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• Leak Detection: <br />A monitoring well has been installed immediately down-gradient from the Tailings Impoundment Liner and <br />Leachate Collection System. This monitoring well will be sufficient to detect any breach or leaks in the composite <br />liner system. Any seepage and/or infiltration past the leachate collection system can also be detected here. A <br />monitoring well has also been installed up-gradient of the Tailings Impoundment. Testing done here provides a <br />baseline comparison with any results taken from the down-gradient monitoring well. See Exhibit E drawings for <br />monitoring well locations. A well construction detail schematic can be found above in section 6.3.3(1)(j). <br />Sampling will be performed at each well on a quarterly basis, and logged in an auditable Company record. Ideally, <br />there should be no water detected, indicating that systems are working correctly. If water is encountered it could be <br />related to a potential problem or temporary saturation from a recent storm event. In either event, the DRMS requires <br />a report within five working days if water is encountered. This report must immediately provide the pH value and <br />the purged volume. Laboratory analysis should follow as soon as the results are attained from the lab. Metals to be <br />tested shall include: Al, As, Ba, Cd, Cr, Cu, Pb, Mn, Hg, Se, Ag, and Zn. If the testing indicates a dry result, this <br />data should be collected for reporting to the DBMS in the annual reclamation report. <br />The following monitoring/sampling parameters shall be followed for each well: <br />I . Unlock and open security cap. <br />2. Insert a clean bailer-style sampler (nominally 0.5"-1.5" OD x 12"L) into the casing and lower via a clean, <br /> nylon cord. <br />3. Let the sampler reside at the bottom of the casing (25') for at least 2 minutes. <br />4. Carefully pull the sampler back to the surface. <br />5. Label a new clean bottle and complete the report with the following data: <br /> a. Date/time of sample <br /> b. Location, Up- or Down-Gradient <br /> c. Approx. depth of liquid level in bailer, in inches from bottom of borehole. <br /> d. Purged volume <br /> e. pH value to 1/10ffi of a standard unit using a properly calibrated handheld pH meter <br />• f. If none collected, record on report "Dry" <br /> g. Sampler's signature <br />6. Pour any contents into the labeled, clean, plastic sampling bottle. <br />7. Procedure #246 shall be repeated three times as a purging procedure if water is encountered. <br /> a. The fourth bottle collected shall be submitted for sampling or, the last bottle taken if the well goes <br /> dry during the purging sequence. <br />8. The sample report shall. be recorded with the Venture Resources' office. <br /> a. If water is encountered, the preliminary field report with pH value and purged volume shall be <br /> submitted to the DRMS within five working days. <br />9. Any collected water will be forwarded to an independent analytical laboratory that can perform the <br /> following test: Al, As, Ba, Cd, Cr, Cu, Pb, Mn, Hg, Se, Ag, and Zn metals -total concentration. <br />10. Returned lab results will be attached to the appropriate field report and maintained at the Venture <br /> Resources' office. This data will be preserved for the entire life of the operations. <br /> a. These test results shall also be immediately forwarded to DRMS upon receipt. <br />11. In the event that data is received indicating a problem, ie reported levels are higher than the baseline values <br /> established in Exhibit C, operations shall be ordered CEASED until the problem can be identified and <br /> corrected. <br />It shall be noted, the Colorado School of Mines owns over a dozen. properties down-gradient of this proposed <br />operation. One of which, the Edgar Union Lode, contains three large dumps that are 350' downgrade from the <br />proposed Tailings Impoundment. Inorder to not be adversely impacted by the acid runoff from the CO School of <br />Mines' property, the aforementioned monitoring well will be the best monitoring point. <br />Biodegradable geotextile shall be pinned to the exposed surface face to minimize wind and/or stormwater erosion on <br />a as-needed basis. This will be done until permanent stabilization through revegetation and/or rip rap can be <br />installed. Permanent control measures will be installed in 10 feet phased increments (elevation height of one quarter <br />. of a terrace or bench) which is estimated to occur every several months. This consists of covering the impoundment <br />area with a 6" blend of Class-A municipal bio-solids and topsoil. A biodegradable netting will then be applied to <br />Page 28 of 35