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Sneffels Creek. As further data is gathered over the life of the mine, it will be added to the permit if <br />it has a material impact on mining or reclamation plans. <br />The closest ground water well is located on site immediately outside of the portal, and is owned by <br />the mine This well has not been used or monitored in some time. The lack of any ground water <br />well data in the immediate vicinity of the mine is offset by the water monitoring data that has been <br />collected at the Revenue and Atlas portals. For the purpose of ground water analysis at the Revenue <br />Mine, these portal discharges will be used. Surface water sampling at the Revenue Mine has been <br />conducted sporadically since the early 1980s. However, most this sampling focused only on <br />dissolved zinc, copper, and lead. More recent sampling has tested for a broad suite of total and <br />dissolved metals. <br />2. Site Geology <br />A significant discussion on the geology of the area is given in the Introduction section of this <br />permit. The Revenue Mine's local geology is predominantly controlled by fracture structures that <br />cross the various formations and tuffs in the area. Most of the ore was historically found in the San <br />Juan Formation, with the Eureka Tuff and Picayune Formation acting as footwall and highwall host <br />rock. These formations are in place unconformably, and are often broken up by intrusive <br />formations. Because of unconformity, water storage and transmission is not lithologically <br />determined at Revenue. There is not a primary water bearing zone, formation, or even intrusion. <br />Historically, when new tunnels and drifts were driven at lower elevations in the area and dewatered, <br />the upper areas were dried out. Additionally, mine water flows fluctuate seasonally, as shown in the <br />historic water data in Appendix 3. It can be assumed that the ground water in the Revenue flows <br />from smowmelt on the mountain surface through fracture systems and into the workings. <br />The quartz veins that penetrated the San Juan Formation were primarily 1' to 5' in width, and could <br />consist of up to 20% sulfide minerals with some free gold and silver. Most of the rock surrounding <br />the veins is andesite, which is a very fine granite, consisting of quartz, feldspar, amphiboles, biotite <br />and muscovite mica. <br />Revenue Mine August 2012 G -2 <br />