2009-09-25_PERMIT FILE - M2009076 (39)

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• Waste Stream Characterization Pilot Plant Sampline Test Description Venture Resources, Inc. has earlier assembled a small scale pilot plant to conduct metallurgical testing of various gold, silver, lead, zinc, and copper ores as well as waste rock. The pilot plant is capable of processing +/- %2 ton of material per day in a single, captive batch. This process directly models the proposed 80 and/or 400 ton per day mineral processing mill. Testing was performed by Ryan McHale, Patrick Maher, Paul Danio, Tony Loudermilk, and Marty Beck on August 23, 2009. This particular sample was collected by filling (20) five gallon buckets with waste rock from the surface and sub- surface of the abandoned mine waste rock dump located within the Tailings Impoundment area (see Exhibit E). Each bucket is filled on a grid pattern of approximately 20 yards, representing an average of the contents of the dump. The material was then run through a two-stage dry crushing process consisting o£ 10" x 20" jaw crusher that dresses the material down to -3/4 inches and a 24" x 14" roll crusher that further dresses the material to -1/8". The crushed material is then weighed. This sample yielded 1.079 pounds of dry crushed material, with a density of approximately 1.5 tons/cu. yd. Each bucket is then fed into the hopper of a variable speed screw conveyer that feeds into a 2' diameter x 4' ball mill. Municipal water is then added at a rate of approx. 0.5 gpm to achieve 60% - 70% solids by weight. The output of the ball mill averages 35 mesh, but some coarser material is present. A 1 liter sample of this slurry, referred to as RAW-BEFORE TREATMENT, was collected in a clean plastic bottle at the ball mill discharge. Some coarser • material is captured in a screen box at the ball mill discharge, and is manually collected and fed back into the ball mill for re-grinding. The screen box discharge flows directly onto a'/. size Deister concentrating table. The table concentrate was collected for future assay testing and the size averages 48 mesh. The coarser "middle-ings" are captured and manually re-fed into the ball mill for re-grinding. The sand and slimes from the table are fed directly into a DECO No. 500 unit flotation cell with 36.4 cu. ft. capacity. After the sample was processed in entirety, the flotation cell was then operated as a single, captive batch. The final pulp density was approximately 40% solids by weight. The following process chemicals were added: • Lime, 2.0 lbs. to achieve a pH = +/- 7.5 using simple test strips. • Xanthate, 0.1 lbs, dry • Pine oil, 0.25 cup liquid volume The flotation cell was operated for a single, captive batch conditioning time of 45 minutes. The flotation concentrate was collected for future assay testing. After this time, the tailings were discharged into a clean poly tub. Two individual 1 liter samples of this slurry, referred to as TAILS-AFTER TREATMENT, were collected in clean plastic bottles from the discharge stream of a 1.25" diameter PVC pipe. On August 26, 2009 the samples were prepared to take to Evergreen Analytical Lab by Ryan McHale. The undisturbed samples had sufficient time to settle. From the RAW-BEFORE TREATMENT sample bottle, water was decanted using a clean siphon tube and collected into a new, clean %2 liter plastic bottle. This new bottle was labeled RAW WATER-BEFORE TREATMENT. The RAW-BEFORE TREATMENT bottle containing the settled wet solids had the word SOLIDS added to its label. Similarly, from one of the TAILS-AFTER TREATMENT sample bottles, water was decanted using a clean siphon tube and collected into a new, clean '/2 liter plastic bottle. This new bottle was labeled TAILS WATER-AFTER • TREATMENT. The TAILS-AFTER TREATMENT bottle containing the settled wet solids had the word SOLIDS