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20,000 tons per year. It will be blasted rock of approximately minus 8" in size. This material should <br />be completely inert, since it will have no vein material. Waste rock will be brought out by small <br />mine cars on track to just outside the Revenue Tunnel. Due to the high demand for construction <br />materials in the area and the expressed desire of Ouray County to purchase this material, much of it, <br />if not all of it, will be crushed to a size of minus 1.5 inches and sold (or given away) from the site. <br />Some of the material may be incorporated into the waste piles and combined with tailings in the <br />two permanent piles. This waste rock for permanent placement will also be crushed to minus 1.5 <br />inch size to ensure that proper compaction can be achieved with the mixture. Also, no mixture to be <br />placed can have more than 20% waste rock, also to ensure that proper compaction can be achieved. <br />The existing waste rock at the Revenue Mine was analyzed by SVL Analytical in Kellogg Idaho <br />prior to the last shut down of the Revenue Mine back in 1999. Four samples were taken: One from <br />the north end of the waste rock pile, one from the south end and 2 other samples from the low grade <br />stockpile that existed at that time. This leachate analysis was submitted to DRMS, and shows that <br />the waste rock is inert. The pH of the waste rock samples are 8.33 and 8.22, respectively and zinc <br />levels are low which is to be expected for rock that is mostly inert andesite. Some pyritic sulfur <br />exists in the samples but in small enough amounts as to not affect the leachate pH or water quality. <br />A copy of this report can be found in Appendix 3. <br />If a large portion of existing waste rock is left at the Revenue Pile as a base for the subsequent <br />tailings, it will be graded flat and the surface will be compacted. The slope stability analysis of this <br />scenario is addressed in Exhibit U. <br />1.4 Chemical Storage and Use on Site <br />In addition to the 10,000 gallon diesel tank stored on the surface, various chemicals will be stored <br />on site for use in the milling operation. As shown on Maps C -2, C -3 and C -4, the mill will be <br />entirely underground. The east -west mill tunnel will be graded at a minimum of 1% toward Sump <br />1, located underneath the crushers. A pump in this Sump will pump water to Sump 2, which is <br />located at the southern end of the north -south mill tunnel. so that no spills or leaks can leave the <br />mill area. Sumps 1 and 2 will have a combined capacity of over 50,000 gallons, which is far more <br />Revenue Mine August 2012 T -18 <br />