-out workings at the Cash Mine. An underground injection permit may be required, which will <br />be obtained if required prior to initiation of backfilling, which is expected to occur after approximately a <br />year of operation. <br />7. WATER WELL AND SEPTIC SYSTEM <br />7.1 DRMS Request <br />63.3 EXHIBIT C - Mining Plan, Section 18. Re: Proposed water well and septic system at Mount <br />Royale.No. I Adit portal area. <br />The Division agrees with MRV's commitment for submittal of appropriate design and construction <br />information via Technical Revision at such time that MRV elects to move forward with installation of the <br />groundwater well and/or septic system. And, concurrent with this, applicable and appropriate State of <br />Colorado permits will be pursued and evidence thereof provided to the Division. <br />7.2 MRV Response <br />MRV hereby commits to obtain the appropriate technical revision to the permit, and will provide to the <br />Division the relevant State of Colorado permits as requested. <br />1601A-20060911 7