REVISION - 10/30/2009, 7:49:10 AM-JWD

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Response to DRMS September 25, 2009 Letter Powertech (USA) Inc. • RESPONSE TO DRMS SEPTEMBER 25, 2009 LETTER In its letter dated September 25, 2009, the Division of Reclamation, Mining and Safety (DRMS) requested clarification of a number of items related to Powertech (USA) Inc.'s proposed modification MD-03 to Notice of Intent to Conduct Prospecting P-2008-043. The specific items identified in DRMS's September 25, 2009, letter and addressed in this response are shown below in italics. 6. The Section 33 Pumping Test Plan included with MD-03 states on Page 5 that the monitoring wells will be located spatially in order to define the regional potentiometric gradients in the Laramie Formation, A2 Sand, and 8 Sand. Initial measurements for this purpose must be collected and the data provided to the DRMS prior to commencement of the proposed pumping test. These initial measurements, which may be single hand tagged measurements, if not already done should be taken as soon as possible, and are in addition to the baseline groundwater level data to be collected over a 72- to 96-hour period prior to initiation of pump testing as described on page 6 of the Pumping Test Plan. Response: The locations of the pumping well (IN08-33-PW-1[PW-1]) and monitoring wells for the Section 33 Pumping Test are shown on Figure 6-1. PW-1 is completed within the A2 Sand horizon, which is the primary mineralized zone. In aggregate, six monitoring wells in Section 33 are also completed within the A2 Sand, four monitoring wells are completed in the overlying Laramie Formation, two monitoring wells are completed in the underlying WE Sand, and three monitoring wells are completed within the underlying B Sand. The static water-level elevations for the pumping and monitoring wells are summarized in Table 6.1. Within the overlying Laramie Formation, groundwater occurs as a series of discontinuous perched lenses, as indicated by the wide variations in observed static water-level elevations. Within the A2 and B Sand horizons, the regional potentiometric gradients are generally toward the south and southeast. In Section 33, the potentiometric surface elevations within the B Sand are generally 26 to 30 feet higher than those within the A2 Sand and on the order of 20 feet higher than those within the WE Sand. Potentiometric levels measured on September 28, 2009, for the Section 33 Laramie monitoring wells are shown on Figure 6.2. Potentiometric contour maps for the A2 and B Sands are shown on Figures 6.3, and 6.4, respectively. The Section 33 monitoring wells will be instrumented with pressure transducers (LevelTrollso) and static water levels monitored prior to and during the pumping test and during reinjection of the produced fluids. FJ ARMOV R&