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detail the mine water breakdown. A fourth sample point downstream of the Revenue Mine area <br />is also monitored. <br />Typically, surface water quality impact is assessed by comparing a sample point immediately <br />upstream of the mining operation in question with an immediately downstream sample point. In <br />the case of Revenue, the proximity of the Atlas mine dump drainage means that it will have a <br />substantial impact of the water quality in Sneffels Creek. Therefore the upstream sample point <br />(SW -2) is upstream of even the Atlas mine dump drainage and a sample point (SW -1) is placed <br />on the Atlas mine dump drainage. Chemical quality data from these two points is then combined <br />to provide the water quality of Sneffels Creek immediately upstream of the Revenue Mine. <br />The attached table shows the water quality data at each sample point, and it compares those <br />sample values to the CDPHE water quality standards for this portion of Sneffels Creek. The <br />water quality standards for some items are fixed values from 05 CCR 1002 -31 & 35, and other <br />standards are variable based on the hardness of the water (05 CCR 1002 -36). The values that <br />exceed the appropriate standard are red flagged. Zinc seems to be the principal ion that exceeds <br />the limit in some cases. The limits in the table were determined from the hardness based <br />equations for this segment of Sneffels Creek after discussions with CDPHE personnel. <br />The table data shows what is expected: Sneffels Creek is negatively affected by the Atlas mine <br />dump drainage water. <br />We fully understand that if the mine re- opens, a full discharge permit is needed. We also believe <br />that the permit should be in place for the extension of the yellow Rose drift for the 800 feet <br />distance described in the Exploration Permit, a discharge permit will be needed for this work as <br />well. <br />However, for the in -mine drilling and re -hab work, we believe there is no chance that the water <br />emanating from the Yellow Rose drift could be affected since the holes will be fully plugged if <br />any water is encountered in the holes whatsoever. A total of 10,000 feet maximum of drilling is <br />planned, with an average hole length of 325 feet and an NX core size (2 -7/8 inch diameter). John <br />Trujillo, the mine geologist that has worked in the mine for years in the past, has stated that the <br />extension of the drift should not result in any additional water being produced, based on the <br />geology at this location. <br />