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? - C <br />We have presented a design here to adhere to these newly prescribed requirements. <br />Venture Resources has gone far beyond what the Hardrock Rules and statutes require to satisfy the additional <br />requirements asked of us by the DRMS. We feel that these additional requirements are extraordinary, but Venture <br />Resources has elected to meet them inorder to compromise. We are serious about our business venture and reaching <br />a rational engineering solution. <br />Venture Resources has been working carefully with a leading geosynthetics manufacturer, Synteen Technical Fabrics, <br />to develop a design that incorporates geogrid into the Tailings Impoundment to increase stability. Synteen's analysis <br />considered multiple scenarios to model the Tailings Impoundment stability incorporating their SF350 Geogrid <br />product. These scenarios looked at both saturated and un-saturated states in both static and seismic conditions. <br />Multiple levels of Tailings Impoundment buildout were also evaluated: buildout through Bench #2 and buildout <br />through Bench #5. Below is a table summarizing the newly reported factors of safety at these varying conditions (to <br />be found also in Exhibit C, Rev. 2): <br />incorporating S nteen SF350 Factor of Safety Factor of Safety <br />Geo rid Reinforcing Static Analysis Seismic Analysis <br />Un-Saturated Conditions <br />Buildout through Bench #2 Z.10 1.47 <br />Buildout through Bench #5 Z07 1.44 <br />Saturated Conditions <br />Buildout through Bench #2 1.67 1.10 <br />Buildout through Bench #5 1.52 1.02 <br />This clearly illustrates that the proposed design does indeed meet the un-saturated factors of safety prescribed by the <br />DRMS on November 8s', namely: <br />Un-Saturated Tailings, Static Conditions - minimum Factor of Safety = 1.5 <br />Un-Saturated Tailings, Seismic Conditions - minimum Factor of Safety = 1.1 <br />Perhaps more importantly this also illustrates that considering saturated conditions the factors of safety are also <br />largely met. <br />The Synteen SF350 geogrid is to be incorporated incrementally into the Tailings Impoundment in horizontal planes <br />at a vertical spacing of 10' lifts, with the exception of Bench #3 which is to be spaced at 5' lifts. Refer to the <br />attached revised Exhibit E Drawing E 11 for an illustration of this. <br />The incorporation of geosynthetics into this design brings forth applying the latest technology and proven <br />engineering practice to bolster the stability of these types of upstream raised tailings impoundments. Applying this <br />technology should eliminate unfounded fears of failure. <br />Advanced Terra Testing, Inc. (ATT) performed a series of Consolidation Tests to also look at tailings density <br />characteristics during consolidation. ATT utilized ASTM D-2435 standards for this. The Coarse Fraction and <br />Slimes Fraction were prepared to a 30% pulp density to mimic the target tailings discharge from the mill down the <br />tailings pipeline. The results of this are as follows: <br />Page 2 of 5