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• added to its label. The remaining, undisturbed TAILS-AFTER TREATMENT sample has been stored for future <br />needs. <br />The four sample bottles were taken to Evergreen Analytical Lab of Wheat Ridge, CO and were delivered at 4:55pm <br />August 26, 2009 by Ryan McHale. <br />Following the consultation of DRMS staff, the following tests were ordered to be performed: <br />• Liquid components - RCRA listed metals, total and pH <br />• Solid components - SPLP Method 1312, Western <br />The test results are attached below. Assay results from the concentrates are proprietary and are not reported here. <br />It can clearly be seen that the proposed mineral processing regime produces an inert tailings that is non-acid forming <br />and has removed practically all of the heavy metals and sulfide minerals. The waste rock has been finely ground <br />and resembles sand and clay. The toxic sulfides have been removed during the milling process. The sand portion is <br />composed of vein type material such as quartz gangue and quartz monzonite porphyries with some of the <br />surrounding wall rock composed of metamorphic gneisses. The clays are formed from altered wall rock and <br />feldspars. <br />The net improvement is 2-3 orders of magnitude better, in many cases. <br />This procedure shall be adequate to test any other newly proposed feedstock for this operation. Once lab results are <br />reported and the newly proposed waste stream conforms to an analysis that there is sufficient removal of acid <br />generating material and heavy metals, the tailings can be impounded in the Tailings Impoundment area. <br />Lab Analysis Correlation w/ Dilution Factor - Pilot Plant to Mobile Mill <br />• As described above, the pilot plant produces a result using the same methods of gravity and flotation separation as <br />the Mobile Mill does. The key difference to consider is that the pilot plant is a captive, single batch process as <br />opposed to the Mobile Mill which is a continuous process. <br />Both operations process at a ball mill pulp density of 601/o - 70% solids by weight. Differences emerge when <br />considering the additional uses of water in the Mobile Mill, namely: the recycle loop for the table "middlings" <br />return as a pumped slurry to the ball mill circuit (instead of the manual, dry transfer done in the pilot plant), the <br />significantly greater amount of wash water that will be on the concentrating table deck, and the various points of <br />wash water in collection launders of the table and flotation cells. The Mobile Mill flotation cells will operate at <br />about 20% - 30% solids by weight. <br />Inorder to correctly correlate the tailings an "Isis done for the pilot plant to the Mobile Mill it is imperative to <br />understand that a dilution factor will need to be considered In this comparison a dilution factor of 1:3 can <br />reasonably be applied. This is not to say that the Mobile Mill is "wasting water" when compared to the pilot plant. <br />Inorder for a continuous process to be maintained, additional water is necessary at different points to keep solids <br />moving. This has the effect of diluting the tailings concentration of the Mobile Mill as compared to the pilot plant. <br />Remember, decanted water from the Tailings Impoundment is recycled back to the Water Holding Pond for reuse. <br />Pr 42189 <br />• 0. ? -0-0 <br />°'X _ _. <br />- VC.