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III IIIIIIIIIIIII III May 19, 1990 Exhibit G Hvdroloav The M & M Mining operation is located on the went slope of a ridge separating that drainage which enters Poor Mans Gulc:~ from the Middle Fork of the South Platte River. As shown on the contour on the Alma. Colo. V3GS 7-1/2 minute topograhic quadrangle, the total area that could result in drainage to =1:e ponds operated by M & M i9 approximately 80 acres, Assuming a maximum precipitation event of a 3-inch rain resulting in a runoff of 20A5, the maximum possible inflow into the ponds would be 4 acre feet. The surface area of the ponds is computed to be 9.29 acres; therefore, the resulting inflow from the storm noted above would be approximately 0.43 feet or 5 inches. In order to assure that the runoff dose not result in overtopping of the embankment of the ponds, we intend to maintain a one°oot freeboard at all times and maintain a drainage system awn; from the ponds for all runoff resulting from the office and pai-ki:~g urea. Recognizing that there will be some loss of water to the Middle Fork stream system as a result of evaporation Prom the ponds and operation in general, M & M hes legged water ri{;hts which will offset flepletion at suth times as water rights that they own are not in priority. The Company has met with t1;e Kater Commissioner and filed a Substitute Water Supply Plan witl the State Engineer for 1940, as well as n Plan For Augmentnticn with the District Court for Water Division T. This is all in accord with Colorado water law. The proposed. mining operation will require approximately 250 gellona per minute of water to wash the gravel and gold taken from the mine. Based on similar operations of this type, approximately ten portent of the wash water can be expected t.~ be lost due to leakage, evaporation, spray and surface moisture in the gravel. The remainder of the water used in the wag:~ing process will be recycled. Using a work schedule of SO hours of operation per day, 5 days per week and 8 months per year, the annual water requirements for the washing process will total d.3 acre-feet per year. The water mentioned above, that has b:en leased or purchased, is intended to replace water totally lost to the hydrologic system. 11s n result, the regime of the sur*ace or ground water systoms of the North Fork of the South plntte River System will not be adversely impacted by this operation.