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Sample Point <br />Q4 2011 <br />Q2 2012 <br />Q3 2012 <br />Zinc <br />Water Flow <br />Zinc <br />Water Flow <br />Zinc <br />Water Flow <br />SW -1 <br />82% <br />26% <br />12% <br />16% <br />50% <br />15% <br />SW -2 <br />11% <br />63% <br />84% <br />75% <br />20% <br />61% <br />SW -3 <br />7% <br />11% <br />4% <br />9% <br />30% <br />24% <br />sampled, but it is believed that considerable water was flowing in the gravel below the surface. We <br />know that the source of this water, the Atlas portal higher on the mountain, flows all year. . It is by <br />far the largest surface water contributor of zinc known in this system. <br />As shown in Table T -2 below, the proportion of zinc mass and the water flow that each upstream <br />sample point contributes to the whole is shown. The primary zinc source in Q4 2011 and Q3 2012 <br />was SW -1, the Atlas drainage. In both of these cases, the flow from the Atlas drainage was dwarfed <br />by the flow in Sneffels itself (SW -2). This aligns with the understanding that the Atlas Mine <br />encountered high zinc sulfide concentrations in its operation, and therefore its discharge is zinc <br />laden. However, in Q2 2012 the primary zinc contributor was Sneffels Creek itself. This sample <br />was taken at a high flow time of year (SW -2 flow of 3500 gpm), much higher than the next highest <br />sample flow (Q4 2011 SW -1 flow of 1200 gpm). The zinc mass flow rate is also magnitudes higher <br />between these two samples (182.84 g/hr versus 10.90 g/hr). SMO believes that the source of the <br />tremendous additional zinc contribution in high flow times of the year is from other abandoned <br />mines upstream, where large snow melt infiltration has generated discharges from mines that are <br />dormant the rest of the year. <br />Table T -2 Zinc and Water Proportions <br />Note: The proportions above are each water samples value out of the Sneffels Downstream Calc. from Table T -1. Q1 2012 is not included due to lack <br />of SW -2 (Atlas discharge) data. <br />An analysis of the underground water samples in the Revenue Mine shows that a) the Atlas Drift is <br />the biggest zinc contributor and b) zinc is dropping out over the course of the Revenue tunnel and <br />also from the Revenue Pond to the Revenue seep. The reasons for this drop in zinc concentration <br />are a combination of the following: <br />Revenue Mine August 2012 T -3 <br />