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Amendment to Exploration License 00710 Tintina Alaska Exploration, Inc.

For

Exploration Decline for Underground Drilling and Bulk Sampling Black Copper Project, Meagher County, MT

Submitted by:

Tintina Alaska Exploration, Inc. Black Butte Copper Project PO Box 431 White Sulphur Springs, MT 59645 406-547-3466

Submitted to:

Bob Cronholm Director Hard Rock Section Small Miner and Exploration Program Department of Environmental Quality Environmental Management Bureau PO Box 200901 Helena, Montana 59620-0901

November 7, 2012

Black Butte Copper Project Amendment to Exploration License

TABLE OF CONTENTS

1.0 INTRODUCTION...... 1 1.1 Project Location ...... 1 1.2 Brief Project History ...... 1 1.3 Land Status ...... 4 1.4 Geology ...... 4 1.4.1 Geologic Setting ...... 4 1.4.2 Deposit Type ...... 7 1.4.3 Mineralization ...... 7 1.4.4 Mineral Resources ...... 9 2.0 EXISTING ENVIRONMENTAL CONDITIONS ...... 11 2.1 Climate ...... 11 2.1.1 Weather Monitoring Station ...... 12 2.2 Air Quality Permitting ...... 12 2.3 Hydrology ...... 13 2.3.1 General Hydrologic Setting ...... 13 2.3.2 Surface Water ...... 15 2.3.3 Groundwater ...... 17 2.3.4 Wetlands Delineation ...... 20 2.3.5 Seeps and Springs Delineation...... 21 2.3.6 Aquifer Testing ...... 23 2.3.7 Decline Inflow Analysis ...... 24 2.3.8 Water Rights ...... 25 2.4 Geology ...... 25 2.5 Soils ...... 25 2.5.1 Soil Suitability and Volume for Reclamation ...... 27 2.5.2 Soil Suitability for Land Application of Mine Water ...... 30 2.6 Mining Waste Geochemical Characterization ...... 33 2.6.1 Sampling and Analysis Methods ...... 33 2.6.2 Results ...... 35 2.6.3 Conclusions ...... 37 2.7 Biological Resources ...... 37 2.8 Noxious Weeds ...... 39 2.9 Wildlife ...... 39 2.9.1 Wildlife Observed ...... 39 2.9.2 Species of Concern ...... 40 2.9.3 Fisheries and Aquatic Life ...... 42 2.10 Cultural Resources ...... 43 2.11 Socio-economics ...... 46 2.11.1 Potential Positive Effects of the Project on Local Communities ...... 48

Tintina Resources, Inc. i November 7, 2012 Black Butte Copper Project Amendment to Exploration License

2.12 Land Use ...... 48 3.0 EXPLORATION DECLINE OPERATING PLAN ...... 49 3.1 Introduction ...... 49 3.2 Support Facilities and Surface Disturbance Areas ...... 49 3.3 Pre-Construction Site Preparation Common to All Disturbed Areas ...... 54 3.4 Decline and Support Facilities ...... 54 3.4.1 Exploration Decline ...... 54 3.5 Support Facilities ...... 57 3.5.1 Portal Pad and On-Pad Underground Mining Support Facilities ...... 57 3.5.2 Off-Pad Underground Mining Support Facilities ...... 59 3.5.3 Waste Rock Storage and Seepage Collection Support Facilities ...... 60 3.5.4 LAD Areas ...... 72 3.6 Water Management ...... 75 3.6.1 Water Inflow to the Decline ...... 75 3.6.2 Initial Use of a Mine Pond ...... 76 3.6.3 Decline Water Disposal ...... 76 3.6.4 Seepage Collection/Evaporation Pond Water Disposal ...... 76 3.6.5 Waste Water Treatment ...... 77 3.7 Access Roads ...... 78 3.7.1 Surface Construction Equipment ...... 78 3.8 Storm Water Control ...... 79 3.9 Project Schedule and Personnel ...... 80 3.9.1 Project Schedule ...... 80 3.9.2 Number of Employees and Principal Tasks ...... 81 3.9.3 Employee Work Schedules ...... 81 3.10 Other Activities ...... 81 3.10.1 Fire Protection ...... 81 3.10.2 Solid Waste Disposal ...... 82 3.10.3 Site Security ...... 82 3.10.4 Hazardous Materials ...... 82 3.10.5 Lighting ...... 82 3.10.6 Noise ...... 82 3.10.7 Temporary and Permanent Shut-Downs ...... 82 4.0 MONITORING AND MITIGATION PLANS ...... 84 4.1.1 Air Quality ...... 84 4.1.2 Surface and Groundwater Resources ...... 84 4.1.3 Ore and Waste Geochemistry ...... 85 4.1.4 Soils ...... 87 4.1.5 Weed Control ...... 88 4.1.6 Cultural Resources ...... 88 4.1.7 Wetlands ...... 88 4.1.8 Mitigation ...... 89 5.0 RECLAMATION PLAN ...... 90

Tintina Resources, Inc. ii November 7, 2012 Black Butte Copper Project Amendment to Exploration License

5.1 Post Construction Land and Road Use ...... 90 5.2 Post- Exploration Solid Waste and Facility Disposal and Decline Closure ...... 90 5.3 Decline and Portal Pad Closure ...... 91 5.4 Seepage Pond and Waste Rock Pads Closure ...... 91 5.5 LAD Trench Site and Water Supply Line Closure ...... 91 5.6 Post-Exploration Water Quality Monitoring ...... 92 5.7 Soil Salvage and Replacement ...... 92 5.7.1 Soil Salvage ...... 92 5.7.2 Soil Storage and Protection ...... 92 5.7.3 Soil Testing and Redistribution ...... 92 5.8 Revegetation ...... 93 5.8.1 Revegetation Mixture and Rate ...... 93 5.8.2 Seedbed Preparation and Seeding Method ...... 93 5.9 Reclamation Monitoring ...... 93 5.9.1 Soil and Construction Monitoring ...... 93 5.9.2 Revegetation Monitoring ...... 94 5.9.3 Reporting ...... 94 5.10 Reclamation Schedule ...... 94 5.11 Bond Release ...... 94 6.0 REFERENCES ...... 95

LIST OF TABLES

Table 1. Resources Johnny Lee Deposit* ...... 9 Table 2. Potential Resources for Baseline Environmental Assessment/Study...... 11 Table 3. Parameters, Methods and Detection Limits for Baseline Environmental Assessment/Study ...... 13 Table 4. Well Completion Details ...... 19 Table 5. Calculated Hydraulic Conductivity from Aquifer Test Results ...... 24 Table 6. Results of Inflow Analysis ...... 25 Table 7. Soil Types Near Proposed Black Butte Copper Exploration Decline1 ...... 27 Table 8. Summary of Data for Soil to be Salvaged from Decline Portal Area1 ...... 29 Table 9. Summary of Saturated Paste Extractable Metal Analysis ...... 30 Table 10. Summary of Geochemical Samples for Black Butte Copper 2012 Exploration Decline ...... 35 Table 11. Plant Species of Concern Known to Occur in Meagher County and Potentially Occurring in the Project Area ...... 38 Table 12. Wildlife Species of Concern Known to Occur in Meagher County and Potentially Occurring in the Project Area ...... 40 Table 13. Meagher County, MT, and US Current Population Trend ...... 46 Table 14. Age Groups in Meagher County, MT, and US Current Population ...... 46 Table 15. Employment by Industry, 2001-2009 ...... 47 Table 16. August 2011 Labor Force Non-Seasonally Adjusted Preliminary ...... 47 Table 17. Per Capita and Household Income ...... 47 Table 18. Acres of Surface Disturbance by Facility ...... 50

Tintina Resources, Inc. iii November 7, 2012 Black Butte Copper Project Amendment to Exploration License

Table 19. List of Underground Equipment and Utilities for Decline Construction ...... 57 Table 20. Waste Rock Material Properties and Stability Analysi ...... 63 Table 21. Volume of Materials to be Mined from the Decline ...... 66 Table 22. Final Waste Rock Pad Design Capacity ...... 66 Table 23. Seepage Collection and Pond Design Capacity ...... 70 Table 24. Results of Inflow Analysis ...... 75 Table 25. Exploration Decline Surface Construction Equipment ...... 79 Table 26. Average Quarterly Employment and Principal Tasks ...... 81 Table 27. Selective Handling Criteria Black Butte Copper 2012 Exploration Decline ...... 86

LIST OF FIGURES

Figure 1. Project Location ...... 2 Figure 2. Site Vicinity Map, Exploration Decline, Land Status and Access Roads ...... 3 Figure 3. Tintina Land Position Map ...... 5 Figure 4. Geologic Maps Showing Ore Deposits ...... 6 Figure 5. Stratigraphic Section Showing Deposits ...... 8 Figure 6. Exploration Decline Cross-Section ...... 10 Figure 7. Water Quality Monitoring Sites ...... 16 Figure 8. Potentiometric Surface Map (May 2012) ...... 18 Figure 9. Wetlands Map ...... 22 Figure 10. Soils Map ...... 26 Figure 11. Soils Infiltration Testing Map ...... 31 Figure 12. Black Butte Copper Stratigraphy ...... 34 Figure 13. Black Butte Copper 2012 Decline, Acid Generation Potential ...... 36 Figure 14. Cultural Resource Inventory Boundary ...... 44 Figure 15. Large Scale Site Plan Map ...... 45 Figure 16. Surface Disturbance Map ...... 51 Figure 17. Mid-Scale Site Plan Map ...... 52 Figure 18. Portal Pad Facilities ...... 53 Figure 19. Waste Rock Storage Pad Grading Plan ...... 61 Figure 20. Conceptual Waste Rock Pad Construction Section ...... 64 Figure 21. Waste Storage Stacking Plan...... 67 Figure 22. Waste Rock Pile Cross-Section ...... 68 Figure 23. Conceptual Plan for Expansion of the PAG Pad Facility...... 69 Figure 24. Seepage Collection System ...... 71

LIST OF APPENDICES

Appendix A: Air Quality Monitoring Report/Data Appendix B: Baseline Water Resource Monitoring Report/Data Appendix C: Wetland Survey Report/Data Appendix D: Hydrologic Assessment of Proposed Exploration Decline Appendix E: Soil Infiltration Data Appendix F: Baseline Environmental Geochemistry Evaluation Report/Data Appendix G: Biological Resources Report Appendix H: Cultural Resources Report

Tintina Resources, Inc. iv November 7, 2012 Black Butte Copper Project Amendment to Exploration License

1.0 INTRODUCTION

Tintina Alaska Exploration, Inc. (Tintina) a wholly owned US subsidiary of Tintina Resources, Inc., proposes to expand exploration activities on its Black Butte Copper Project property (Project) by constructing an exploration decline into the Johnny Lee copper-cobalt-silver deposit zones. It is intended that the decline would be used as access from which to conduct an underground development drilling program that would provide a more thorough understanding of the geometry and grade of the mineable resource. The decline would also provide access for the collection of a 10,000 ton bulk sample for on-going metallurgical testing. In addition, the decline would allow for other technical investigations such as hydrologic/aquifer, water quality, geochemical characterization, and geotechnical studies to be conducted in support of future mine planning.

Tintina previously submitted a Plan of Operations to the Montana Department of Environmental Quality (DEQ) in order to obtain Exploration License #00710 (date and reference for earlier application) to use surface drilling methods to define the mineral resource, estimate the feasibility of mining the copper-cobalt-silver deposits, and to conduct various types of environmental testing to provide baseline data in the Project area. Several phases of ongoing exploration drilling have been approved following the submittal of Notices of Resumption of Exploration Activities by Tintina. This document is submitted to DEQ as a proposed Amendment to the earlier Exploration License Application and adds an additional scope of work to focus on activities and the construction of support facilities necessary to develop an exploration decline.

This introductory section is followed by sections on the existing environment conditions, a proposed Operating Plan, a Monitoring and Mitigation Plan, and a Reclamation Plan.

1.1 Project Location The Black Butte Copper Project area is located about 15 miles north of White Sulphur Springs in Meagher County, Montana (Figure 1). The property is accessed from White Sulphur Springs via U.S. Highway 89 and then by a two-mile long, gravel county road that with winter snow plowing is passable year-around. White Sulphur Springs is the county seat of Meagher County, Montana, and is home to about 985 people. Other nearby communities include Belt, Montana (population 597) located 50 miles to the north and Great Falls, Montana, (population 56,690) about 80 miles to the northwest. A larger scale Site Vicinity Map is presented as Figure 2.

1.2 Brief Project History In 1894, mineral exploration in the Black Butte area consisted of a 70 foot shaft and a 30 foot drift at the Virginia Mine. The Virginia Mine was located about 1,500 feet west of the current Tintina resource area (Figure 2). These exploration workings were driven to explore copper- stained outcrops of quartzite (Weed, 1899) and gossans. Later during the early 1900s, exploration work consisting of prospect pits and short adits focused on exploration for iron resources developed in aerially extensive gossans located in the area between Iron Butte and Sheep Creek (Figure 2) (Goodspeed, 1945; Roby, 1950).

Homestake Mining carried out the first modern exploration work on the property in 1973 and 1974, after which they abandoned the property. Cominco American Inc. (CAI) resumed exploration in the district in 1976 and ultimately consolidated their leases of private ranch lands with lands joint ventured from competitors, none of whom retained any interest in the property.

Tintina Resources, Inc. 1 November 7, 2012 Project Location

^ 15 ¦§¨ Great Falls ! Montana

¤£87 Highwood Mountains

Missouri River Belt !

Smith River

Little Belt Mountains Neihart !

Judith River

Sheep Creek ^Project Location York Coon Cr. !

Little Sheep Cr. ¤£89

Canyon Ferry Lake ¤£12

¤£12 White Sulphur Springs ! ³ Miles

0 10 N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig1_ProjectLocation.mxd

Project Location Local Road ^ Figure 1 ! City Stream Project Location Interstate Lake Black Butte Copper Project U.S. Route Meagher County, Montana N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig2_SitePlan.mxd

Johnny Lee Upper Zone Johnny Lee PW-4 Lower Zone PW-2 ?@ ?@ ?@ Strawberry Butte .! PW-1 ?@ .! Decline Alignment PW-3 .! Existing Access Road Bulk Tonnage Mining Drift .! Portal .! Core Shed Proposed Access Road Alignment and Portal Pad Adit Alignment Hole

³ Miles

0 1 Prepared by Tetra Tech, Inc. 2012 ?@ Pumping Wells Core Shed Figure 2 .! Adit Alignment Holes Johnny Lee Lower Zone Site Vicinity Map, Exploration Decline Decline Alignment Johnny Lee Upper Zone and Access Roads Existing Access Road US Forest Service Black Butte Copper Project Proposed Access Road Alignment and Portal Pad Meagher County, Montana Black Butte Copper Project Amendment to Exploration License

In 1985, CIA joint ventured the entire land package with BHP. BHP operated the joint venture through early 1988 and earned a 50% interest in the project, at which time operatorship reverted back to CAI. Within the next two years, CAI purchased BHP’s interest in the property and regained 100% control with no retained royalties. CAI dropped the leases with no retained interest in the mid-1990s. Approximately 66 exploration core holes were completed in the lease areas by CAI and the CAI/BHP joint venture (Resource Modeling Inc., 2010).

1.3 Land Status In all, Tintina has entered into agreements with surface and mineral rights owners on about 7684.28 acres of private lands, and also controls 239 Federal mining claims contiguous with the fee simple lands (Figure 3). Tintina acquired its initial surface and mineral leases in 2010 on approximately 2,600 acres of ground in the Project area with the Bar Z Ranch and Hanson properties (Figure 3). Later that year, the Holmstrom Ranch lease was acquired encompassing an additional 2120 acres (Figure 3). Tintina also staked 56 ‘SB’ Federal lode mining claims during November of 2010, and 183 ‘BSP’ Federal lode mining claims in early 2011 (Figure 3). Also in 2011, Tintina acquired a mining and surface lease for a 2970-acre property contiguous with the Bar Z Ranch called the Buckingham, Johnson, and Bodell lease (Figure 3).

Tintina’s lease includes land located in sections 23, 24, 25, 26, 28, 32, 33, 34, 35, and 36, Township 12 North, Range 6 East; sections 19, 29, 30, and 32, Township 12 North, Range 7 East; and sections 1, 2, 6, and 7 Township 11 North, Range 6 East; and sections 1 and 12 in Township 11 North, Range 5 East (Figure 3).

The proposed exploration decline portal would be located on a south-facing, gently sloping hillside about 9,000 feet to the east-southeast of Black Butte in the NW4/SW4 of Section 30 T12N, R7E on the north-south section. All of the proposed activities associated with the exploration decline will take place on privately owned ground.

1.4 Geology The description of the geologic setting, deposit types, and mineralization of the Black Butte Copper Project area has been summarized by Resource Modeling, Inc. (RMI, 2010) and has been modified from that discussion in the sections immediately below with the addition of new data and information.

1.4.1 Geologic Setting The Cu-Co-Ag deposits of Black Butte occur in middle Proterozoic of the Belt Supergroup in central Montana (Zieg and Leitch, 1993). During subsidence and filling of the Belt sedimentary basin, a deep water middle Proterozoic calcareous shale facies (Newland Formation) was deposited in the Helena embayment, a trough-like embayment, which extended eastward into the craton through central Montana (Godlewski and Zieg, 1984). The northern boundary of the deeper water facies of the Helena embayment is located along the southern flank of the Little Belt Mountains north of White Sulphur Springs, Montana (Figure 1). During the Cretaceous Laramide orogeny, renewed faulting along the ancestral northern margin of the embayment formed the Valley thrust (Winston, 1986). The bedded massive sulfides of Black Butte Copper deposits are concentrated along the northern margin of the Helena embayment and along the Volcano Valley fault zone (Figure 4).

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Holmstrom k Johnny Lee Deposit

Buckingham Bar Z SB k Lowry Deposit Holmstrom SB

SB Bar Z & Hanson

R5E R6E R6E R7E

SB Buckingham

Buckingham SB T12N T11N

Buckingham BSP ³ Miles

0 1 Prepared by Tetra Tech, Inc. 2012 Figure 3 k Deposit Bar Z Ranch (S) & Hanson (M) Tintina Land Position Map BSP Claims (USFS & M) Buckingham (S) Johnston, Buckingham, Bodell (M) Black Butte Copper Project Bar Z Ranch (S) Holstrom Ranch (S & M) SB Claims (USFS & M) Meagher County, Montana N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig4_Geology.mxd

Volcano Valley Fault

Black Butte Fault

Figure 4 Geologic Map Showing Ore Deposits Black Butte Copper Project Meagher County, Montana Black Butte Copper Project Amendment to Exploration License

The Newland Shale hosts the Black Butte Copper massive sulfide deposits, and consists of a lower shale-dominated section, which measures approximately 2,500 feet in thickness and an upper carbonate-dominated section which measures approximately 1,150 feet thick. The shale is even laminated and was locally deposited as micro-turbidites (a small-scale turbidity or density flow deposits) in a sub-wave base depositional setting. Debris flow conglomerates occur in the sedimentary section along the northern margin of the embayment (RMI, 2010).

1.4.2 Deposit Type The Black Butte Copper bedded sulfide accumulations are shale-hosted, subaqueous massive sulfide deposits. Though in places the lower Newland shale shows ubiquitous bedded pyrite throughout, more typically sulfides are concentrated as several discrete, continuous, and laterally extensive stratigraphic horizons (Figure 5).

The sulfide deposits are associated with and genetically related to adjacent or nearby hydrothermal vent fields that were present during deposition of the host shale. The hydrothermal vent fields are localized at structural intersections developed during prolonged syn-sedimentary extensional faulting along the northern margin of the Helena Embayment (Figure 4).

Bedded sulfides have been involved in soft sediment folding, and sulfide accumulations include evidence of vent biota growing over the sites of subaqueous hydrothermal hot springs. These vent biota are intricate growths of tubes interpreted as having formed around algal or bacterial filaments and are most abundant in association with greater sulfide accumulations (McGoldrick and Zieg, 2004) (RMI, 2010).

1.4.3 Mineralization Copper-cobalt mineralization is hosted in bedded sulfide horizons within calcareous shale of the lower Newland Formation. In the Project area north of the Black Butte Fault (Figure 4), four separate lenses of massive sulfide occur along the upper sulfide zone” (USZ). USZ stratigraphic horizons (Figure 5) are separated by conglomerate lenses or cut into separate structural blocks by northeast trending, down to the southeast normal faults (Figure 4). One of these lenses, known as the “Johnny Lee Upper Zone” (JL-UZ), is proposed for additional underground exploration drilling and metallurgical sampling in this Exploration License Amendment document. With the exception of its higher copper grades, the mineralogical and textural attributes of the Johnny Lee Upper zone are typical of the USZ throughout the Black Butte Copper Project area.

The upper Johnny Lee sulfide zone consists of a lens of fine-grained bedded pyrite (FeS2) as much as 285 feet thick containing as many as three chalcopyrite-bearing (CuFeS2) horizons. Microscopic textures and species of sulfide minerals, primarily from copper-enriched horizons, are described by Himes and Petersen (1990). Pyrite occurs as laminations and beds of very fine-grained pyrite as micro-crystals and spheroidal aggregates as small as 1 micron and as much as 25 or more microns in diameter. Some coarse euhedral pyrite crystals clearly grew much later than fine grained pyrite varieties. Pyrite and sometimes marcasite (FeS2) aggregates contain rims, patches, and sometimes cores of chalcopyrite and tennantite [Cu3(As,Sb)S8], and in many cases amorphous Cu, Co, Ni, and As-rich material. Pyrite grain rims contain enrichments of Cu, Ni, As, and Co. Chalcopyrite occurs as coarser grained veinlets and clots, in parallel bedding layers and bands, in quartz veinlets, and in barite (BaSO4) veins and masses.

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Figure 5 Stratigraphic Section Showing Ore Deposits Black Butte Copper Project Meagher County, Montana Black Butte Copper Project Amendment to Exploration License

In the southern part of the USZ, copper zones can contain bornite (Cu5FeS4) as well as more abundant chalcopyrite. Cobalt minerals include cobaltite [(CoFe)AsS] and siegenite (Ni,Co)3S4). Coarse grained barite occurs both inter-grown with and cross-cutting pyrite.

While local silicification occurs within the Cu-mineralized stratigraphy, most of the Cu-Co mineralization occurs within unsilicified bedded pyrite. Silicification occurs in some areas of the Cu-mineralized stratigraphy. Better grades are associated with barite-chalcopyrite veins and masses of inter-grown pyrite, barite, and chalcopyrite that replace and crosscut the bedded sulfide.

1.4.4 Mineral Resources Figure 5 and a cross-section shown on Figure 6 illustrate the location of both the Upper and Lower Zones of the Johnny Lee Deposit. Mineral resources have been recently (April 2012) calculated by RMI using 2010 through 2012 drill data including drill hole logs, geologic interpretations and assays to create a three dimensional block model of the deposit zones.

Table 1 presents the indicated and inferred copper resources of the Johnny Lee deposit zones. For the Johnny Lee Upper Zone indicated and inferred resources, a measured bulk density value of 3.93g/cm3 (5.66 tons / cu yds.; 0.18 cu yds. / ton; 4.86 cu ft. / ton) was used to calculate tonnage. A cutoff grade of 1.6% copper was used to define the mineral resources at a copper price of US$2.75 per pound and an estimated copper recovery of 81%. For the Johnny Lee Lower Zone Inferred resource, a measured bulk density of 3.80 g/mc3 was used to calculate tonnage. A cutoff grade of 1.5% copper was used to define the mineral resource at a copper price of U.S. $2.75 per pound and an estimated copper recovery of 84%.

Table 1. Resources Johnny Lee Deposit* Deposit Category Tonnes Cu grade % Cu (MM) (MM lbs) Upper Zone Indicated 8.48 2.96 553 Upper Zone Inferred 1.26 2.64 73 Lower Zone Inferred 2.46 4.71 256 *As of April 2012, prior to 2012 drilling season.

On-going surface exploration drilling is currently (October 2012) being conducted on an additional deposit called the Lowry Middle Zone. The Lowry deposit is located to the southwest of the core shed shown on Figure 2.

Tintina Resources, Inc. 9 November 7, 2012

Meagher County, Montana County, Meagher

Black Butte Copper Project Copper Butte Black

Exploration Decline Cross-Section Decline Exploration

Figure 6 Figure

Prepared by Hydrometrics, Inc. 2012 Inc. Hydrometrics, by Prepared

HORIZONTAL DISTANCE FROM ADIT PORTAL (FT) PORTAL ADIT FROM DISTANCE HORIZONTAL

0 0 0 0 0010 4010 8020 2020 6020 0030 4030 8040 2040 6040 005200 5000 4800 4600 4400 4200 4000 3800 3600 3400 3200 3000 2800 2600 2400 2200 2000 1800 1600 1400 1200 1000 800 600 400 200 0 -200 5400

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Ynl Lower Newland Formation Newland Lower

Ynu Upper Newland Formation Newland Upper

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NW SE N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig6_ExplorationDecline.mxd Gold N:\PROJECTS\Tintina Black Butte Copper Project Amendment to Exploration License

2.0 EXISTING ENVIRONMENTAL CONDITIONS

The following sections describe the current understanding of the environment in the vicinity of the project area. An increased understanding of the existing environment would be obtained through ongoing baseline investigations and operational monitoring (which is described in Section 4.0).

A Baseline Environmental Assessment is a study that describes and evaluates baseline (existing) conditions at the project site, prior to construction or operation of the proposed facility. The purpose of the study is to collect information and physical data associated with resources that may be affected by construction and operation of the facility, to facilitate the evaluation of possible impacts and to provide a benchmark against which future changes can be measured. The physical data are typically evaluated through comparison with state standards or guidelines.

An initial consultation with DEQ was undertaken by Tintina in order to identify the types of baseline information and data that DEQ would require to evaluate the mine’s potential to impact the area. The following types of media were identified as important to include as part of the baseline study (Table 2).

Table 2. Potential Resources for Baseline Environmental Assessment/Study Surface Water Wetlands Groundwater Vegetation Waste Rock Characterization Climate Soil Historical/Cultural Wildlife & Fish Sediment Control

Site-specific environmental baseline studies were initiated in 2010 by Tintina following initial consultation with the Montana Department of Environmental Quality (DEQ). These studies were designed to collect environmental baseline data for aquatic, terrestrial and human resources. Some of this work was initiated to acquire baseline data for permitting of the exploration decline, so that the original study areas were limited in scope to the immediate area that would be influenced by the decline. The majority of studies, however, particularly those requiring a longer period of record for environmental permitting of the entire potential mine facility (i.e., surface and groundwater studies), were designed and implemented to cover the entire mine site area of influence.

2.1 Climate The Western Regional Climate Center maintained two weather station stations in the vicinity of the project area beginning in the late 1940s and mid 1960s until the early to mid-1980s (WRCC, 2011). More recent data are available from a station located in White Sulphur Springs (i.e., 1978 through 2005). Average annual temperatures for these datasets are similar and range from about 25 degrees Fahrenheit (F) to 55 degrees F. Recent monthly data from the station located in White Sulphur Springs ranges from an average low of 12 degrees F in January to an average monthly high of 81 degrees F in July. Temperatures could be expected to be somewhat lower at the project area due to its greater elevation compared to the weather stations.

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Precipitation data from the station nearest to the project area (6.5 miles southeast and about 700 feet lower in elevation) show an average annual liquid precipitation of about 16 inches from 1949 through 1981. Further away at White Sulphur Springs annual precipitation averaged about 13 inches between 1978 and 2005. The annual snowfall is considerably different at these two stations with 83 inches historically falling at the station closest to the project area while only 37 inches was measured more recently in White Sulphur Springs. It is difficult to determine whether the apparent difference in snowfall is due to the different location (Black Butte area is much closer to the Little Belt Mountains) and/or the different period of record for each of the weather stations. Annual snowfall at the project area likely falls within the reported range for the two weather stations. Annual evaporation rates for the project area are believed to be between 35 and 40 inches per year as reported by the two stations closest to the site that have evaporation measuring capability; Canyon Ferry Lake (40 miles) and Montana State University in Bozeman (80 miles) (WRCC, 2011).

2.1.1 Weather Monitoring Station In April, 2012, Tintina established an ambient air monitoring station just west of the core shed (Figure 2) to measure wind speed, wind direction, standard deviation of wind direction, temperature at 30 feet and 6 feet, delta temperature, solar radiation, barometric pressure and precipitation. The station was established to accurately characterize the local meteorology and collect baseline data in support of a mine operating permit application, and various ongoing environmental studies. The site is operated by Bison Engineering, Inc., of Helena MT. The meteorologic monitoring station is located just west of the core shed (Figure 2). One quarterly report has been received to date, which presents the data collected during the second quarter (April through June) of 2012 attached as Appendix A (July to September report is in preparation). Meteorological reports contain a description of the monitoring system operations, together with summaries of quality assurance activities, including calibrations and performance audits. The most recent report is attached as Appendix A of this report. Quarterly reports will be summarized in annual reports.

2.2 Air Quality Permitting Montana Air Resources Management Bureau (ARMB) requires an air quality permit for construction, installation, alteration, or operation of any source with potential to emit more than 25 tons per year of regulated pollutants. The Montana Department of Environmental Quality (MDEQ) enforces the rules and regulations related to air quality. In order for an air quality permit application to be submitted or to determine the need for a permit, an inventory of all equipment (stationary, portable, and mobile) that would be required for the project is needed. The inventory includes the manufacturer and model of the equipment to ensure all vendor emission factors and rates are included in the emission inventory calculation. Where those factors do not exist, EPA emission factors based on standard industrial classification codes (SIC) can be used. If the inventory projects less than 25 tons per year of pollutants, Tintina would request a finding from DEQ stating that a permit is not needed. To receive an air quality permit, an application needs to be submitted to MDEQ at least 75 to 90 days prior to construction.

An Air Quality permit is frequently not required for the construction and operations of an exploration decline. Self-propelled vehicles are exempted by ARM 16.8.1102(c). Potential emissions from the main and backup electrical generators with sophisticated emission controls and with proper EPA emission certifications are expected to be less than levels that trigger Prevention of Significant Deterioration (PSD) review. However, detailed information for the two generators and a list of equipment and specifications for all other emissions sources would be

Tintina Resources, Inc. 12 November 7, 2012 Black Butte Copper Project Amendment to Exploration License

compiled for submittal to DEQ’s Air Quality Bureau for review and final determination of potential permitting needs once specific pieces of equipment have been selected for the exploration decline. If a permit is required, one would be applied for.

2.3 Hydrology 2.3.1 General Hydrologic Setting The project area is in the headwaters of the Sheep Creek drainage, a to the Smith River, which is in turn a tributary of the (Figure 1). The site elevation ranges from approximately 5,600 feet to 6,800 feet atop Black Butte. To the west of Black Butte is Butte Creek, also a tributary to Sheep Creek. Sheep Creek is a fifth order stream draining a total of approximately 194 square miles (NRIS, 2011). The project area is located in the approximate upper third of the drainage. There are no gaging stations on Sheep Creek or its . The nearest gaging station is located on the Smith River just below the confluence with Sheep Creek. Base flows at this location rage from approximately 90 cfs to peak flows on the order of 1,500 cfs (USGS Station No. 06077200). The percentage of flow from Sheep Creek is unknown.

The groundwater and surface water monitoring discussed below is being performed to establish baseline flows, water level elevations, and water quality in the vicinity of the project area. The frequency of required sampling, and field and analytical parameter lists were discussed with the Montana DEQ prior to initiating water resource baseline studies. Quarterly sampling of surface and groundwater was agreed upon for all surface and groundwater monitoring sites. The most recent Baseline Water Resources Monitoring Report (second quarter report for 2012) is attached as Appendix B.

Hydrometrics, Inc. (Hydrometrics) of Helena, MT has conducted baseline surface water monitoring for the Black Butte Copper Project during the second quarter of 2011, and for surface and groundwater during the third and fourth quarters of 2011 as well as the first, second, and third quarters of 2012. Water quality samples were submitted to Energy Laboratories in Helena, MT for analyses of physical parameters, common constituents, nutrients, and a comprehensive suite of trace constituents as listed in Table 3. With the exception of aluminum, trace constituents were analyzed for the total recoverable fraction for surface water samples; aluminum was analyzed for the dissolved fraction. All trace constituents for groundwater samples were analyzed for the dissolved fraction. This report summarizes the results of groundwater and surface water monitoring conducted in 2011 and 2012.

Table 3. Parameters, Methods and Detection Limits for Baseline Environmental Assessment/Study Parameter Analytical Method(1) Project-Required Detection Limit (mg/L) Physical Parameters TDS SM 2540C 10 Common Ions Alkalinity SM 2320B 4 Sulfate 300.0 1 Chloride 300.0/SM 4500CL-B 1 Fluoride A4500-F C 0.1 Calcium 215.1/200.7 1

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Table 3. Parameters, Methods and Detection Limits for Baseline Environmental Assessment/Study Parameter Analytical Method(1) Project-Required Detection Limit (mg/L) Magnesium 242.1/200.7 1 Sodium 273.1/200.7 1 Potassium 258.1/200.7 1 Nutrients Nitrate+Nitrite as N 353.2 0.01 Trace Constituents (SW - Total Recoverable except Aluminum [Dissolved], GW - Dissolved)(2) (3) Aluminum (Al) 200.7/200.8 0.03 Antimony (Sb) 200.7/200.8 0.003 Arsenic (As) 200.8/SM 3114B 0.003 Barium (Ba) 200.7/200.8 0.005 Beryllium (Be) 200.7/200.8 0.001 Cadmium (Cd) 200.7/200.8 0.00008 Chromium (Cr) 200.7/200.8 0.001 Cobalt (Co) 200.7/200.8 0.01 Copper (Cu) 200.7/200.8 0.001 Iron (Fe) 200.7/200.8 0.03 Lead (Pb) 200.7/200.8 0.0005 Manganese (Mn) 200.7/200.8 0.005 Mercury (Hg) 245.2/245.1/200.8/SM 3112B 0.00001 Molybdenum (Mo) 200.7/200.8 0.005 Nickel (Ni) 200.7/200.8 0.01 Selenium (Se) 200.7/200.8/SM 3114B 0.001 Silver (Ag) 200.7/200.8 0.0005 Strontium (Sr) 200.7/200.8 0.1 Thallium (Tl) 200.7/200.8 0.0002 Uranium 200.7/200.8 0.0003 Zinc (Zn) 200.7/200.8 0.01 Field Parameters Stream Flow HF-SOP-37/-44/-46 NA Water Temperature HF-SOP-20 0.1 °C Dissolved Oxygen (DO) HF-SOP-22 0.1 mg/L pH HF-SOP-20 0.1 s.u. Specific Conductance (SC) HF-SOP-79 1 µmhos/cm

(1) Analytical methods are from Standard Methods for the Examination of Water and Wastewater (SM) or EPA’s Methods for Chemical Analysis of Water and Waste (1983). (2) Samples analyzed for dissolved constituents field-filtered through a 0.45 µm filter. (3) Samples collected after October 2012 will use updated DEQ-7 required reporting values

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2.3.2 Surface Water Sheep Creek originates in the Little Belt Mountains at an elevation of about 7,600 feet and discharges to the Smith River approximately 34 river miles to the west at an elevation of 4,380 feet. The project area is approximately 17 miles above the confluence with the Smith River which is a very popular destination for recreational fishermen, rafters, and boaters. Sheep Creek is a high quality stream that flows in a meandering channel through a broad alluvial valley upstream of the project site but enters a constricted bedrock canyon just downstream. It is used principally for stock water and fishing (RMI, 2010).

Primary tributaries to Sheep Creek in the immediate project area are Little Sheep Creek, and Coon Creek (Figure 1). Little Sheep Creek is located to the south east of the project area and converges with an unnamed tributary approximately half a mile to the south of Strawberry Butte before converging with Sheep Creek at the southern terminus of Strawberry Butte. Coon Creek follows Butte Creek Road east of Black Butte and joins Sheep Creek at the head of a canyon located almost one mile northwest of Strawberry Butte (Figure 1). To the west of Black Butte is Butte Creek, also a tributary to Sheep Creek. Another unnamed tributary flows westward from the northern side of Black Butte into Butte Creek (Figure 1). Flow in the tributary drainages is only perennial on their lower reaches and ephemeral upstream.

Eleven surface water stations have been established as baseline monitoring sites (Figure 7). Flow, stage and field parameters (temperature, pH and SC) are monitored quarterly at all of these sites. Water quality samples are collected at six of the sites during quarterly monitoring. Monitoring was initiated at these sites in May of 2011 with subsequent quarterly monitoring events scheduled in the months of August, November, March and May of each year.

During the first year of the baseline study from May to November 2011, discharge in Sheep Creek ranged from approximately 21 to 250 cfs at the upstream site (SW-2) and 21 to 612 cfs at the downstream site (SW-1). During the second year of monitoring, there was a decrease in peak flows in the month of May with the upstream Sheep Creek Monitoring site (SW-2) decreasing from approximately 250 cfs in 2011 to 103 cfs in 2012 and the downstream monitoring site (SW-1) ranging from approximately 612 cfs in 2011 to 111 cfs in 2012.

Flow monitoring results for each of the monitoring sites is summarized in Table 2, Appendix B. Flows decreased at all surface water sites from the spring of 2011 to the spring of 2012. This decrease was due to unusually high runoff conditions in the spring of 2011 versus more typical conditions in 2012.

Water quality data for each site is tabulated in Appendix B. Surface water results show neutral to slightly alkaline pH values (6.8 to 8.6), and low to moderate specific conductance (49 to443 µmhos/cm). Major ion chemistry is dominated by calcium and bicarbonate. Metals data show some infrequent excursions above DEQ-7 water quality standards for selected metals (aluminum, iron and manganese) during high runoff events. Surface water standard exceedances were observed for the following constituents: . Total recoverable iron at all sites during peak runoff periods except SW-6 and SW-11 (2011) and SW-3 (2012); . Dissolved aluminum during peak runoff season (2011 only) at SW-1, SW-2, SW-5, and SW-11; and . Total recoverable manganese during peak runoff season (2011 only) at SW-1, SW-2 and SW-10.

Tintina Resources, Inc. 15 November 7, 2012 N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig7_WaterQualityMonitoringSites.mxd

SW-1 Seep-7 Seep-9 P Seep-5 SP-3 D Seep-6 Seep-4

SW-5 MW-4A and P SP-6 MW-1A and MW-4B SW-11 PW-2 MW-1B MW-3 D P D SP-7 SP-2 D ?@ ?@ ?@ PW-4 ?@ PW-1 ?@ ?@ ?@P Seep-3 SP-4 D ?@ SW-3 SW-2 SW-4 DP Decline Alignment Seep-2 SW-6 P SP-1 Seep-1 SW-8 SW-9 MW-2A and PW-3 P P P MW-2B D Seep-10 P Seep-8

SW-10 SP-5 P SW-7 ³ Miles

0 1 Prepared by Hydrometrics, Inc. 2012

Figure 7 D Spring ?@ Groundwater Monitoring Wells Water Quality Monitoring Sites Seep Area Decline Alignment Black Butte Copper Project P Surface Water Sites Meagher County, Montana Black Butte Copper Project Amendment to Exploration License

In addition, the human health surface water standard for thallium of 0.00024 mg/L was exceeded at SW-3 during three separate monitoring events in 2011.

2.3.2.1 Section 303d Listing Sheep Creek is listed under Section 303d of the Federal Clean Water Act for the State of Montana, from its headwaters to its junction with the Smith River. Sheep Creek is listed because it is not meeting all of its beneficial drinking water and contact recreational uses, due to elevated concentrations of fecal coliform bacteria and mercury. The historical mercury data appear to be questionable, however, as it is based on only one data point collected at a relatively high detection limit in 1980; no likely sources of mercury release are known historically. Mercury did not exceed standards during 2011 or 2012 monitoring.

Based on these data, Hydrometrics submitted a memo to DEQ on behalf of Tintina providing recent geochemical data in support of removal of the 303d listing for Sheep Creek. The DEQ responded that they had reviewed the data and were going to recommend removal based on Hg data. However, DEQ noted exceedances for Fe and Al in the analytical data submitted and will be reviewing these data with respect to the 303d listing. It is believed that these exceedances are related to high turbidity flow conditions during a high water sampling event and may reflect impacts of soil run-off.

The State of Montana will develop a Total Maximum Daily Loads (TMDL) for all streams on the 303d list; although Montana has determined that the TMDL for Sheep Creek is a “low” priority it will likely be scheduled for completion in the next few years.

2.3.3 Groundwater The proposed exploration decline would penetrate dolomitic and silicic shales of the Newland Formation. The shale bedrock formations have a thin colluvial cover over most upland areas, but are overlain by thicker Tertiary deposits along the flanks of the major drainages. Quaternary alluvial deposits are present beneath the stream channels and along the axis of the drainages. Limited historical information on the hydrogeology of the decline area is available; however artesian flow from drill holes does occur in the Sheep Creek Valley (RMI, 2010).

An initial set of paired monitoring wells (MW-1A and MW-1B) was installed for baseline groundwater monitoring in June 2011. These wells were completed immediately up-gradient of the Sheep Creek hay meadows in the unconsolidated Tertiary clayey gravel deposits and in the underlying shallow bedrock groundwater system (Figure 7). A second set of paired monitoring wells (MW-2A and MW-2B) was completed in November, 2011near Coon Creek in unconsolidated clayey gravels and underlying shallow bedrock. Monitoring well (MW-3) was completed in November 2011 near the proposed terminus of the exploration decline within the sulfide ore body. A third set of paired monitoring wells (MW-4A and MW–4B) was completed in May 2012 in the hay meadow field north of the proposed mine area and nearby to Sheep Creek. They were installed in the shallow alluvial gravels and shallow bedrock to provide baseline data between the project area and Sheep Creek.

In addition to the monitoring wells, four test wells have been installed to provide information on the hydrologic characteristics of the bedrock. Two of the test wells (PW-1 and PW-2) were installed in November 2011 and two additional test wells (PW-3 and PW-4) were installed in March 2012. Water level and water quality data were collected at these locations during testing; however these wells are not routinely monitored during quarterly baseline monitoring events.

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Water level data have also been collected from various exploration boreholes during hydrologic testing at PW-1, PW-2, PW-3, and PW-4. Well locations are shown in Figure 7 and well completion data is summarized in Table 4.

Potentiometric water level data from May 2012 are compiled in Figure 8 and show an eastward trending groundwater flow direction in the bedrock groundwater system which is consistent with the earlier Cominco results (Chen-Northern, 1989). The potentiometric contours indicate an average hydraulic gradient of approximately 0.08 feet / feet. Paired wells MW-1A and MW-1B have a strong downward gradient during all monitoring events with a head differential between the two wells of 15 to 18 feet. All of the other paired wells show upward gradients with head differences between the paired wells of 0.26 to 0.48 feet.

Figure 8. Potentiometric Surface Map (May 2012)

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Table 4. Well Completion Details

Ground Measuring Easting Northing Filter Pack Well Name Surface Elev. Point Elev. Total Depth Perforated/ Screen (meters) (meters) Interval (feet, (feet amsl) (feet amsl) (feet, bgs) Interval (feet, bgs) bgs) UTM Zone 12 North MW-1A 506935.22 5180841.55 5635.81 5637.73 38 25 - 34 25 - 34 MW-1B 506934.19 5180845.46 5636.14 5637.9 98 88 - 98 88 - 98 MW-2A 506598.18 5180331.93 5743.72 5745.31 62 52 - 62 47 - 62 MW-2B 506596.96 5180328.73 5743.44 5745.53 80 70 - 80 65 - 80 MW-3 506484.07 5180740.22 5760.06 5762.17 305 285 - 305 278 - 305 MW-4A 507201.471 5180855.425 5618.1 est. 5610.1 23 14-23 11 - 23 MW-4B 507200.122 5180858.49 5608.07 est. 5610.07 59 39-59 37-59 PW-1 506301.42 5180698.4 5912.07 5913.74 213 140-211 108-213 PW-2 506443.15 5180865.03 5793.08 5791.28 215 132 - 212 121 - 212 506835.074 PW-3 * est. 5180497.79 est. 5650.6 est. 5652.60 est. 131 90-127 80-130 506901.789 PW-4 * est. 5180688.26 est. 56764.73 est. 5676.73 est. 242 200-239 191-242 * PW-3 and PW-4 have not been surveyed to date (11/05/2012).

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Black Butte Copper Project Amendment to Exploration License

The groundwater quality field data and analytical results are tabulated in Appendix B. Groundwater in the shallow alluvial wells and in shallow bedrock wells is calcium/magnesium bicarbonate type water with near neutral pH and moderately low dissolved solids. One exception is well MW-1B, which has a calcium/magnesium sulfate type water with a lower pH range (6.2 to 6.47) and moderate dissolved solids (338 to 401 mg/L). The water quality at MW- 1B is similar to MW-3 and test well PW-4, both of which are completed in the sulfide ore zone.

Wells completed in shallow unconsolidated overburden deposits include MW-1A, MW-2A and MW-4A. These wells have neutral pH water (7.2-7.4) with low to non-detectable concentrations of dissolved metals. MW-1A, however, periodically exhibits variable water quality with some excursions of arsenic, barium, iron, lead, manganese, and thallium above the Human Health standards. Well MW-1A is screened in fine-grained sediments and has very high turbidity present in the water during sampling events. Monitoring events where metals are detected at higher concentrations at this well may reflect breakthrough of particulate through the filters due to the very high turbidity.

Wells completed in shallow bedrock above the sulfide ore zone include MW-2B, MW-4B and test wells PW-1, PW-2 and PW-3. Dissolved trace constituents that are present at detectable concentrations in the shallow bedrock wells include arsenic, barium, iron, manganese, strontium, thallium, and uranium. Water quality at test well PW-1, PW-2 and PW-3 exceeds the secondary drinking water standards for iron (0.3 mg/L) and manganese (0.05 mg/L) (neither of these secondary standards are currently listed numeric water quality standards in Montana’s October 2012Circular DEQ-7), and the concentration of thallium at MW-2B (0.0031-0.0036 mg/L) exceeds the human health standard of 0.0024 mg/L. Thallium concentrations at the other shallow bedrock wells are below regulatory limits. All other parameters in the shallow aquifer meet applicable regulatory limits.

While thallium is also present at detectable concentrations in MW-3 and PW-4 it does not exceed the human health standard. All of the ore zone wells exceed the secondary drinking water standard for iron, and MW-1B and PW-4 also exceed the secondary drinking water standard for manganese (neither of these secondary standards are currently listed numeric water quality standards in Montana’s October 2012Circular DEQ-7).

Wells completed in the sulfide ore zone (MW-3 and PW-4) have the highest concentrations of dissolved solids and sulfate compared to the other wells. As previously discussed MW-1B has similar water quality to these ore zone wells. The pH of water at these ore zone wells ranges from 6.2 to 7.1 which is slightly lower than other wells. Dissolved trace constituents that are present at detectable concentrations in the ore zone wells include arsenic, barium, cobalt (MW- 1B only), iron, manganese, mercury, nickel, strontium, thallium, and uranium. Strontium concentrations are elevated (9.3 to 16.2 mg/L) at MW-3 and PW-4 and exceed the human health standard of 4 mg/L. Arsenic concentrations at MW-1B, MW-3 and PW-4 range from 0.054 mg/L to 0.067 mg/L and exceed the human health standard of 0.010 mg/L. Arsenic speciation of samples from MW-1B and MW-3 indicate that the majority of the arsenic is present in reduced form as As (III). Concentrations of thallium at MW-1B (0.013 mg/L) also exceed the human health groundwater standard of 0.002 mg/L.

2.3.4 Wetlands Delineation The Project Wetland Survey was completed the fall of 2011 (Hydrometrics 2011b). The survey identified 28 wetland sites comprising approximately 268 acres associated with perennial streams (including Coon Creek, Little Sheep Creek and Sheep Creek), Sheep Creek Meadow,

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ephemeral drainages, and springs and seeps in the Project study area. Wetland locations identified in the project study area are shown in Figure 9. Mapping of wetland locations and associated seeps/springs at a more interpretable (larger) scale is presented in a series of descriptions, figures, areal estimates, and tables in Appendix C.

Vegetation observed in the wetland sites included hydrophytic grasses, grass-like (e.g., sedge), shrubs, and trees. Hydrologic indicators observed at these sites included perennial stream flow, evidence of ephemeral stream flow, standing water, saturated soils and evidence of early- growing season saturation. The most typical character of Project Area wetlands is hydrophytic vegetation (grass, grass-like and shrub) growing in linear riparian corridors on saturated soils along perennial and ephemeral drainages. These wetlands generally transition to wider, dry channels and swales in upper drainage reaches where wetland features (hydrophytic vegetation and supporting hydrology) become isolated and absent.

Localized wetlands were noted in the immediate area of all upper drainage springs, seeps, and springs/seeps developed to support livestock watering. These wetlands are characterized by hydrophytic vegetation (grass and grass like) stabilizing lower-gradient riparian sites on saturated soils that are subject to trampling by livestock.

Larger wetland complexes are present at upper Coon Creek and lower perennial drainage locations on Coon Creek, Little Sheep Creek and Sheep Creek Meadow in the project study area. These wetland complexes are characterized by hydrophytic vegetation (grass, grass-like and shrub) growing in broader, less-incised riparian sites on saturated soils in perennial drainages. These sites generally provide high quality habitat and buffer site stability. Fewer wetlands in the project area are isolated without a direct connection to perennial drainages. These sites support grass and forested wetlands that provide high quality habitat.

Although wetlands, seeps and springs are present in various places throughout the Project area, the proposed portal location, and related support facility sites required for the construction of the exploration decline have avoided disturbance of all wetland areas. Therefore no US Army Corps of Engineers or DEQ permits for wetland disturbance are needed. In addition, Tintina does not expect exploration decline dewatering to affect or dewater wetlands.

2.3.5 Seeps and Springs Delineation As a part of the initial water resource evaluation, nine seeps and 13 springs in the Project area have been identified, mapped and some sampled for water quality and flow as a part of an inventory completed in 2011(Hydrometrics 2011a). A second series of flow and water quality sampling of seeps and springs was collected during July 2012. A number of springs discharge along the Volcano Valley Fault where the Flathead Quartzite is in contact with the Newland formation (Chen-Northern, 1989). Seeps and springs are identified on both Figures 7 and 9.

Observed flow rates at the springs ranged from 1 gallon per minute (gpm) to as much as approximately 50 gpm. Water samples were collected at five of the primary spring sites (SP-1, SP-2, SP-3, SP-4 and SP-6) that surround the proposed exploration decline area, and two surface water locations (G-1 and G-2 on Figure 9) where gossan (an iron oxide deposit) is exposed in outcrop in the streambed. The springs generally exhibit neutral to slightly alkaline pHs (6.8-8.0) with moderate to high alkalinities (61-240 mg/L). Background nitrate concentrations were low (<0.1 - 0.68 mg/L) at all of the spring sites. Metals concentrations were within regulatory limits; however, manganese at springs SP-1 and SP-2, which slightly exceeded the recommended secondary standard for drinking water of 0.05 mg/L, and iron at

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Seep-7 Seep-5 &) DS-6 Seep-6 &) SP-3 DS-5 Seep-9 D Seep-4

DS-4 &) S &) H E E P DS-3 C R SP-7

SP-6 R D D SP-2 D D Decline Alignment

Seep-3 SP-4 D

(F SP-1 Seep-8 O R &) ES Gravel Pit Outfall T RD D 119) # DS-2 Seep-2 Seep-1

Seep-10 DSP-5 &)

DS-1

# Gravel Pit Outfall Seep Area D Spring Wetland &) Developed Spring/Seep Sheep Creek Meadow ³ Miles Dry Stream Channel 2011 Study Area Decline Alignment Non-Reconnaissance Area 0 1 N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig9_WetlandsSurvey.mxd Prepared by Hydrometrics, Inc. 2011 Figure 9 Wetlands Map Black Butte Copper Project Meagher County, Montana Black Butte Copper Project Amendment to Exploration License

SP-3 exceeded the recommended secondary drinking water standard of 0.3 mg/L. SP-3 also had slightly higher concentrations of some dissolved metals (Al, Cu, and Cr) but all were well below regulatory standards. Other samples from springs originating from gossan sites showed similar water quality to the spring samples with no major differences in dissolved metals concentrations. Total metals concentrations at one of the gossan sites (G-2) exceeded the secondary drinking water standard for iron and the numeric drinking water standard for thallium.

2.3.6 Aquifer Testing An initial aquifer test was completed for the project which used open PQ and HQ core holes (core diameters of 85 and 63.5 millimeters, respectively) to conduct preliminary tests (Tetra Tech 2011a). The test was designed to provide, for planning purposes, a very rough estimate of water volumes that might be expected during development of the ore deposit. The values obtained from this suggest, as a preliminary estimate, that water volumes as large as 400 to 600 (gpm) might be expected to be produced from the mined deposit zone during production, but are inconclusive due to the limited quality of the holes for this testing purpose.

A more rigorous aquifer testing program was designed to refine the earlier estimate of the likely water production volume that would be encountered during mining of an earlier proposed exploration/exploration decline (2011 decline) location located to the north of the existing exploration decline site (Hydrometrics 2012b). This testing utilized the previously installed well pair MW-1A and -B as observation wells and as MW-2A, MW-2B, and MW-3 that were installed in conjunction with the aquifer test program. Pumping wells PW-1 and PW-2 were also installed for the aquifer test. Based on the pump test wells, steady state decline inflows between 160 and 500 gpm were predicted for the 2011 this exploration decline. The completion details of these wells are provided above in Section 2.3.3 (Table 4).

The most recent aquifer assessment for the currently proposed 2012 decline location, included installation of two new wells (PW-3 and PW-4). In addition two existing exploration holes SC12- 116 and SC12-117 were also used as observation wells. The locations of the test wells and monitoring wells are shown on Figures 7 and 9. Forty-eight hour pumping tests were conducted at test wells PW-3 and PW-4 to establish aquifer characteristics for the bedrock units that would be encountered along the path of the proposed exploration decline. Aquifer test results were analyzed using AQTESOLV (v.4.01) to calculate aquifer transmissivities, hydraulic conductivities and storage coefficients. Analyses were performed using several analytical solutions including the Theis (1935) solution for confined aquifers, the Theis recovery solution, the Hantush-Jacob (1955) solution for leaky confined aquifers and the Moench (1984) dual porosity solution for fractured rock systems. Curve-matching graphs for PW-3, PW-4 and SC12-16 are included in Appendix D.

Both PW-3 and SC12-116 yield similar hydraulic conductivity estimates for the PW-3 pumping test, with estimated hydraulic conductivity values ranging from 1.1 to 2.2 feet/day (Table 5). The analysis of PW-4 drawdown yielded hydraulic conductivity estimates of approximately 0.01 to 0.02 ft/day.

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Table 5. Calculated Hydraulic Conductivity from Aquifer Test Results

Hydraulic Conductivity (ft/day) Pumping Obs. Leaky-Confined Test Confined Solution Bedrock Solution Well Solution Well Theis Theis recovery Hantush-Jacob Moench PW-3 2.1 1.1 2.2 1.6 PW-3 SC12-116 1.2 1.7 1.1 1.3 PW-4 PW-4 0.016 0.017 0.010 0.010

2.3.7 Decline Inflow Analysis Analytical solutions were used to estimate rates of groundwater inflow into the proposed decline. These analytical solutions yield generalized predictions representing average inflow rates over time and are based on a large scale analysis of flow through the bedrock systems.

The results of the hydrologic investigation were used to develop the decline inflow analysis. The potentiometric data from the investigation indicate that the initial 1700 feet of the decline is likely to lie above the regional water table as shown in the cross-section depicted in Figure 6. Hydrologic characteristics at test well PW-3, located near Coon Creek are assumed to be representative of the next 1200 feet of the decline, which penetrates the lower Newland formation above the ore body. Test results from PW-4 are assumed to be representative of the remaining 2300 feet of the decline that extends down through and beneath the ore body (Figure 6).

Groundwater inflow rates to the decline were calculated assuming homogenous/isotropic conditions. The calculations are based on linear flow and assume the water table does not drawdown below the decline. Steady state groundwater inflow rates to the decline are calculated using both Darcy’s Law and the Herth and Arndts (1973) solution.

The calculated groundwater inflow results for each section of the decline are shown in Table 6. These estimates assume no grouting or other control measures to reduce decline inflows. The first 1700 feet of the decline would be above the regional water table and therefore should not receive any direct inflow from the groundwater system. This portion of the decline may, nevertheless, receive some seasonal seepage due to direct infiltration however, seepage inflow should be minimal.

The next section of the decline from 1700 feet to 2900 feet (distance from portal) is projected to have the highest rate of groundwater inflow receiving approximately 175 gpm to 615 gpm (Herth and Arndts vs Darcy’s Law estimates, respectively) of inflow from the shallow bedrock groundwater system.

As the decline continues downward it would encounter more competent, lower permeability bedrock and the predicted rate of groundwater inflow decreases significantly. The remainder of the decline is estimated to contribute less than 15 gpm of inflow (Table 6).

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Table 6. Results of Inflow Analysis

Section of decline Herth and Arndts Darcy’s Law (ft. from portal) (gpm) 0-1700’ -- -- 1700-2900’ 175 614 2900-5200’ 10 12 Total* 190 630

*Results rounded to two significant figures

The flow rate estimated from Darcy’s Law solution is significantly higher than estimates using the Herth and Arndts solution. The difference is due to an assumed gradient of 1 for the Darcy’s Law analysis. This is a very conservative assumption. It assumes that the inflow never lowers the water table to the elevation of the decline, which would actually occur within a fairly short time frame in the shallow bedrock aquifer based on the aquifer test results. Therefore, the Darcy’s law flow estimate would be most representative of initial inflow rates (Hydrometrics 2012).

2.3.8 Water Rights Water demands for the expanded exploration activities are anticipated to be less than 35 gallons a minute and 10 acre-feet a year of ground water and therefore can be met with an exempt well.

2.4 Geology Site geology is described in detail by RMI (2010) and in Section 1.4. An environmental geochemical monitoring program to evaluate the behavior of mined waste rock (i.e., acid generating and metal mobility potential) is discussed in Section 4.1.3.

2.5 Soils The NRCS has completed a soil survey in the immediate vicinity of the proposed exploration decline and in other portions of the Project Area (NRCS, 2011) (Figure 10). Some areas were not included in the survey, particularly the area to the north of the Jeep trail, north of the Project area (Figure 10), some small areas located between this Jeep road and Butte Creek Road, and the area south of the Sheep Creek road in the vicinity of Little Sheep Creek.

The soil survey data show that soils near the decline location and in areas under consideration for land application disposal areas (LADs) primarily consist of two soil mapping units, 340D and 1175D (Table 2 and Figure 10) along with a smaller area of map unit 38E. Additional mapped soils are present within the broader Project Area (Table 7). Soils within the area are rated as being either poor or fair for use as a topsoil source or as reclamation material according to the NRCS soil survey due to shallow depths to bedrock, or a high percentage of rock fragments within the soil. Area soils are rated as having a high potential for subsequent reclamation if disturbed in place then re-vegetated.

Tintina Resources, Inc. 25 November 7, 2012 372E 1176E NOTCOM

950F 464E 340D

1176E NOTCOM

172E 464F 372E 264E 1176E 950F

1175D

950F

1175D NOTCOM

138E 172E

38E 171F

70D 138E

38D 70E 38E 1176E 172E 70D ³

1175D SCALE IN FEET

170E 138E 0 1,000 N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Figure10_Soils.mxd N:\PROJECTS\Tintina Soil Map Units: 38E, 1175D etc. refer to NRCS (2011) Soil Mapping Units. See Table 1. NOTCOM - NRCS soil survey not completed in this area. Figure 10 Soils Map Black Butte Copper Project Meagher County, Montana Black Butte Copper Project Amendment to Exploration License

Table 7. Soil Types Near Proposed Black Butte Copper Exploration Decline1 Topsoil Reclamation In-Place Map Unit Name Description Source Material Restoration Number Rating Rating Rating Soil types at decline portal and potential LAD areas Woodhall- Loamy-skeletal,

Woodhurst mixed, superactive Poor Fair High 38 E complex Ustic Argicryolls Burnette- Fine, smectic, Pachic 340D Lymanson-Adel Fair Fair High Argicryolls loams Stubbs- Fine-loamy, mixed, 1175D Copenhaver superactive Pachic Fair Fair High complex Argicryolls Other soil types in the surrounding area Fine-loamy, mixed, Tripet, rubbley- 172E superactive Ustic Poor Fair High Libeg complex Argicryolls Parkview, Loamy-skeletal, extremely 372E mixed, superactive Poor Poor High oulder-Grafen, Ustollic Haplocryalfs rubbly complex Maiden-Lap-Rock Maiden-Lap-Rock 464E Poor Poor High outcrop complex outcrop complex Loamy-skeletal, Kimpton-Zade 1176E mixed, superactive Poor Fair High families complex Ustic Haplocryalfs

1 Data from Meagher County Soil Survey (NRCS 2011).

2.5.1 Soil Suitability and Volume for Reclamation Field verification of the county soil survey was completed in the Project Area to confirm soil classifications, and to determine the depth of salvageable soil for reclamation uses in areas likely to be disturbed during construction of the exploration decline and associated facilities. Physical data collected during the field survey include horizon depths, texture, structure, color, and reaction with hydrochloric acid. Samples were submitted to an analytical laboratory for determination of saturated paste pH and electrical conductivity, nutrient content (N – as nitrate, P, K, and organic matter), sodium adsorption ratio (SAR), and gradation including coarse fragment content. Chemical parameters were measured in the A (surface) and B (subsoil) horizons from each sampled location shown on Figure 10.

In addition, composite samples representing the A and B horizons from soil mapping units 340D and 1175D (Copenhaver soil type), and a discrete sample representing the Stubbs soil type from mapping unit 1175D were submitted for analysis of 16 saturated paste extractable metals. Discrete samples from two unmapped units were submitted for analysis of saturated paste extractable arsenic, iron, manganese, and selenium concentrations. Field and lab data are

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provided in Appendix E along with the Meagher County Soil Survey descriptions for mapping units 38E, 340D, and 1175D which are the soil units in areas selected as potential LAD sites. Field verification confirmed the accuracy of soil descriptions and boundaries provided by the county soil survey in the vicinity of the decline portal and proposed LAD areas. The only exception was the soil profile at location SP-6 appeared different than the NRCS description for mapping unit 340D, indicating that the boundary of the unmapped unit to the northeast of this location may extend to the SP-6 location. The soil profile at the location BB4 (not mapped by the NRCS) was observed to be the same as at location BB3 (map unit 1175D) indicating that this soil mapping unit extends eastward at least as far as the BB4 location. At location BB5 the soil was observed to be deep and organic rich and supported vegetation indicative of wetter conditions (e.g. sedges and dense grass) compared to the sage dominated vegetation to the west. Similar moist conditions and standing water on the soil surface were observed approximately 700 feet to the north of BB5 also suggesting that a transition to another soil type occurs in this area.

Soil samples collected across the project area were fine textured with clay loam surface horizons and clay loam or silty clay loam subsoil horizons. Coarse fragment content ranged from 7% to 27% in surface horizons (17% average) and from 10% to 52% in subsoil (28% average). Soil pH was slightly acidic, ranging from 5.3 to 7.7 (average of 5.8). Electrical conductivity and SAR values were low, and along with pH data, show that these soils are not saline or sodic. Organic matter concentrations ranged from 3.27% to 6.43% in the surface horizons and from 0.87% to 3.15% in subsoil horizons. Average Nitrogen, Phosphorus, and Potassium were respectively <1, 2.7, and 296 mg/kg.

The decline portal would be collared in the Copenhaver soil type in mapping unit 1175D (Figure 10). This is a shallow soil with a clay loam surface horizon to a depth of about 7 inches below ground surface (Table 8). Subsoil textures range from clay loam to sandy clay loam with about 16% coarse fragments to depths of around 20 inches. Bedrock is encountered below this depth. Salvageable soil volumes are limited mostly by the shallow depth to bedrock although the fine textured surface horizons may require amelioration with mulch or other organic amendments and fertilizer to promote successful revegetation.

Saturated paste extractable metal concentrations were below the practicable quantification limits for most metals from all samples. Detected metal concentrations are listed in Table 9 while reporting limit values for non-detected metals are included with the laboratory report in Appendix E. Any runoff from soil stockpiles or reclaimed areas is expected to be the same as from undisturbed soil with regard to metal mobility. These data show that aluminum, barium, copper, iron, and manganese can be mobilized from area soils however it is not clear whether in-situ conditions would result in concentrations exceeding pertinent standards in run-off from stockpiled soil, LAD, or reclaimed areas. Further, it is not clear to what extent undisturbed soils are currently contributing to metal concentrations measured in surface water or groundwater.

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Table 8. Summary of Data for Soil to be Salvaged from Decline Portal Area1 Salvage Volume Coarse Depth Sodium Phos- Organic per Fragment pH Conductivity Nitrate Potassium Horizon Increment Texture Adsorption phorous Matter Disturbed Content (s.u.) mmho/cm (mg/kg) (mg/kg) (inches) Ratio (mg/kg) (%) Acre (%) (Cubic Yards) Copenhaver Component of Soil Mapping Unit 1175D Clay A 0 to 7 7.5 5.8 0.3 0.1 1.0 2.6 430 4.82 941 Loam Clay Loam to Bt and Bk 7 to 20 Sandy 16 6.0 0.2 0.2 <1.0 3.4 271 1.4 1,748 Clay Loam Not R 20 to 48+ Rock 90 ------2 Desirable 1 Data is average from soil profiles SP-10 and SP-11. 2 Soil is not desirable for salvage due to high coarse fragment content.

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Table 9. Summary of Saturated Paste Extractable Metal Analysis

Aluminum Barium Copper Iron Manganese Identification Horizon Saturated Paste Extract Concentration (mg/L) Mapping Unit 340D A 5.9 0.7 0.04 8.40 0.26 (Composite SP1, B 8.8 0.4 0.02 7.28 0.15 SP2, and SP3) Mapping Unit 1175D A 3.3 0.4 0.02 2.98 0.18 (Copenhaver Composite SP7, B 3.9 0.3 0.01 5.81 0.53 SP10, and SP11) Mapping Unit 1175D A 0.8 0.4 0.01 5.52 0.27 (Stubbs SP-5) B 0.5 0.3 0.01 1.52 0.16 Unmapped A ------20.0 0.14 (SP-6) B ------7.28 0.06 Unmapped A ------6.61 0.32 (SP-8) B ------15.2 0.33 -- = Not Analyzed

2.5.2 Soil Suitability for Land Application of Mine Water Ten areas (sites A through J on Figure 11) were evaluated for potential operations of LAD systems based on soil type, landscape position, and hydraulic properties. These areas are located in the vicinity of the mine portal and are considered for use in combination with various source control techniques (grouting and groundwater pumping) during initial dewatering of the mine decline and future dewatering prior to mining.

During field activities, constant head tests were conducted using double-ring infiltrometers (ASTM D 3385-88) to measure saturated hydraulic conductivity of surface soil and shallow subsoil. These data were used to evaluate the suitability of different locations for construction and operation of surface and shallow subsurface LAD systems such as sprinkler irrigation systems or shallow drain fields to dispose of excess water. Deep (approximately 12 feet below ground surface) falling head percolation test pits were also used to measure hydraulic conductivity of underlying geologic materials to evaluate the suitability for deeper LAD systems. Results of these tests are included in Appendix E.

This section describes the conceptual maximum LAD application rates that can be expected based on LAD system discharge area and site-specific infiltration rate / saturated hydraulic conductivity values. Potential soil stability, changes to down gradient water quality, and other factors must also be considered. These factors would be monitored during LAD operations and discharge volumes would be adjusted to avoid adverse impacts.

In general, surface soil horizons have limited ability to infiltrate water, hydraulic conductivities decrease with depth within the soil profile due to higher clay concentrations that increase with depth.

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NOTCOM 6.3 Acres 372E SP-2 Perc- D 1176E Perc-A D SP-6 33.2 Acres Decline Alignment A 464E 950F 340D SP-3 SP-5 SP-1 SP-13 Perc-B Perc F B 9.0 Acres 1176E NOTCOM 9.7 Acres Perc-CC 172E 464F 372E 264E SP-8 SP-4 1176E 950F Perc G 44.8 Acres SP-7 SP-10 Perc E SP-12 Perc-H G SP-9 19.5 Acres BB4 E F 1175D BB3 (Observed - Not Tested) SP-11 H 950F 11.9 Acres Perc-I Projected Extent of Map Unit 1175D BB5 35.8 Acres 1175D NOTCOM K

138E 172E BB1 BB2 14.0 Acres J 38E I 171F

14.9 Acres 70D 9.4 Acres 138E

38D 70E 38E 1176E 172E 70D ³

1175D SCALE IN FEET

170E 138E 0 1,000 N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Figure11_SoilInfiltrationTestingMap.mxd N:\PROJECTS\Tintina Soil Map Units: 38E, 1175D etc. refer to NRCS (2011) Soil Mapping Units. See Table 1. NOTCOM - NRCS soil survey not completed in this area. Figure prepared by Tetra Tech, Inc. 2012 Figure 11 Soil Infiltration Testing Map Deep Percolation Test Site Soil Profile (Described) Decline Alignment Black Butte Copper Project Infiltrometer Test Site Soil Profile (Described and Sampled) Sampling Areas Meagher County, Montana Black Butte Copper Project Amendment to Exploration License

Therefore, land application via surface irrigation or shallow drain fields would not be of optimum efficiency in these areas and would only be possible on a seasonal basis and possibly of limited duration. This finding is consistent with NRCS data which rates these soils’ ability to infiltrate water as “very limited” due to slow water movement based on modeled results (NRCS, 2011). Soil at location J is of a more sandy texture and infiltrated water much more quickly compared to other area soils (Figure 11). This location is preferred for water disposal strategies involving surface irrigation and is discussed below.

Hydraulic conductivities of the deep paralithic (weathered fractured bedrock) material underlying surface soils at locations A, B, D, and G was limited by the dense clay-rich nature of this material. As a result these areas are considered unsuitable for operation of deep subsurface LAD systems. Locations B and C are also poorly suited for LAD operations because of their location in low-lying or swale areas where the presence of hydrophilic vegetation (e.g. rushes and willows) and the proximity to mapped seeps and springs (Figures 7 and 9) suggests seasonally wet conditions.

However, at locations E, F, H, and I shallow soils (Copenhaver soil type of mapping unit 1175D) overlay highly fractured shale (F, H, and I) or gabbro (E) material. These materials had relatively high hydraulic conductivities and therefore locations F, H, I and to a lesser extent location E, are preferred as sites to construct subsurface LAD systems. Location K was not investigated during field activities but is inferred to have similar soil and parent material properties as locations H and I based on its location, vegetation, and landscape position. Therefore this location is also favorable for operation of a subsurface LAD system.

The average hydraulic conductivity calculated for the two deep percolation test pits in location F is 22 ft/day (Appendix E). Assuming a LAD system could be constructed beneath the shallow soil profile (approximately 2 feet deep) at the surface of or within the fractured shale parent material location F has the capacity to percolate about 4,887 gpm per acre of LAD system trenching. A LAD system could be located near the top of the broad ridge at location F and built to the size required to dispose of the actual volume of water to be discharged however potential impacts to down gradient wetlands should be evaluated. It is important to note that it is not technically possible to discharge water evenly across the entire LAD area using a subsurface piping system. Therefore the discharge rates described for such a system should be considered the maximum volume possible per unit LAD trenching area and not the amount possible per total unit land surface area.

Similar percolation rates were measured for locations H and I located to the southeast and on the opposite side of the surface water divide from location F. Percolation rates measured at location H ranged from 32 ft/day to 450 ft/day. Percolation at location I was 26 ft/day. It is likely that the high percolation rate of 450 ft/day measured at the eastern end of location H is due to isolated fracture conditions in the underlying bedrock. Therefore the conservative rate of 32 ft/day is used to represent this location during calculation of likely water disposal rates. Based on these data the water disposal capacity of locations H and I (per acre of LAD system trenching) are 7,241 GPM and 5,924 gpm, respectively (Appendix E).

Using the average water disposal capacities determined for locations F, H, and I gives an overall capacity of 6,000 gpm per acre of LAD trenching for the area of soil mapping unit 1175D located south of the decline portal along the broad ridge separating Little Sheep Creek and Coon Creek. Additional water disposal capacity would be available by operating a subsurface LAD system in locations E, K, and J as shown in tables contained in Appendix E. Geochemical

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testing of the gabbro that underlies location E would be warranted to evaluate its potential to contribute to metal loading during LAD operations prior to discharging water in this area.

It would also be possible to discharge water using a sprinkler irrigation-type LAD system on a limited seasonal basis. The preferred location for such a system is location J due to the highly transmissive sandy soil that is present in this location. The soil in this area overlies fractured igneous rock which also percolates water at a rapid rate. Water applied to the soil surface would infiltrate and percolate at a rate limited by the most restrictive soil or lithic horizon encountered along the flow path. At location J the soil surface and the underlying bedrock have similar hydraulic conductivities, about 10.3 feet/day (Appendix E). This equates to a water disposal capacity of about 2,300 gpm per acre of land surface for the 9 acre site.

Additional locations that could be considered for irrigation-type LAD systems are locations A and F (depending on whether a subsurface LAD system was operating at location F). Location A could be considered for irrigation due to the size and relative flatness of this area as well as its distance from seeps/springs. Operation of such a system at location F would also be possible due to shallow soil thickness and high conductivity of the underlying shale. At location A the average saturated hydraulic conductivity is restricted by the underlying paralithic material (0.07 ft/day) which equates to a continuous infiltration rate of 15 gpm per acre (Appendix E). Using the same calculations and data for location F gives a range of infiltration rate from 270 gpm per acre.

2.6 Mining Waste Geochemical Characterization This section describes the baseline characterization of acid generation and trace element release potential, and asbestiform mineral occurrence, for rock that would be intercepted during construction of the proposed decline. A complete Baseline Geochemistry Evaluation report is attached as Appendix F.

The following summarizes the methods and results of multi-element whole rock (ICP, n=318), Acid Base Accounting (ABA, n=48), Net Acid Generation (NAG, n=48), Synthetic Precipitation Leaching Procedure (SPLP, n=8), and asbestiform mineral characterization (n=8) analyses for samples collected from drilling along the alignment. The proposed decline is designated as the 2012 Johnny Lee decline.

Recognizing the locally massive sulfide character of portions of the black shale and dolomite- hosted Cu-Co-Ag mineralization in the Black Butte Copper deposit, rock from the 2012 Decline would be selectively handled and placed into designated waste rock repositories based on non- acid generating (NAG) and potentially acid generating (PAG) classification. The objective of the study completed by Enviromin and Tetra Tech (2012) was to characterize the rock using static methods of evaluating acid rock and metal release potential, in order to identify selective handling criteria and monitoring/mitigation requirements.

2.6.1 Sampling and Analysis Methods The zone of exploration interest targeted by the 2012 decline is the Upper Sulfide Zone (USZ), which hosts copper-cobalt mineralization in the calcareous shale of the lower Newland Formation (RMI, 2012). As shown in Figure 12, the USZ zone is overlain by shale and dolostone (Ynl), with locally massive sulfide (01 SZ sulfide zone) and dolomite (Ynl0 “Nose”) interbeds, and underlain by the lower Newland footwall shale and conglomerate (Ynl B). The 135,000 tonnes of rock to be produced by the decline would thus be comprised of IG (<1%), 00/1 sulfide (5%), Ynl (41%), Ynl0 (6%), USZ (11%), YnlB (26%), and copper ore (10%).

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Lithotypes intercepted by 2012 Black Butte Decline

IG Igneous Intrusive

Stratigraphic marker 00/1 delineates upper and SZ 00/1 Sulfide Zone lower Newland

Undifferentiated shale Ynl Lower Newland and dolostone

Ynl O Lower Newland "Nose" Dolomite

Sub 0 Lower Newland sulfide Sulfide bed in Ynl above SZ zone USZ

USZ Upper Sulfide Zone Massive sulfide ore zone

Ynl B Lower Newland footwall Shale and conglomerate

Figure 12 Black Butte Copper Stratigraphy Black Butte Copper Project Meagher County, Montana

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Individual samples were chosen for static testing from 318 drill samples using statistical analysis of multi-element ICP results following four-acid digestion (ALS Chemex, method MEICP61a). Acid generation potential was measured using the Modified Sobek acid base accounting and NAG pH methods (INAP, 2012). These results were then used with the multi-element data to develop 8 composites for metal mobility analysis using the U.S. EPA Method 1312 SPLP protocol. These composites were also analyzed by the RJ Lee Group following U.S. EPA protocol to test for the presence of asbestiform minerals. Further detail on the sampling and analysis program is provided by Enviromin and Tetra Tech, 2012. The number of samples and analyses are summarized by lithology in Table 10.

Table 10. Summary of Geochemical Samples for Black Butte Copper 2012 Exploration Decline Whole Rock 2012 Drill Total Static Test Metal Mobility Lithotype Core Element Samples1 Composites2 Intervals Analyses1 Number of Samples IG 15 15 8 1 USZ 14 14 11 2 Ynl 195 195 9 2 Ynl O 17 17 6 1 Ynl B 7 7 7 1

2.6.2 Results There are no identified asbestiform minerals in any of the lithotypes to be mined from the 2012 decline at Black Butte Copper.

The ABA and NAG pH results are compared in Figure 12 by lithotype and show the net neutralizing character of all waste lithotypes except for the USZ, and one sample of the lower Newland (Ynl). NAG pH values below 4.5, and NP:AP values less than 3 are considered to be potentially acid generating for this baseline study (INAP, 2012). The comparison of final NAG pH and NP:AP provides a clear distinction between potentially acid forming and non-acid forming materials. The NAG and ABA methods show good agreement with one another, except for the low Fe USZ samples, several of which are classified as non-acid forming by NAG but as uncertain using the NP:AP ratio (with values between 1 and 3).

Results of this study indicate that the igneous intrusive (IG), lower Newland dolomite “nose” (Ynl0), lower Newland footwall shale and conglomerate (YnlB), and much of the undifferentiated lower Newland Formation (Ynl), are strongly net neutralizing and are unlikely to generate acid. These rocks can safely be designated as non-acid generating (NAG), as shown in Figure 13. Apart from the IG, which showed elevated concentrations of Al, Fe, and Cr in SPLP extracts, these NAG lithotypes also have low potential to release metals in concentrations that exceed groundwater standards, suggesting that they can safely be stockpiled off liner with appropriate monitoring and mitigation. Based on SPLP results, potential does exist for leachate concentrations to exceed surface water standards for aluminum, iron, chromium, and selenium, particularly from the IG, indicating that care should be taken to prevent surface discharge from the rock pile facilities. Further detail on these results is presented in a separate report by Enviromin and Tetra Tech (2012) and included with this report as Appendix F.

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Figure 13. Black Butte Copper 2012 Decline, Acid Generation Potential

The USZ is strongly acidic and should be handled as potentially acid generating rock (PAG), on a lined pad in the PAG facility. Given the small tonnage of IG that would be intercepted, it may be best to place it in the PAG facility as well, to avoid any associated release of metal. Although the 01 SZ sulfide zone that delineates the transition from upper to lower Newland was not tested in this program, it is clearly sulfidic and should be managed as PAG. The occurrence of one uncertain sample, in the relatively small population of Ynl samples (n=9), is problematic and would require further exploration during construction of the decline. At this low level of initial sampling, it is not possible to assign true frequency of NAG and PAG materials within the Ynl with confidence. Review of the stratigraphy in drill logs indicates that sulfide in the upper Ynl (above the Ynl 0 dolomite) occurs in trace quantities and local interbeds within carbonaceous rock and may only be locally enriched to concentrations that produce acidity. In the lower Ynl, sulfide content is higher and more consistent, with local interbeds like the sub 0 SZ, as the rock transitions to the more massive sulfide mineralization of the lower ore zones. If the frequency of acidic rock in the overall Ynl is low, it may be possible to rely on the strongly net neutralizing character of the remaining Ynl and other non-USZ lithotypes to neutralize any acid that is produced; this is particularly true of the upper Ynl in the vicinity of the 2012 decline. Available data cannot fully support this conclusion, however, and the collection of additional Ynl samples for static testing is highly recommended prior to placement of any Ynl in the NAG waste rock facility. Table 2.1 in Appendix F presents tonnage data for each of the lithotypes discussed.

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2.6.3 Conclusions Results of the baseline geochemistry study for the 2012 decline suggest that as much as 70% of the 137,000 tons of rock to be mined during exploration decline construction is non-acid generating with very low potential to release metals. The USZ, as expected, is acid generating, and should be handled as PAG, along with the IG and any acidic portions of the Ynl. Remaining rock can be placed as NAG.

The construction of the 2012 exploration decline provides an opportunity for Tintina to advance understanding of sulfide distribution and environmental geochemistry within the lower Newland formation, the results of which would benefit the broader environmental geochemistry program for the proposed mining operation. More importantly, it provides an opportunity for Tintina to demonstrate an ability to selectively handle and appropriately manage potentially acid generating rock.

2.7 Biological Resources Reconnaissance level baseline studies have been conducted to characterize wildlife habitat and assess the potential for plants and animals of conservation concern to be present within the proposed project area. The Biological resource Report for the Black Butte Copper Project area is attached as Appendix G. Databases maintained by the Montana Natural Heritage Program and Montana Department of Fish, Wildlife & Parks (MDFWP) were also queried to obtain natural resources information relevant to the project area.

Vegetation Resources

Reconnaissance level baseline vegetation studies were conducted in the area during the summer of 2011 (Elliot 2011). The following habitat based communities were identified.

Wetlands and Riparian Areas A large wetland complex, charged by both surface and groundwater flows, is present on the floodplain of Sheep Creek and Little Sheep Creek on the eastern side of the project area (Figure 9). Other linear wetlands, originating from springs, dissect upland habitats and occur along stream courses along valley bottoms that ultimately flow into Sheep and Little Sheep Creek (Figure 9). The sub-irrigated meadows are dominated by introduced and native grasses, sedges, and forbs including: meadow foxtail, beaked sedge, Nebraska sedge, yellow monkey flower, berula, marsh aster, Baltic rush, redtop, smallfruited bulrush, and tufted hairgrass. On dryer microsites in the meadows, agronomic species (e.g., Kentucky bluegrass, smooth brome, and timothy) are present.

Shrub Communities Shrub communities along Sheep Creek, originate from springs on upland sites, and consist mainly of Bebb’s willow and Booth’s willow, with understory species including: large-leaf avens, beaked sedge, Nebraska sedge, Baltic rush, willow-herb, shrubby cinquefoil, marsh butterweed, and tufted hairgrass. Scattered aspens often are present along the linear drainages dissecting upland sites. One tree-dominated wetland, charged by springs, is present in the southern part of Section 24 at the base of a forested slope. Engelmann spruce, horsetail, mannagrass, brook saxifrage, baneberry, and colt’s-foot dominate this wetland.

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Coniferous Forest Upland forest communities in the project area are dominated by an over-story of Douglas-fir with lesser amounts of lodgepole pine. In open Douglas-fir stands on dryer sites, Idaho fescue and big sagebrush are common understory plants. On moist, north-facing slopes understory species include common juniper, birch-leaf spirea, showy aster, -grape, twinberry, and bearberry.

Big Sagebrush\Grassland Non-forested uplands support big sagebrush/grassland communities with common species including; big sagebrush, Idaho fescue, rough fescue, Sandberg’s blue grass, western needlegrass, Junegrass, sticky geranium and silky lupine.

Species of Concern No plant Species of Concern (SOC) are listed in the vicinity of the project area however nine SOCs are known to exist in other areas of Meagher County (MNHP, 2011). These species were not identified in the project area during baseline studies and have a low to moderate likelihood of occurring in or near the project area (Table 11).

Table 11. Plant Species of Concern Known to Occur in Meagher County and Potentially Occurring in the Project Area

Likelihood of Common Scientific Habitat Occurrence Status Name Name Associations In or Near Project Area

Montana SOC: Vernally moist places in Adoxa Musk Root G5 S3 mountains below rock Low moschatellin USFS= Sen slides Open habitats in montane and subalpine meadows Long-styled Cirsium Montana SOC: and road sides between Moderate thistle longistylum G2G3 S2S3 4800 and 8100 feet elevation Phlox kelsyi Montana SOC: Open, exposed limestone- Missoula Phlox var. G2G3 S2S3 USFS derived slopes and Moderate missouliensis = Sen BLM = Sen exposed ridges

Open shale slopes and Divide Physaria Montana SOC: gravelly areas in Moderate bladderpod klausii G3 S3 bunchgrass communities

Montana SOC: Austin’s Polygonum Gravelly and shale- derived G5T4 S2S3 USFS Low knotweed austinii soils on slopes = Sen BLM =Sen

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Table 11. Plant Species of Concern Known to Occur in Meagher County and Potentially Occurring in the Project Area

Likelihood of Common Scientific Habitat Occurrence Status Name Name Associations In or Near Project Area Fens and swamps in valley Autumn Salix Montana SOC: and foothill zone, mainly Low Willow serissima G4 S3 along the Rocky Mountain Front Montana SOC: Wet, often alkaline soils Beaked Eleocharis G5 S3 associated with warm Low spikerush rostellata USFS = Sen springs and fens BLM = Sen Northern Montana SOC: Goodyera North-facing, mossy slopes Rattlesnake- G5 S2S3 Low repens in mountains plantain USFS = Sen

Montana SOC: Subalpine parklands and Hall’s rush Juncus hallii G4G5 S3 Low moist meadows USFS = Sen

2.8 Noxious Weeds Noxious weeds observed in the project area include Canada thistle, musk thistle, and hound’s tongue. Tintina shall make reasonable and conscientious efforts to identify, control and suppress the introduction of all weeds which its operations introduce, or are likely to have introduced. Noxious weeds would be controlled using appropriate mechanical, biological and chemical treatments which meet the requirements of Montana and Federal laws and a weed control plan would be developed between the landowners, County weed control officials, and Tintina.

2.9 Wildlife Reconnaissance level baseline wildlife studies were conducted in 2011 to characterize wildlife habitat and assess the potential for animals of conservation concern to be present within the proposed project area (Elliot 2011). Databases maintained by the Montana Natural Heritage Program and Montana Department of Fish, Wildlife & Parks (MDFWP) were also queried to obtain natural resources information relevant to the project area.

2.9.1 Wildlife Observed Wildlife species or their sign (tracks, scats, skeletal remains, nests, beds, or calls) observed during field studies include white-tailed , mule deer, , coyote, , Richardson’s ground squirrel, pocket gopher, red-tailed hawk, Swainson’s hawk, northern harrier, kestrel, Canada goose, Clark’s nutcracker, eastern kingbird, barn swallow, tree swallow, savannah sparrow, lark sparrow, gold finch, rock dove, northern flicker, yellow-rumped warbler, mourning dove, raven, American robin, ruffed grouse, magpie, and red-winged blackbird.

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2.9.2 Species of Concern Wildlife Species of Concern were not observed during the 2011 survey and are not recorded as present within the project area, but Species of Concern have been identified in Township 12 N Range 6 E of Meagher County (Table 12) (Montana Natural Heritage Program, 2011). The habitat types frequented by some of these Species of Concern are associated with habitats that are present within the project area (i.e., conifer forests, grasslands, streams/riparian areas) suggesting that Species of Concern could also be present within the Project’s area of influence. In the case of far-ranging wildlife, it is likely that the project area comprises only a relatively small proportion of the total range used by such wildlife during the year.

Table 12. Wildlife Species of Concern Known to Occur in Meagher County and Potentially Occurring in the Project Area

Likelihood of Common Scientific Habitat Status Occurrence Name Name Associations In or Near Project Area Birds Montana SOC; G4 Ammodramu s Baird's Sparrow S3B Grassland. Low bairdii BLM=Sen Montana SOC; G5 S3 Haliaeetus Nests near water, forages Bald Eagle USFWS DM Moderate leucocephalu s over a variety of habitats. USFS=Sen BLM=Sen Northern Accipiter gentilis Montana SOC; G5 Mixed conifer, predominantly Goshawk S3 mature, forests. High BLM=Sen Tall grass and mixed-grass Montana SOC; G5 Dolichonyx prairies. Prefers "old" hay Bobolink S3B Low oryzivorus fields with high grass-to- BLM=Sen legume ratios. Brewer's Spizella breweri Montana SOC; G5 Sagebrush/grasslan d Sparrow S3B communities High BLM=Sen Black Rosy Leucosticte Montana SOC: G4 Nests in rock crevices above Finch atrata S2 timberline Low Catharus Montana SOC; G5 Veery fuscescens S3B Riparian forests Low Montana SOC; G4 Native, medium to Anthus S3B intermediate height prairie Sprague's Pipit Low spragueii USFWS=C BLM=Sen Loggerhead Lanius Montana SOC; G4 Open shrub and grassland Shrike ludovicianus S3B habitats Moderate BLM=Sen

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Table 12. Wildlife Species of Concern Known to Occur in Meagher County and Potentially Occurring in the Project Area

Likelihood of Common Scientific Habitat Status Occurrence Name Name Associations In or Near Project Area Long-billed Numenius Montana SOC; G5 Curlew americanus S3B Native grasslands Low BLM=Sen Montana SOC: G4 Peregrine Falco S3 Cliffs and canyons, near water Moderate Falcon peregrinus USFWS=DM USFS=Sen Cassin's Finch Carpodacus Montana SOC; G5 cassinii S3 Conifer forest High Clark's Nucifraga Montana SOC; G5 High Conifer forest Nutcracker columbiana S3 (observed) Mixed-grass prairie, shrub- Montana SOC; G4 Ferruginous grasslands, grasslands, grass- Buteo regalis S3B Low Hawk sagebrush complex, and BLM=Sen sagebrush steppe Large uncut stands of old- Troglodytes Montana SOC: G5 growth timber, usually cedar- Pacific Wren Low pacificus S3 hemock andspruce-fir in riparian areas Montana SOC; G5 Grasslands and shrublands Aquila Golden Eagle S3 often associated with cliffs and High chrysaetos BLM=Sen rock outcrops Grasshoppe r Ammodramu s Montana SOC; G5 Sparrow savannarum S3B Native grasslands Low Great Blue Montana SOC; G5 Colonial nester in riparian Ardea herodias Low Heron S3 cottonwood forests Great Gray Owl Strix nebulosa Montana SOC; G5 S3 Conifer forest. Moderate BLM=Sen Montana SOC; G4 Obligately linked to sagebrush Greater Sage- Centrocercus S2 USFWS=C habitat for nesting and Low Grouse urophasianus USFS=Sen wintering BLM=Sen Lasiurus Montana SOC;:G5 Hoary Bat cinereus S3 Forested areas High Canada Lynx Montana SOC: G5 S3 Lynx USFWS=Threatened Mixed conifer forests. Low canadensis USFS=T BLM=Special Status

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Table 12. Wildlife Species of Concern Known to Occur in Meagher County and Potentially Occurring in the Project Area

Likelihood of Common Scientific Habitat Status Occurrence Name Name Associations In or Near Project Area Montaa SOC: G4G5 Variety of habitats including Fringed Myotis S3 grasslands and forests High myotis thysanodes BLM=Sen Montana SOC; G4 Alpine tundra, and boreal and S3 USFWS=C mountain forests (primarily Wolverine Gulo gulo Low USFS=Sen coniferous) in the western BLM=Sen mountains Montana SOC: G4 Habitats with a high density of S4 ungulates, favored prey. Gray Wolf Canis lupus USFS=Sen Moderate BLM=Sen Amphibians Western Toad Montana SOC: G4 Pond, slow moving strems, Bufo boreas S2 and wetlands High USFS = Sen Fish Yellowstone Montana SOC: G4 Cutthroat Trout Onchorynchu s T2 Clear, cold streams and lakes Low clarkii bouie USFS =Sen BLM = Sen Westslope Onchorynchu s Montana SOC: Clear, cold, nutrient-poor Cutthroat Trout clarkii lewisii G4T3 S2 ,USFS = streams Sen High BLM = Sen Northern Montana SOC: G5 Cool, clear, slowflowing Phoxinus eos Redbelly Dace S3 streams Low Northern Phoxinus eos x Montana SOC: G5 Quiet waters of beaver ponds, Redbelly Phoxinus S3 BLM = Sen Low Dace Hybrid neogaeus bogs, and clear streams

G- Global Ranking S- State Ranking 1 -Critically Imperiled 2 - Imperiled, rarity or factors make it vulnerable to extinction 3 – Rare, Uncommon or threatened but not immediately imperiled 4 – Not rate apparently secure 5 – Widespread, abundant SOC – Montana Species of Concern Sen – USFS and BLM Sensitive

2.9.3 Fisheries and Aquatic Life Sheep Creek and Little Sheep Creek are perennial streams that meander through a broad floodplain of sub-irrigated meadows and shrub-dominated wetlands. Sheep Creek has riffles and pools with cobble and gravel substrates. There is evidence of abandoned beaver dams,

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and oxbows are a prominent feature of the broad floodplain. It is likely that brook trout, rainbow trout, westslope cutthroat trout, and hybrids of rainbow and westslope cutthroat trout are present in waters of the project area. No critical habitat locations have been identified at this time.

Benthic invertebrate communities in the project area were not quantitatively analyzed.

2.10 Cultural Resources The Montana Department of Environmental Quality encouraged Tintina to conduct a cultural resource inventory prior to filing the Exploration License Amendment to construct the exploration decline. To meet this request, Tintina contracted Tetra Tech, Inc. to conduct an intensive pedestrian inventory of 970 acres of private land within the Project area. This area included the south half of Section 24 and all of Section 25 of T12N, R6E, and the southwest quarter of section 30 of T12N, R7E) (Figure 14). This area also covers the central portion of the lease block, most of the plan view of the Johnny Lee mineral deposit, the proposed decline portal, portal pad, temporary waste rock storage facilities and the temporary access road (Figures 2 and 15) (Tetra Tech 2012; attached as Appendix H of this report). This area also includes all of the proposed facilities identified during conceptual planning for the exploration decline.

The pedestrian inventory recorded seven prehistoric sites, three historic sites, and two prospect pits. Additionally, a previously recorded road was identified. All seven prehistoric sites are lithic scatters that if they are to be disturbed, require further work to determine their eligibility to the National Register. Tetra Tech recommends that these sites be tested to determine if they have the potential to contribute information important to our understanding of prehistory (Criterion D). These lithic scatter sites should be avoided until testing can determine their eligibility. The three new historic sites and the previously recorded historic road are recommended not eligible to the National Register of Historic Places and no further work is recommended prior to mine activities. The prospect pits were recorded as isolated finds. Evaluation of National Register eligibility was not conducted as isolated finds usually do not have the ability to contribute information important to prehistory or history.

One of the identified prehistoric sites occurs in an area proposed for surface disturbance associated with one of the exploration decline’s related facilities. Because this identified prehistoric site falls within an area of proposed future surface disturbance it would need to be more thoroughly re-evaluated to determine its potential eligibility for recommendation to the National Registry of Historic Places. This evaluation is scheduled for November of 2012.

A detailed report for the Cultural Resources at the site was prepared, and would be submitted to the State Historical Preservation Office (SHPO) for a ruling on their eligibility for the National Register, the report will not be released to the public.

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T12N R6E Montana

Decline Alignment

Cultural Resource Inventory Area ³ Miles

0 1 N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig14_CulturalResources.mxd N:\PROJECTS\Tintina

Figure 14 Cultural Resource Inventory Boundary Black Butte Copper Project Meagher County, Montana Upper Zone

Lower Zone

.!

Adit Alignment and Aquifer Testing Holes .! .!

Bulk Tonnage Mining Spur Drift .!

Water Supply Well PW-3 .! .! Decline Alignment Existing Access Road

Water Supply .! Pipeline .! Water Tank Portal .!

Underground LAD Proposed Access Road F System Alignment and Portal Pad

.! Water Tank .! Adit Alignment Holes Water Supply Pipeline Surface LAD Underground LAD System Areas Perforated Portion of Underground LAD System Decline Alignment Existing Access Road Proposed Access Road Alignment and Portal Pad J ³ Surface LAD Areas Upper Zone SCALE IN FEET Lower Zone 0 2,000 N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig15_LargeScaleSiteMap.mxd N:\PROJECTS\Tintina

Figure 15 Large Scale Site Plan Map Black Butte Copper Project Meagher County Black Butte Copper Project Amendment to Exploration License

2.11 Socio-economics Meagher County is sparsely populated by Montana and US standards with a 2010 population of 1,891 and a land area is 2,391.8 square miles (Table 13). The population density is 0.8 people per square mile, while the average for Montana in 2010 was 6.8 people per square mile. The population in Meagher County has decreased slightly since 2000, but it is higher than the 1990 population of 1,824. The US Census Bureau reports that migration out of the county is greater than migration into the county (loss is 2.1%), and the number of births has also decreased, which are the primary causes of the population decline. Meagher County has a significantly higher proportion of its population over the age of 65 (21.2%) compared to Montana (14.6%) and the US (12.9%) (Table 14). In addition the percentage of the population under the age of 5 is 5.6% in Meagher County, 6.4% in Montana and 6.9% in the US.

Table 13. Meagher County, MT, and US Current Population Trend

Year Meagher County Montana US 2010 1,891 989,415 308,745,538 2000 1,932 902,190 281,424,602 2000 to 2010 -2.1% 9.7% 9.7% Source: US Census 2011

Table 14. Age Groups in Meagher County, MT, and US Current Population

Meagher County Montana US Under 5 years old, percent, 2009 5.6% 6.4% 6.9% Under 18 years old, percent, 2009 20.1% 22.5% 24.3% 65 years old and over, percent, 2009 21.2% 14.6% 12.9% Source: US Census 2011

Meagher County is rural and the main industries of farming and ranching employ 173 people or 16.9% of the population (Table 15). Other major industries that employ people include: retail trade (9.5%); arts, entertainment and recreation (5%); accommodation and food services (6.7%); other services (6.7%); and government (14.1%). Growth industries for jobs include: retail trade (+34% since 2001); real estate (+142.3%); education (+12%); arts, entertainment and recreation (+4.8%); and other services (+5.9%). Industries showing a loss of jobs include: farming/ranching (-23.8% since 2001); accommodation and food services (-7.5%); and government (-16.1%).

The unemployment rate is an indication of the potential number of available employees for Tintina’s project. Considering nationwide economic conditions, both Meagher County and Montana reported lower than average unemployment rates for August 2011, with 65 people or 7.8% and 36,014 people and 7.1%, respectively (Table 16).

Meagher County and Montana “per capita” incomes are $18,866 and $22,881 respectively (Table 17). The median household income for Meagher County and the State of Montana are $32,409 and $42,222 respectively. The percentages of populations in Meagher County and the State of Montana considered below the poverty level as defined by the US Census are 19% and 15% respectively.

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Table 15. Employment by Industry, 2001-2009 2001 2009 Change 2001-2009

Farm 227 173 -54 Retail trade 76 102 26 Real estate and rental and leasing 8 19 11 Administrative and waste services 24 na na Educational services 5 6 1 Arts, entertainment, and recreation 52 54 2 Accommodation and food services 109 101 -8 Other services, except public 68 72 4 administration Government 180 151 -29 Total Employment (%) Farm 19.5% 16.1% -23.8% Retail trade 6.5% 9.5% 34.2% Real estate and rental and leasing 0.7% 1.7% 142.3% Management of companies and 0.0% 0.0% na enterprises Administrative and waste services 2.1% na na Educational services 0.4% 0.5% 12.0% Arts, entertainment, and recreation 4.4% 5.0% 4.8% Accommodation and food services 9.4% 9.4% -7.5% Other services, except public 5.8% 6.7% 5.9% administration Government 15.5% 14.1% -16.1% Source: US Census. 2011b.

Table 16. August 2011 Labor Force Non-Seasonally Adjusted Preliminary Unemployment Area Labor Force Employed Unemployed Rate Meagher County 829 764 65 7.8 Montana 509,558 473,544 36,014 7.1 Source: MDLI 2011

Table 17. Per Capita and Household Income Meagher Montana US County 5-year (2005-2009) average per capita $18,866 $22,881 $27,041 income in past 12 months (2009 dollars) Median household income, 2009 $32,509 $42,222 $50,221 Persons below poverty level, percent, 2009 19.0% 15.0% 14.3% Source: US Census 2011

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2.11.1 Potential Positive Effects of the Project on Local Communities Potential positive effects of the proposed Project development include: . reduction of unemployment in the region, . job opportunities for younger people and encouragement to retain younger people in the county, . increased tax base for local, state and federal government . economic stimulus for existing local businesses, . long-term, meaningful employment for residents in mining operations and related positions (e.g. environmental monitors, service industry sector) . economic development and contract opportunities for existing and new businesses, and . community infrastructure improvements

2.12 Land Use Land uses in the Mine Project area are predominantly agricultural, with hay and livestock production the primary activities. In addition, outfitters use the Sheep Creek drainage for big game hunting and fishing.

The decline site and related facilities fall entirely within two tracts of private property owned by the Bar Z Ranch, three members of the Hanson family, and/or Rose Holmstrom who together control 100% of the surface and mineral rights. Tintina has lease agreements with each of these owners (Figure 3) (RMI, 2010). The leases stipulate that only underground mining would be practiced. Post mining land uses are expected to revert to farming, ranching, outfitting/guide services and recreational access.

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3.0 EXPLORATION DECLINE OPERATING PLAN

3.1 Introduction This document is a proposed Amendment to Tintina’s State of Montana Mineral Exploration License 00710 issued by the Montana Department of Environmental Quality for mineral exploration in the State of Montana. The Black Butte Project is presently Tintina’s only exploration project in Montana and is currently approved for surface disturbances related to exploration and hydrologic test drilling. As part of project development, Tintina has determined that underground exploration drilling is necessary to advance the project to the next stage of resource development. In order to accomplish this drilling, Tintina is proposing to construct an exploration decline to access proposed underground drill stations. In addition, a bulk sample for metallurgic testing may be collected from the mineralized zone encountered in the decline. Other technical investigations or studies such as groundwater hydrology, rock geochemical characterization, geotechnical and water quality studies would also be conducted from the exploration decline in support of future long term mine planning.

For this phase of underground exploration, Tintina proposes that a an 18 foot wide by 15 foot high , 5,200 foot (1,585 m) long exploration decline would be driven to a location near the bottom of the Upper Johnny Lee mineralized deposit zone (Figures 2, 4, 5 and 6). Underground drill stations would be cut and infill development drilling would be executed from these decline stations. Assuming the amendment to the exploration license is approved, the schedule for project construction is dependent on several other factors, including drill and mining crew availability. It is envisioned that construction might start as early as the second quarter of 2013. Development of the decline would commence immediately after site preparation and surface facilities construction activities are completed. It is anticipated that site preparation, and driving the drift and definition drilling would take between 8 to 16 months to complete. A number of surface facilities would be required to support the exploration decline exploration phase of the project; these facilities are introduced in the surface disturbance section immediately below (Section 3.2) and are described in greater detail in the sections that follow.

In addition to underground exploration drilling and bulk ore sampling, Tintina expects that previously and newly approved surface exploration drilling and hydrologic drill testing would continue during the proposed underground drilling phase of their Project’s exploration program.

3.2 Support Facilities and Surface Disturbance Areas Figures 15 and 17 present all required surface disturbances associated with the proposed exploration decline. Figure 16 is a map showing disturbance boundaries. Mining of the decline (portal and underground workings) would require a new road to access the site and construction of a number of facilities in support of the decline operation, all of which would be located on privately owned lands under lease to Tintina. Most of the support facilities would be located in the southeast quarter of section 25 of T. 12 N., R. 6 E. or the southwest quarter of section 30 of T. 12 N., R. 7 E. (Figure 2). The total amount of newly proposed surface disturbances is 24.66 acres.

Figures 15, 17 and 18 also show the specific surface disturbance areas associated with support facilities and Table 18 provides a list of proposed surface disturbance acreage by facility. These support facilities include: access roads (for portal, waste rock and LAD areas); the decline portal pad containing various support facilities (office, dry/change house, warehouse, shop/maintenance facility, construction laydown area, employee parking, fuel and lubricant

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storage, power supply and transformers, on site back-up power generation (in the shop/warehouse building, Figure 18), off-pad support facilities (water supply well, water storage tank, septic/drain-field system and soil/sub-soil stockpiles, storm water control structures and ponds) and off-pad mining related facilities (surface explosive magazine, waste rock storage pads, lined waste rock seepage collection ponds, and surface and subsurface LAD areas).

Table 18. Acres of Surface Disturbance by Facility Surface Facility or Activity Disturbance Acres New Access Roads Butte Creek Road to portal pad (2,880 ft) 6.04 To waste rock storage pads 0.15 2-track road to seepage ponds 0.35 (1,540 x 10 feet) Portal Patio, Including Support Facilities and 7.33 Powder Magazine Waste Rock Storage NAG Waste Rock Pad 1.84 PAG Waste Rock Pad 0.8 Seepage Collection Basins NAG Waste Rock Seepage Pond 2.05 PAG Waste Rock Seepage Pond 1.08 LAD areas Surface LAD 0 Sub-surface LAD (6,840 x 26 feet) 4.08

Soil Stockpiles 0.9 Septic, water well, water tank 0.04 Water supply well pipeline (2100 x 26 feet) 1.25

Disturbance Acres Total 25.91

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Upper Zone

Lower Zone

.!

Adit Alignment and Aquifer Testing Holes .! .!

Bulk Tonnage Mining Spur Drift .!

Water Supply Well PW-3 .! .! Decline Alignment Existing Access Road

Water Supply .! Pipeline .! Water Tank Portal .!

Underground LAD Proposed Access Road F System Alignment and Portal Pad Total Actual Approximate Surface Disturbance Surface Disturbance within this Area .! Water Tank is 25.91 acres .! Adit Alignment Holes Surface LAD Water Supply Pipeline Areas Underground LAD System Perforated Portion of Underground LAD System Decline Alignment Existing Access Road J Proposed Access Road Alignment and Portal Pad ³ Surface LAD Areas SCALE IN FEET Upper Zone Lower Zone 0 2,000 N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig16_SurfaceDisturbanceMap.mxd N:\PROJECTS\Tintina

Figure 16 Area Encompassing All Surface Disturbance Black Butte Copper Project Meagher County

N:\PROJECTS\Tintina Gold Resources\BlackButte_Fall2012\ArcMap\Fig18_PortalPadFacilities.mxd

ADIT

OFFICE DRY

PARKING 80' SHOP LAYDOWN WPDSL EQUIP AREA PRKG

50' CONEX

³ 0 50 100 150 200 Feet

Figure 18 Portal Pad Support Facilities Black Butte Copper Project Meagher County, Montana Black Butte Copper Project Amendment to Exploration License

During underground evaluation, structures, equipment, and other facilities would be maintained in a safe, neat and workman-like manner. All planned development at the project site will be designed to meet operational needs and comply with all Mine Safety and Health Administration (MSHA) standards and regulations. Hazardous sites or dangerous conditions resulting from operations shall be marked by signs, fenced or otherwise identified to protect the public or private land owners.

As-built drawings of the mine facilities and workings would be provided to the DEQ in electronic format when they become available as part of an annual report for the project. A copy of the as- built drawings would be maintained in an up-to-date condition and be available at the project site.

3.3 Pre-Construction Site Preparation Common to All Disturbed Areas Facility construction sites were selected to avoid and minimize impacts to forested areas and to avoid wetland and riparian areas. Clearing and grubbing of shrubs and other vegetation would be completed prior to construction activities in all proposed disturbance areas. Harvested shrubs would be used to provide coarse woody debris to cover early construction reclamation sites, stored in slash piles and burned, or alternatively used for sediment erosion control.

Topsoil / growth medium and sub-soil would be removed from proposed disturbance areas prior to construction. Growth media and sub-soil would be stored in separate stock piles. The amount of sub-soil removed would be limited to that required by excavations for the specific facility. Growth media and sub-soil stockpiles would be stored within disturbance areas where possible except along newly constructed roadways. The stockpiles would be re-vegetated using an approved seed mixture to reduce soil loss and minimize erosion from water and wind, and minimize weed invasion. Stockpile locations are shown on Figure 17. Removal and stockpiling of topsoil and sub-soil from the portal patio, waste rock and pond areas, and new access road sites would require use of a dozer, tracked-excavator, loader and dump trucks.

3.4 Decline and Support Facilities The following sub-sections describe the proposed exploration decline for the Project, and depict the location of, and describe activities associated with its required support facilities.

3.4.1 Exploration Decline The proposed exploration decline would be located about 8,500 feet east-southeast of Black Butte and about 3,000 feet southwest of Strawberry Butte (Figure 2) in the SE/4 of Section 25, T. 12 N., R. 6 E., and the SW/4 of Section 30, T. 12 N., R. 7 E. The proposed 5,200-foot long exploration decline would be collared at an elevation of about 5,880 feet. The decline would be driven as an 18 foot wide by 15 foot high heading that is divided into two segments. The first 3,200 foot (975 meter) long segment would trend north-northwest and decrease in elevation at a grade of about 15% for a 480 foot elevation change. The second segment trends more northwest, at a constant elevation for about 1,800 feet. The location of the collar and the subsurface projection of the proposed exploration decline are shown on Figure 2, and the decline projection is shown on a geologic cross-section in Figure 6.

Two other decline portal locations were evaluated prior to selecting the current site. One was located in the NE/4, NE/4 of section 24 and the other was in the center of the N/2 of Section 25. Although these proposed declines were shorter in length, they intercepted higher amounts of sulfide-bearing rock and caused support facilities to be spread out over a greater geographic

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area. The current site was selected because it would allow for consolidation of facilities into a smaller area, a lower amount of sulfide-bearing waste would need to be mined, and it would be located below the two Johnny Lee deposit zones, a more desirable position from which to conduct infill drilling.

3.4.1.1 Exploration Decline Objectives The exploration decline would provide access for the underground exploration phase of the Project. The main objective of exploration decline construction is to provide access for an underground drilling program and to acquire a bulk sample for metallurgical testing as summarized in the remainder of this section.

The decline would be driven to a location near the bottom of the mineralized upper Johnny Lee deposit zone (USZ on Figure 7). Figures 5 and 6 show the ore zones to be tested in the underground phase of exploration drilling. Two or three core drills may be used simultaneously for underground drilling depending on availability and the speed of which drilling results are needed.

Sumps would be constructed at each drill station to contain any fine-grained cuttings. These sediments would be mucked from the sumps periodically and temporarily stockpiled underground in muck bays to dewater prior to their placement in the PAG surface waste rock storage facilities. Drilling water would be segregated from mine water and treated with flocculants to precipitate suspended drilling mud into underground sumps as necessary prior to discharge to surface or underground LAD areas. Drilling mud would contain no nitrate or ammonia compounds. Water quality would be analyzed and reported to DEQ, and then evaluated for suitability for disposal by LAD prior to discharging.

A bulk sample of as much as 10,000 tons of ore would be collected from the upper and lower Johnny Lee zones for metallurgical testing. Ore would be shipped off-site for testing. Ore would be stored on the lined, potentially acid-generating waste rock storage pad prior to shipping.

Technical Data Collection: In addition to underground drilling to evaluate the mineralized zones for metal content and continuity, the underground drilling program would also collect data relevant to a number of other technical aspects of the project. Rock mechanic/geotechnical data (rock quality data) would be collected during the construction of the exploration decline and from core from the subsequent development drilling phase. These data would be used to aid development of the future long-term mining method and to define criteria to assist with final mine design. Hydrologic, geochemical, and water quality data would also be collected to provide an estimate of mine inflow and quality during work in the exploration decline and future long term mining operations. The suitability and effectiveness of waste rock management plans, different water discharge distribution systems such as surface or subsurface LAD or infiltration ponds, and water treatment technologies would be evaluated during the evaluation phase.

3.4.1.2 Underground Development Methods Development drifting for construction of the exploration decline would use a mining subcontractor and is expected to take about 8 to 16 months to complete. Decline construction would use conventional mining methods including drilling, blasting, rock bolting, mucking (using a loader) and underground truck haulage of mine waste to the waste rock storage areas located at the surface. Diesel powered equipment would use low emission engines complying with MSHA underground air quality regulations. The decline would be rock bolted to provide basic

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ground support and shotcrete and screen mesh would be used as necessary to assist with support in areas with more intense fracturing or poor ground conditions.

The following are some criteria or methods that might be considered or used during decline excavation:

Groundwater Inflow: A pilot hole of variable length would be drilled ahead of the advancing face such that the ground has been tested for likely water inflow rates and water-bearing geologic structures ahead of each new blasting round.

Grouting and Groundwater Inflow Control: The grouting of water-bearing faults and/or fractures is planned as a primary means of minimizing and controlling the amount of water flowing into the mine workings from that predicted by pre-mining aquifer testing. If pilot hole drilling indicates the potential for significant inflows of water from water-bearing faults and/or fractures, pressure grouting techniques would be used to control the flow of water while advancing the face. If large amounts of water were encountered in the pilot hole, a packer would be installed to seal the hole followed by directional grouting prior to advancing the decline.

Records of grouting activities would be kept to document the future value and effectiveness of grouting mine inflow during mine operations. This information, along with the hydrologic information collected (mine discharge inflow, mapping of faults and fractures, etc.) during decline development would assist in understanding the hydrologic system and its response to grouting.

The exploration decline would pass approximately 90 feet below the Coon Creek tributary of Sheep Creek about 2,400 feet in from the portal (Figure 7). Shallow bedrock at test well PW-3, which is located along the decline trend adjacent to Coon Creek, encountered minimal groundwater in the upper 75 feet of the borehole suggesting that dewatering of the deeper decline would have minimal impact on Coon Creek flow, and that there would be a very low risks of dewatering its associated wetlands. Fractures at the decline level in this area would be grouted to further minimize the potential for inflow into the underground workings and further reduce or eliminate the potential for impacts surface water flow in Coon Creek. If necessary, it would be possible, should larger flows be encountered in more highly fracture bedrock zones, that aquifer test wells PW-3 and PW-4 could be used to dewater the rock mass in the vicinity of the decline.

Water Inflow and Blasting Agents: If substantial groundwater inflow to the workings is not encountered, Ammonium Nitrate/Fuel Oil (ANFO) would be the primary blasting agent. To minimize the effects of nitrate explosive residues on water quality, a concerted effort would be made to limit the use of blasting agents to that necessary for rock breakage and to minimize spillage. If wet conditions are encountered, an emulsion-based powder of other less water soluble explosives would be used. Emulsion-based powder can be obtained in both stick form and in forms that can be pumped, which many mines use to control the release of nitrogen by- products produced by explosive residues. Tintina will monitor the water quality for nitrogen compounds, and if it is determined that there is a problem with high nitrogen values, then an emulsion based product would be used.

Powder Magazines: A temporary powder magazine would initially be located on the surface (Figure 17) and once a safe working distance from the portal has been established as the decline advances, it would be relocated underground as appropriate sites are developed. Explosive storage will comply with all MSHA rules and regulations. Explosives may be

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delivered directly to the underground powder magazines. The location of the underground powder magazines would change as the decline progresses towards the ore body. Once the underground magazines are in service, totes would be filled with emulsion on surface and delivered to a storage area underground using a forklift. Tintina would educate and train employees on nitrate issues, proper housekeeping and spill cleanup to manage explosives and minimize the potential release of nitrates to waste rock and mine water.

3.4.1.3 Underground Mining Equipment Table 19 lists the equipment anticipated for use and the utilities required in constructing the exploration decline and executing the underground drilling and bulk sampling programs.

Table 19. List of Underground Equipment and Utilities for Decline Construction Equipment Surface Loader Personnel Tractor Surface Haul Truck Powder Truck Pickups (2)/Crew Vans UG Fuel/Lube Truck UG Loader (2) Shotcrete Boom Truck UG Haul Trucks (2) Fork Lift Roof Bolter Utilities Jackleg Drills Air Jumbo Drill Water Core Drill Rig (2) Electricity Welder- portable Vent Fans (4 – 8) Generator - portable Electrical pumps (3)

3.5 Support Facilities The disturbance area boundary line on Figure 16 circumscribes all surface disturbances associated with the proposed exploration decline and its required support facilities. The principal areas of support facilities required for the exploration decline include the portal pad, waste rock storage and seepage collection, LAD areas, domestic water supply/septic systems, temporary surface powder magazine, core storage facility, and access roads. Acres of surface disturbance associated with these facilities are listed in Table 18. These support facilities are described by area below.

3.5.1 Portal Pad and On-Pad Underground Mining Support Facilities A portal pad would be constructed to provide a platform from which to develop the decline, and upon which to construct ancillary facilities in support of the decline construction. The top of the pad would be about 230 feet wide by 800 feet long, with a gently dipping upper surface that slopes to the south for drainage, to a safety berm at the perimeter of the pad (Figures 17 and 18). The sides of the pad would be angle of repose fill slopes. The total disturbed footprint of the pad would be 17.33 acres. Construction of the pad would require about 70,000 cubic yards of fill. Initial fill for the pad would be obtained by excavation of 31,000 cubic yards from the hillside in which the pad would be constructed, and additional material would be obtained from an off-site gravel quarry. At the present time, Tintina is evaluating local sources for these materials.

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Ongoing waste rock characterization would be continued to further support initial static test results and guide selective handling of rock to separate potentially acid generating rock (PAG) from non-acid generating (NAG). Details are provided in Section 4.1.3 of this document.

Ancillary support facilities to be constructed on the portal pad (Figure 18) would consist of: an office; dry/change house; power supply, garage/shop/wash-pad (fuel storage) building; warehouse building; cement silo/sand storage; laydown/equipment parking; and employee parking. The lay-out envisioned for these facilities on the portal pad is also depicted on Figure 18. Each of these facilities is described below. Note that the dimensions and precise locations of these facilities may be somewhat modified during actual construction.

Office: A 24 x 66 foot modular office trailer such as that typically used on construction sites for use by engineering, safety and other mine support personnel would be placed on concrete piers and tied down as per building code requirements.

Dry/Change House: A 24 x 66 foot modular office trailer as typically used on construction sites for employees to use to change and shower, would be placed on concrete piers and tied down as per building codes requirements. This building would serve as a gathering point for workers waiting to go underground.

Shop/Warehouse and Power Supply Building: A 50 x 80 foot fabric covered, insulated, steel truss arch building would be constructed on a concrete slab to house a mine shop, warehouse, and on-site power supply generators. This facility would primarily serve as a garage/shop maintenance and equipment repair area, containing equipment and bays to maintain the mobile equipment fleet. The concrete floor in the shop area would provide containment for fuel, lubricants and other shop fluids. The building would also provide warehouse space to store supplies, parts, small quantities of lubricants and other items to support the exploration decline project.

Power Supply: Two on-site generators are planned for the project and would be housed in or adjacent to the Shop/Warehouse building. One generator, a 545 kW unit would be the primary source of power. This generator would be housed in a van-trailer with a “day-use” diesel fuel tank of approximately 500 gallons. A 320 kW backup generator would provide emergency backup power for the underground pumps, vent fans and shop in the event the main generator power supply is disrupted. The 320 kW generator would be skid mounted and has a “day” fuel tank with approximately 250 gallons of fuel on board. Containment would be provided for 500 and 250 gallon day-use fuel tanks on the generators. Fuel would be transferred from the fuel storage area to the generator’s day-use tanks as needed. Most of the underground equipment would be electric or diesel powered. Electricity for the ventilation fans and pumps would be supplied by on-site generators.

Power would be distributed throughout the property and distribution lines would be buried between the generators housed in or adjacent to this building and the portal and other facilities. Line power is available near the site; however, this line does not have sufficient power to support all of the anticipated underground decline construction and exploration activities.

Fuel/Oil Storage/ and Wash/Lube Pad Building: A 50 x 80 foot fabric covered, insulated, steel truss arch building would be constructed on a concrete slab with built in containment for fuel storage, lubricants and shop fluids (WPDSL on Figure 18). This facility would serve as a fuel and oil storage facility, contain a fueling station and lubrication bays, and would also house a wash pad for equipment. The entire concrete pad for the building would slope to a perimeter

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foundation curb on the outside and toward one end of the pad. The wash pad would slope into a sediment sump that can be cleaned with a piece of mobile equipment. The sediment sump overflows into a hydrocarbon skimming and sediment settling sump. The underflow from this sump would report to a “grey” water sump that would be pumped into a wash pad water recycle system for further cleaning prior to reuse. Wash pad sediments and oil-skimming residues would be collected and hauled off-site by a licensed hazardous waste disposal company. The fuel/lube storage area would report to a hydrocarbon containment sump which would be sized for 110% containment of the largest tank capacities located in the facility.

Fuels Storage and Fueling Stations: The project would use both diesel and bio-diesel products as well as a smaller volume of gasoline. Two large diesel storage tanks are planned for the project along with several day tanks and include: . 1- 8,000 gallon double walled tank (diesel) . 1- 6,000 gallon double walled tank (bio-diesel) . 1-500 gallon double walled tank (gasoline) . 1-500 gallon day tank (diesel generator) . 1-250 gallon day tank (diesel generator)

A fuel and lubricant truck would be used to dispense fuel to mobile equipment and a fueling station would be constructed at the fuel storage tanks and in the generator fueling area as well. The fuel station would be located on the concrete pad with spill containment to capture potential spills from fueling operations.

Various oils and anti-freeze necessary for mine operations would also be stored on the same concrete pad as the fuel tanks. A semi-van trailer or conex unit would store lubricants, oils, antifreeze, and other similar material and would be placed near the fuel tanks to complete the fuel/lube station. It is estimated that there would be approximately 2,000 gallons of various oils, including storage for used oil. No fuel is expected to be stored in the underground workings during exploration activities.

Used oil would either be used on site as a fuel source for a shop heater or would be collected and hauled off-site by a licensed hazardous waste disposal company.

Laydown/Equipment Parking: An open 50 x 80-foot storage laydown area would be reserved for various parts and materials required in the mining process. The area would be large enough to be used as equipment parking area. Smaller parts and equipment would likely be stored in temporary material storage units (conex boxes) in the laydown area.

Employee Parking: A graded and graveled parking area located near the office and wash/dry building would be reserved for employee parking.

3.5.2 Off-Pad Underground Mining Support Facilities Other off-pad support facilities would include: temporary surface powder magazine; domestic water supply; and the septic and drain field (Figures 15 and 17). Each of these facilities is described below. LAD areas, waste rock storage pads and seepage collection ponds are described in separate sections below.

Temporary Surface Explosive Storage: The surface powder magazine locations have been carefully determined (Figure 17) and would be constructed with large berms on three sides in accordance with applicable regulations. It is expected that emulsion would be the primary

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explosive used for underground development. Depending on the rock encountered, stick powder, slurries or other similar water resistant explosives products may be used with or instead of emulsion. Emulsion would be stored in 3,000 pound totes at an appropriate distance from the magazines. Explosives would be stored on the surface at the project in two separate explosives magazines. One magazine would be for initiation devices and one would be for high explosives.

Domestic Water Supply and Storage: The domestic water supply for the exploration decline would use well PW-3 (an aquifer test pumping and supply well (Figure 15) and an above ground water tank shown on Figures 15 and 17). A 2100 foot long buried pipeline following a short segment of the Butte Creek access road would be constructed from well PW-3 water supply well to the 10,000 gallon storage tank that in turn supplies water to the offices, dry and shop (Figures 15 and 17). This tank could also provide make-up water as needed. Tintina’s use of surface and groundwater for these purposes was agreed upon under the mining lease agreement with the property / water rights owner. This well would be subject to permitting as a non-community public water supply well. The PW-3 well’s underground completion complies with that required for a public water supply well. Necessary permits would be obtained from DEQ Public Water Supply and the system would be completed in accordance with requirements Circular DEQ-1.

Septic and Drain Field: During initial mobilization /construction phases portable toilets would be provided and maintained by a local subcontractor. Ultimately, an on-site wastewater (septic/ drain field) system would be constructed to manage office trailer and mine dry/change house wastewater, which would be designed to accommodate for a full on-site staff size. The location (Figure 17) may change slightly based on field leach tests and the final design approved by the county. The system would need to be approved by the Meagher County sanitarian.

Core Shed: A steel sided and roofed pole barn with concrete floor has been installed for use as a core storage shed (Figure 2) under the existing exploration license. An expansion of this facility has been approved and construction is currently underway.

3.5.3 Waste Rock Storage and Seepage Collection Support Facilities Temporary waste rock storage facilities would need to be constructed for placement of initial mine development rock generated during construction of the exploration decline. Two waste rock storage facilities are proposed, one for potentially acid generating waste (PAG) and another for non-acid generating waste (NAG) waste. The combined facilities are designed to hold approximately 163,000 tonnes (115,400 cubic yards) of wastes (Figure 19).

The PAG waste rock storage facility would be constructed on a composite compacted subgrade/geotextile bottom liner, with an internal waste rock seepage collection system from which seepage would be gravity fed to lined seepage collection/evaporation ponds (Figures 17 and 19). Evaporation rates at the project site (34 inches per year) are approximately twice the precipitation rate (17 inches per year). The NAG waste rock storage facility would use a compacted subgrade base with an internal seepage collection system and no geotextile liner. Seepage water from both facilities would either be treated prior to discharge (see section 3.6.5), or directly discharged into a surface or underground LAD system depending on the water quality and the season of the year. Diversion structures would channel surface water run-on away from the waste rock facilities and into a dispersion structure. A storm water permit will be required for these diversions.

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3.5.3.1 General Waste Rock Pad Site Characteristic The proposed waste rock storage facility area consists of a gently rolling, hilly topography with slopes generally around 5-10% and reflects the fact that the shales in the Newland Formation are not particularly resistant to weathering. The National Resources Conservation Service (NRCS) reports the depth of weathering to be less than 60 inches with depth to the water table greater than 80 inches. The shale weathers to a clay-loam soil. More detailed geotechnical site investigations would be conducted to determine the actual subsurface conditions below these proposed waste storage areas.

Prior to construction, field sampling and laboratory testing would be completed to determine how suitable the shale is for embankment construction. The depth of weathering would be determined using the standard penetration test (ASTM D1586), where a 50 mm outside diameter, 35 mm inside diameter tube is driven into the soil by dropping a 140 pound hammer a distance of 30 inches. The blow count for a foot of penetration is recorded as the “N-value” which can be used to determine the competency of the formation. Bulk sample testing would be completed to ascertain the plasticity of the weathered shale along with slake durability rating of the intact shale. The shear strength of the intact native materials would also be obtained.

3.5.3.2 Subgrade Preparation The topsoil layer would be removed and stored in stockpiles for reclamation and closure activities. Weathered shale, if suitable for embankment construction would be excavated, moisture content would be adjusted to optimize compaction, and it would be placed as compacted engineered fill along the base and around the perimeter of the piles. Figure 19 is a Grading Plan for the waste rock storage facilities.

3.5.3.3 Embankment Construction Shales have been successfully used for construction of numerous embankments across the country. The relatively low height requirements for the embankments at the Black Butte site should not pose any significant challenges to using shale for this construction. The waste rock itself would also be tested to determine the susceptibility to breaking down during placement and weathering when exposed to the elements in order to determine the optimum stacking slope. For purposes of this waste rock facility design, the mechanical properties for the waste rock have been estimated using several approaches to determine a base case for the waste rock disposal area footprints. A simple slope stability analysis was run using SlopeW, a limit equilibrium modeling software package from Geo-Studios. The various estimated material properties were placed in the model to obtain the factor of safety (F.o.S.) for both a 2:1 (horizontal: vertical) slope and a more conservative 2.5:1 slope. The material properties and the stability analysis results are presented in Table 20. Industry standards vary somewhat depending on location, however the generally accepted guidance for design of rock dumps requires a minimum factor of safety of 1.3 under static loading for short-term storage cases (i.e., typically within the mine life) and 1.5 for long-term cases (i.e., long-term abandonment).

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Table 20. Waste Rock Material Properties and Stability Analysis

Friction F.o.S. at 2:1 F.o.S. at 2.5:1 Method Description Cohesion Angle Slopes Slopes RocLab1 Fractured Shale 13.0 66.6 psi 2.15 2.22

1 Weathered RocLab 9.8 47.0 psi 1.83 1.93 Shale Extremely RocLab1 Weathered 5.5 21.6 psi 0.98 1.08 Shale Douglass and 2 Rock Spoils 29.0 5.5 psi 1.12 1.31 Baily Douglass and 2 Soil and Rock 20.0 9.0 psi 0.99 1.12 Baily Leps3 Weak Rock 38.6 0.0 psi 1.27 1.45

Leps3 Medium Rock 41.6 0.0 psi 1.62 1.78

1) RocLab software from www.rocscience.com 2) Douglass P. M., Bailey, M.J., “Evaluation of Surface Coal Mine Spoil Pile Failures”, Third International Conference On Stability In Surface Mining Volume 3, AIME, 1983 3) Leps, T.M., “Reviewing Shearing Strength of Rockfill”, Journal of the Soil Mechanics and Foundation Division Proceedings of the American Society of Civil Engineers, 1970

In the absence of actual properties of the waste rock and subgrade, a conservative slope of 2.5: 1 was used to prepare the design of the waste rock disposal area (Figure 19). For the purpose of determining the actual dimensions for the waste rock disposal areas, haul roads for waste placement were kept to 10% maximum grade, and a minimum width at the top of the pile of 50 feet to allow truck to turn around (i.e., CAT 25 ton articulated truck) was used.

3.5.3.4 Waste Rock Storage Pad Liner Systems Some but not all, of the waste rock from the exploration decline development would have acid generating potential, as discussed in Section 2.6. For this reason the waste rock excavated from this exploration decline would be stored in two separate facilities in order to collect and monitor the seepage resulting from precipitation falling upon the composite compacted soil/geotextile liner of the PAG cell, and compacted subgrade NAG waste placement areas. Operational testing and selective handling procedures to manage the correct placement of NAG and PAG are discussed in Section 4.1.3. Collection of samples and analysis of this seepage would provide a field-scale pilot test for acid generation and metal mobility from the material on the two separate pads. Rain water and resulting seepage would be collected on an under-drain system within the liner package and gravity fed to a seepage collection/evaporation pond (Figure 19). The under-drain system would also prevent water from ponding at the base of the waste rock pile which could destabilize the pile depending on the depth and duration of inundation. As a part of the under-drain collection system the rock cushion/drainage layer above the liner would be designed to be free draining to facilitate capturing rain water and waste rock seepage within the liner (Figure 20).

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Due to the lack of readily-available and suitable onsite low permeability soils for a compacted clay liner, the following PAG cell liner system would be constructed in layers as described immediately below (from bottom to top):

. Compacted subgrade . A 60- mil HDPE geosynthetic liner material . A seepage collection piping system . A 2.5-foot thick cushion material (minus 1.5 inch free draining crushed rock) layer . A minimum of 1.5 foot of Run of Mine (ROM) waste rock placed in haul areas only.

A schematic of the proposed liner system is provided in Figure 20. The 60 mil geosynthetic HDPE liner would be placed on the compacted subgrade and embankments. A network of perforated seepage collection piping would be placed on the liner. This piping would transition to a solid pipe to transport the seepage from the pad to the lined seepage collection/evaporation ponds. To prevent damage to the liner system, a total of 4 feet of material (2.5 feet cushion/drainage material, plus 1.5 feet ROM waste in areas where haul trucks <40 tons operate) would be placed over the HDPE and around the perforated piping. The graded cushion material would also serve as a drainage layer and would either be produced by crushing mined development rock or by importing gravel materials from local but off-site pits.

The NAG cell would be constructed with a compacted subgrade liner that slopes to the south, overlain by an 1.5 foot layer of drain rock and a felt filter fabric that would allow down-gradient dewatering of the NAG seepage into 40-mil HDPE lined lateral collection/run-off drainage ditches with piping around the perimeter of the pad to collect and discharge seepage to the NAG seepage collection/evaporation pond (Figure 19). Additional waste rock geochemistry will be conducted on the lower Newland NAG component of waste rock (Ynl on Figure 7) to statistically determine the volume of stringers of massive sulfide mineralization interbedded in the unit, and its potential effects on overall acid-generation. It is possible, but yet uncertain, that the overall neutralizing potential of the unit would more than offset the minor amounts of sulfide mineralization present. In addition, humidity cell testing of composite samples would be initiated during construction to look more closely at the acid generation potential and metal mobility of the NAG and PAG fractions of the lower Newland waste rock. The lower Newland unit comprises 40% of the total rock to be mined from the exploration decline, and about 55% of the total NAG volume. If there are problems with the resulting water quality of the NAG seepage with respect to either acidity or metal mobility indicated by monitoring or in kinetic or metal mobility tests from the near term exploration monitoring, Tintina commits to construct a liner system for the NAG pile that is of the same design as that proposed for the PAG mine wastes (Figure 20).

3.5.3.5 Waste Rock Storage Pad Capacity The rock volumes used to determine the required capacity of the waste rock pads were based on the available geologic exploration drilling and waste rock characterization data. This data includes the lithologic correlation information from the decline alignment holes (Figure 6) as depicted on the exploration decline cross-section. Volumes were calculated by lithology and acid-generation potential, using decline dimensions for each of the units to be mined. In place rock volumes were corrected to tonnages using specific gravity data for the various lithologic/alteration units. An additional 15% was added to the tonnage of each lithology/alteration unit to account for miscellaneous volumes mined for muck bays, drill stations and underground sumps. The final tonnages in each category were rounded to the nearest 1,000 tons.

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The volumes used for design are tied to the results of the baseline geochemistry program, which identifies 17% of total rock production as PAG from the USZ, 01/0 SZ, and IG lithotypes. It is likely that there will be some additional PAG rock produced from the Ynl, the tonnage of which is not yet known. To address this concern, an additional 13% of total tonnage has been conservatively estimated (roughly one-third of the total tonnage of Ynl) as additional PAG, bringing the total estimated PAG to 30% of rock to be mined from the decline (27% in Table 21). This number is conservative, and could be as low as 20%.

In order to account for internal waste in the ore zone, it is proposed to mine as much as 10,000 tons of copper ore to obtain the bulk sample required for metallurgical testing. Ore would be mined from the short spur drift shown on Figures 2 and 15, late in the decline development cycle and if necessary, would be stockpiled separately on the PAG waste pad, until it can be shipped off site for testing. Table 22 presents data on the qualitative acid generation potential, tonnage and relative percent of the various geologic materials to be mine from the exploration decline:

Table 21. Volume of Materials to be Mined from the Decline Acid-Generation Material Type Tonnes Percent Potential PAG Waste Yes 36,000 27% NAG Waste No 99,000 73% Total 135,000 100%

Tonnages reported in Table 21 were increased by a factor of about 20% for contingency capacity in the design of the final pads (Table 22).

Table 22. Final Waste Rock Pad Design Capacity Waste Pad Facility Tonnage (tonnes) Cubic Yards PAG Facility 43,000 30,400 NAG Facility 120,000 85,000 Total 163,000 115,400

3.5.3.6 Waste Rock Stacking Plan and Geometry Figure 19 provides a plan view of the base of the NAG and PAG waste rock cells. The PAG cell containment area proper is a rectangular area about 200 x 280 feet, with the entire disturbance area of the pad being 0.8 acres. PAG wastes would be stacked to a maximum height 32 feet with the final stacking plan illustrated on Figure 21, and a final cross-section of the pad provided on Figure 22. Compacting of lifts would be desirable in order to limit infiltration and transmissivity. The PAG cell is designed to contain 43,000 tonnes (30,400 cubic yards) of waste. The PAG cell is designed to be expanded as explained below in the next section.

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Figure 19 also provides a plan view of the base of the NAG waste rock cell. The NAG cell containment area proper is a rectangular area about 300 x 350 feet, with the entire disturbance area of the pad being 1.84 acres. NAG wastes would be stacked to a maximum height of 55 feet with the final stacking plan illustrated on Figure 21, and a final cross-section of the pad provided on Figure 22. The NAG cell is designed to contain 120,000 tonnes (85,000 cubic yards) of waste.

3.5.3.7 Ability to Expand the PAG Pad Capacity Because the ratio between the PAG and the NAG waste rock is likely to change during actual mining of the Ynl, the layout of the PAG stockpile has been designed to accommodate additional volume. Figure 23 presents the conceptual idea for this construction design expansion.

Phase-1 would be constructed to handle the projected tonnage (43,000 tonnes of sulfide- bearing waste and Cu ore). Protection of surface water is an important goal of this construction flexibility. The key features to the expansion design are: . The down-gradient compacted fill embankment should be built to the maximum projected height and reclaimed (re-vegetated) as soon as practical . The base-liner of the pile must slope toward the downhill embankment to facilitate runoff collection . The uphill sides of the storage area must have a diversion berm to direct runoff from outside of the storage area away from the storage area . A sufficient liner overlap area must be maintained for adding additional liner for each expansion phase

Figure 23. Conceptual Plan for Expansion of the PAG Pad Facility

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3.5.3.8 Seepage Collection/Evaporation Ponds The seepage collection/evaporation ponds (Figure 24) located below the two waste rock storage facilities have been sized based on regional climatic data and the aerial dimensions of the waste rock storage and pond areas, for NAG and PAG respectively. Climate data used included precipitation rates of an average of 16 inches per year, with evaporation rates of 34 inches per year. Use of average values seems to be justified because water from the NAG pond can be discharged to LAD systems continuously or as necessary, and water from the PAG pile would be treated if necessary prior to discharge to LAD systems. The ponds would be constructed by removing and stockpiling soil material, preparation of a compacted subgrade, construction of down-stream embankments and lateral berms similar to those used for the waste rock pads, placement of a 3 inch thick compacted sand cushion layer (if necessary per manufacturer), and placement of a 60 mil HDPE geosynthetic liner. The margins of the liner would be folded into a typical anchor trench similar in design to that used for the waste rock pad liner (Figure 20). Both ponds have been designed to contain the 100 year 24-hour rainfall event and the total annual precipitation falling within the footprint of each of the waste rock storage facilities and their respective ponds (Table 23). The larger NAG pond has been designed to contain a total of 2.4 million gallons and requires a disturbance area of 2.05 acres. The smaller PAG pond is designed to contain 1.4 million gallons of seepage and requires a disturbed area of 1.08 acres. The pond design capacities and the contingency (Table 23) are justified by the ability to discharge water from the ponds to LAD systems. The water quality of seepage accumulating in the NAG seepage collection/evaporation pond is expected to be of a quality suitable for discharging directly to either surface or subsurface LAD areas on a continuous or an as needed basis. PAG pond water may need to be treated prior to discharge. No allowance has been made in these calculations for the 34 inches per year of average evaporation. A discussion of water quality and treatment in seepage collection ponds, including nitrogen compounds, is contained in sections 3.6.3, 3.6.4 and 3.6.5 below.

Table 23. Seepage Collection and Pond Design Capacity Facility Infiltration /Seepage 24-hr 100-year Total Pond Design (gallons per year) Storm Event (gallons) Total (20% (gallons) contingency) PAG Pad 593,453 11,869 605,322 PAG Pond 534,108 10,682 544,790 PAG TOTAL 1,127,561 22,551 1,150,112 1,380,134

NAG Pad 1,112,724 22,254 1,134,978 NAG Pond 874,283 17,468 891,751 NAG TOTAL 1,987,007 39,722 2,026,729 2,432,075

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3.5.3.9 Additional Investigations At this time the waste rock development area layouts are based largely on conservative assumptions that would need to be vetted before the design is ready for construction. The final design would incorporate the following information to be obtained during the design phase. . Actual equipment to be used to construct the waste rock storage facilities . Material Properties

o Subgrade o Rock for Cushion Layer – durability tests o Waste Rock . Slake durability . Liner properties and installation recommendations as per manufacturer . Seismic predictions for slope stability analysis . Evaporation pond details

3.5.4 LAD Areas Land Application Disposal systems (LADs) either on the surface or underground (infiltration) are proposed for the disposal of mine inflow and NAG waste rock seepage. Disposal of any mine water to surface LAD areas would occur via a surface drip emitter discharge system or traditional Rainbird-type irrigation systems. A major component of this method of water disposal is through evaporation so the Rainbird-type systems often work best, particularly during the spring-summer-early fall seasons when vegetation growth and evaporation rates are high. Use of these surface LAD systems could be most effective during initial dewatering when large volumes of water need to be disposed of, as opposed to smaller sustained mine-inflow later in the mining cycle. However, because water needs to be disposed of on a year around basis, large area underground drain field systems would be constructed to dispose of water below the frost level during winter months, returning water to the near surface colluvial and/or shallow fractured bedrock system. Tintina has conducted shallow and deep percolation testing to identify areas suitable for these types of disposal scenarios as is describe in the soil section (Section 2.5.2) above. Within these areas Tintina has developed the capability of discharging to two surface and one underground system that have considerable excess capacity for handling anticipated mine water. Tintina has discussed the need for an Underground Injection Control Permit (UIC) with the appropriate staff at EPA Region 8 in Denver. An application will be submitted to operate an underground LAD system under the UIC Program to the EPA. They will then determine if a permit is required or not, and work with the applicant to complete it if necessary.

3.5.4.1 Surface LAD Areas Because of the short application season at the project site, it is intended to use the surface LAD sites and systems as seasonal back-ups for the underground LAD system described in the next following section. Initially, over the first 1,700 feet of drifting, mine water production from the decline is expected to be very low to non-existent, with the majority of any water produced being recycled from a shallow surface pond near the portal or from near surface underground sumps for reuse in mine activities. For conservative planning purposes, we have assumed the Land Application Disposal (LAD) use would be consistent with the commencement of underground activities. Collection of mine water would begin immediately and would be diverted to storage in the NAG seepage/evaporation pond or directly to surface or underground LAD systems.

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Under the LAD plan, water would be sent from the staged near-surface mine sumps and delivered to one of two surface LAD areas or to the more extensive underground drain-field at the project site (Figure 15).

Approximately 35.5 acres of LAD areas are available for use within the F and J surface LADs areas as shown on Figure 15. These acreages were modified from those presented in the soils Section 2.5.2 above, by adjusting the areas to a larger size for area J to account for the entire area of the infiltration soil type, and by reducing area F to accommodate the proposed access road (Figure 14). Because of the surface slope at each site, the gently sloping 17.5 acre F-LAD area would likely use a spray type wheeled irrigation system using either Rainbird® sprinklers or spray heads. A spray type irrigation system would be installed and used most effectively during the warmest months to maximize evaporation. Area F is well suited for this type of system as the soils are thin and the underlying fractured shale has a very high conductivity. Because Tintina has developed excess disposal capabilities as described below, this system would be plumbed with a supply line from the underground sump but would be held in reserve, as a backup system that could be rapidly installed and placed into service as needed.

A drip irrigation system is planned for the more moderately sloping 18 acre J-LAD area. This site is particularly well suited for drip irrigation, because of the highly transmissive sandy surface soil, and the underlying fractured intrusive bedrock. Minor outcrops occur in this area suggesting that some small amount of this area is less than ideal for water application. The J- LAD site would be subdivided into nine 300 x 300 foot (2 acre) cells. The drip irrigation system is used to apply water in each cell with rotation of the application areas between cells to ensure the application rates and time periods are low enough to minimize surface ponding. A system of valves would be installed to allow ease of switching between cells. The drip irrigation system application design criteria would target 0.10 inches/hour rate for a total application depth of 12 inches. Literature suggests that clay, loam, and sand infiltration (absorption) rates can range from 0.10 to 1.0 inches/hour rate. A 5-day rotation is planned for each cell operated. The slope angle at the J-LAD area is not thought to be so steep as to create any mass-wasting instability in the hill side site.

Water would be delivered to the F and J LAD areas via a pipeline from the underground sump that would follow the subsurface LAD trunk line. Lateral drip lines would be installed perpendicular to the main distribution line for approximately 300 feet on 3 foot centers throughout the J LAD area. Drip emitters would be installed on the same spacing (36 inches) along each lateral drip line. The system would also be constructed to provide for drain-down during non-operational periods.

Based on a spacing of 36 inches and an emitter rate of 0.009 gpm, each 300 x 300 foot cell would operate at 90 gpm. Initially, only one cell would be required. To meet the targeted infiltration rate of 0.10 inches/hour, each cell could operate for 5 days and water would only be applied to a depth of 12 inches which is expected to be well above the groundwater level in these areas.

There are nine cells planned for use in the J-LAD area; the following illustrates the rotation/rest period that would realized at a discharge rate of 180 gpm (approximately the lowest flow volume estimated for the decline without any reduction in flow from grouting):

. 9 total cells with 2 cells operating at one time = 180 gpm . 9 cells/2 cells = 4.5 cycles between rotations . 4.5 cycles times 5 days per cycle = 22.5 days to cycle through to the next rotation

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At this rate each cell would be permitted to rest for about 3 weeks before water would be applied to the site in the next rotation. This rate of use is extremely low and would likely meet the evapotranspiration rate for the site. A groundwater monitoring well would be located below the LAD area and monitored for any water quality changes. The site would be visually inspected to ensure surface ponding and runoff is not occurring. It is expected that seasonal adjustments would be required to the amount/time water is applied to each cell(s) in an LAD. Because the mine discharge rate is expected to be low during the initial development, there would be an opportunity to better understand application rates and cell rotation. Drip emitter infiltration and spray-type systems cannot be operated effectively at temperatures below freezing.

The installation of surface LAD systems should require no surface disturbances except for overland access by pick-up trucks with trailers to move men and material onto the site for assembly of the systems.

3.5.4.2 Underground drain-Field LAD areas Subsurface drain-field systems are often used to avoid issues related to freezing surface conditions when water needs to be disposed of year around. Subsurface irrigation or drain-field systems are typically constructed with a tracked excavator that digs a 3-foot wide trench about 4 to 6 feet deep (below the frost line). Discharge water is distributed using a 6-inch HDPE pipe that is perforated in the areas where subsurface irrigation is desired, and left solid in areas that serve only to transmit water. The bottom 8-12 inches of the trench, in the segments to be used for irrigation, is filled with a washed gravel (solid sections of pipe are not bedded in gravel). The pipe is welded together and perforated in the appropriate sections and then laid in the trench. The perforated sections of the pipe would have 3 inches of gravel placed over the top of the pipe and the lower portion of the trench should be protected from fine soil infiltration using a filter fabric or plastic screen sections developed for that purpose. The trench is then backfilled with excavated material and soil is placed over the trenched area and re-vegetated.

From Soil Section 2.5.2 above, the areas identified as F, H, K, I, and J (Figure 11) are able to transmit or infiltrate large volumes of water and are therefore, well-suited for construction of subsurface systems. Hydraulic conductivities measurements of the deep paralithic material underlying surface soils at locations H and I (and by inference K) (Figure 11) resulted in a conservatively calculated average rate of 32 ft/day. Using this rate for the calculation of water disposal rates, the water disposal capacity of locations H and I (per acre of LAD system trenching) are 7,241 gpm and 5,924 gpm, respectively. Therefore, average water disposal capacities determined for locations F, H, and I gives an overall capacity of 6,000 gpm per acre of LAD trenching for the area of soil mapping unit 1175D which is located south of the decline portal along the broad ridge separating Little Sheep Creek and Coon Creek .

Using these infiltration rates it would take 14,520 lineal feet of three-foot wide trench to comprise an acre of trenching that was capable of disposing of 6,000 gallons of water per minute. Maximum flow rates from the decline have been predicted to be about 600 gpm, so in theory it could be disposed of in about 1,450 feet of perforated trenching. As a contingency (based on possible discontinuities in the paralithic zones and risks of saturating specific zones) the estimated lineal foot of perforated trenching required was doubled. On Figure 15, the underground LAD system is shown as a blue line that is dashed in the perforated sections. Tintina proposes to construct the system as shown on that figure, which includes about 3,200 lineal feet of infiltration drain-field trenching that could be capable of disposing of as much as about 1,200 gpm. Valves would be installed at all the pipe junctions in the system to allow for switching of discharge between zones to prevent saturation and allow for periods of rest

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between infiltration cycles. Tintina has identified locations for two additional lines each of about 1,000 feet in length that could be installed on either side of the mid-slope lateral off of the southern arm of the system.

Underground LAD systems require access by a tracked excavator, loaders, and trucks with trailers to move men and materials to the excavation sites. Surfaces disturbances would be necessary to provide this access and would consist of pioneered roads of about 26 foot in width. Trench would be excavated in the roadway. Total trench length is about 6,840 feet, making the total disturbance area for the subsurface drain system about 4.08 acres. Trenches would be backfilled, roads scarified, topsoil replaced and the area re-vegetated upon completion of construction of the subsurface system. The subsurface LAD is not expected to require much maintenance and routine inspections would be conducted by an inspector on an ATV.

3.6 Water Management Water management at the Black Butte Copper property would be a critical issue because of the massive sulfide mineralogy of the deposit and the need to protect surface and groundwater resources from contamination. Oxidation of massive sulfide ore in contact with water can generate acid and mobilize trace metal contaminants. Water management planning would need to incorporate a number of critical components to provide continuous source and migration control of these potential contaminants.

3.6.1 Water Inflow to the Decline Water inflows to the decline were modeled above in Section 2.3.1. The results of the modeling are reproduced in Table 24 below which provides two different methods of water inflow evaluation (Herth and Arndts, and Darcy’s Law) over three separate intervals (distance along the decline from the portal) in the mine. The range of overall mine inflow is estimated to be between 190 and 630 gpm. These estimates assume no grouting or other control measures to reduce decline inflows.

Table 24. Results of Inflow Analysis Herth and Darcy’s Law Section Arndts (gpm) 0-1700’ -- -- 1700-2900’ 175 614 2900-5200’ 10 12 Total* 190 630

Tintina’s principal mean of source control for water generated from underground workings is the implementation of an aggressive underground grouting program in advance of driving the exploration decline (see Section 3.4.1.2). Tintina believes it should be able to reduce mine inflow by as much as 70% with this grouting program. The resulting range of water inflow values would range between 60 to 200 gpm. Pumped dewatering of perimeter extraction wells (such as PW-2 and PW-3 along the decline alignment (Figure 7) could also be used by Tintina to dewater the block of ground prior to mining. Water generated by dewatering would be disposed of in LAD systems.

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3.6.2 Initial Use of a Mine Pond Initially, water for mining would be extracted from one of the existing water supply wells, used for exploration drilling water and hauled to a small lined temporary storage pond (10,000 to 15,000 gallons) constructed or stored on top of the portal pad near the portal. Water requirements for driving the decline would average about 20 gpm during the drilling cycle. Water used for drilling, dust control, and other mine start-up activities would be pumped and recirculated from this mine pond. Pond water would be replenished as needed until an underground supply of water is established. If water is encountered in the decline during the initial construction phase, it would be pumped to this pond to reduce hauled water needs.

3.6.3 Decline Water Disposal Once an excess amount of water is produced from the underground workings or the underground workings are sufficiently advanced (250 to 300 feet) to accommodate an underground sump, one would be constructed and the small surface portal pad storage pond would be abandoned. Produced decline water would then be pumped from the face through a series of two or more underground sumps constructed to allow settling of sediment from mine activities. Flocculent or other similar chemicals may be added in the ponds and/or the sumps to assist in settling sediment. Hydrocarbon booms or oil skimming capability may be added to the underground sump to remove any hydrocarbon contamination. Water from the underground sumps would be pumped through a buried 6-inch HDPE pipeline either to the NAG seepage collection/evaporation pond or most commonly directly to underground or surface LAD sites. The NAG seepage pond would be built with a capacity of approximately 2.4 million gallons. At a de-watering rate of 200 gpm, this results in approximately 1 week of storage capacity in the NAG pond, if all of the water from dewatering of the exploration decline were to report to the pond. However, it is intended that water from underground workings be continuously and directly discharged to the LAD systems and only or rare occasions be diverted temporarily to the NAG pond. Additional contingency plans for decline water handling in the unlikely event that the pond is full and discharges to the LAD systems could not be made (i.e., saturated ground conditions), would be to recirculate water between upper and lower sumps in the mine; alternatively under duress the underground mine workings could be allowed to flood.

3.6.4 Seepage Collection/Evaporation Pond Water Disposal Water generated in the decline and seepage in the NAG waste rock pond is expected to be of good quality and suitable for direct discharge to surface or underground LAD systems until the exploration decline reaches the deepest part of the decline beneath the ore zone (Figure 6) (see also water treatment section immediately below). Water from the NAG pad is to be disposed of by pumping to the underground sump and then discharging from the sump to an LAD, on either a continuous or as needed basis to maintain safe water levels in the pond. As was the case with decline water, in the event there is a need to divert water from the NAG pond it would initially be re-circulated through the deep and shallow sumps in underground workings. Alternatively if the underground water volume is excessive the mine would be allowed to flood until the pond and LAD systems were stabilized and could be used again.

Nitrogen levels in mine waters and blasting residues in mine wastes will be controlled by exceptional housekeeping practices in the handling of explosives underground. To minimize the effects of blasting residues on water quality, a concerted effort will be made to limit the use of the blasting agents to strictly that necessary for rock breakage and to minimize spillage. During exploration decline construction nitrogen and metal concentrations in surface and groundwater will not be allowed to exceed the respective aquatic or drinking water standards. Should excess nitrate or nitrite be identified at down-stream monitoring sites, work on the

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decline could be suspended by the DEQ until a remedial plan was put into place. Alternatively, the DEQ could require that a Montana Pollution Discharge Elimination System Permit (MPDES) be obtained from the DEQ’s Water Quality Bureau.

The two mine seepage/evaporation collection ponds are designed to hold a full year of NAG and PAG pad seepage respectively, and the 100 year-24 hour storm event from the waste rock waste rock pads and ponds. Pond levels would be maintained to ensure there is sufficient volume available to hold the 100 year -24 hour storm event, which is about 22,000 gallons for the PAG cell and 40,000 gallons for the NAG cell. The LAD piping system is sized to handle a minimum of 600 gpm which would be sufficient to handle larger storm events occurring at the site. Additional cells would be activated to bring the pond levels back into service should a large storm event occur. No credit was given in the calculations for evaporation from the ponds, in spite of the fact that evaporation (34 inches) is twice as large as annual precipitation (17 inches) per year. If evaporation is in fact that effective, it may be that far less water than anticipated needs to be disposed of from the NAG pad. However, it is also understood that significant amounts of evaporation could degrade the water quality in the NAG and PAG seepage collection ponds. Residence time for waters in the NAG seepage collection pond resulting from seepage from the NAG pile and some mine water derived from dewatering should be of short duration and can be controlled by discharge to the various LAD systems.

3.6.5 Waste Water Treatment As the decline trends deeper (about 280 feet below the surface and 2,900 feet from the portal) it would penetrate the ore body and encounter much lower permeability bedrock. Aquifer test results indicate bedrock hydraulic conductivity at this depth interval is approximately 0.015 ft/day. Calculated inflow to this lower section of the decline is less than 10 - 12 gpm. The major ion chemistry of the water at the lower portion of the decline is similar to that of the shallow groundwater system, but there are several metals present at higher concentrations including arsenic, strontium, thallium and zinc (in the aquifer deep water quality testing data presented above in Section 2.3.3. The arsenic concentration of 0.067 mg/L exceeds the Human Health Standard of 0.010 mg/L and the strontium concentration of 9.3 mg/L exceeds the Human Health standard of 4 mg/L. All of the remaining parameters meet applicable regulatory limits with most metals present at concentrations below detection limits including cadmium, chromium, copper, mercury, nickel, selenium, silver and thallium.

Water treatment facilities may be required during advanced stages of exploration decline construction, to treat whatever volume of water remains following minimization through source control, mixing and dilution, and LAD disposal. Treatment facilities being considered for both dewatering and for PAG seepage collection cell water include lime treatment and co- precipitation of arsenic with iron, reverse osmosis with thermal evaporation of brines for off-site disposal, sulfide precipitation, ceramic microfiltration, and zero discharge strategies. Other methods may be considered as project planning progresses and the actual resulting water quality becomes better known.

Alternatively, once the lower elevation levels in the mine are reached, the low productivity of water from the lithology hosting the deposit zone deposit (10 - 12 gpm), which also exhibits low concentrations of metals at concentrations that exceed groundwater standards would likely be significantly diluted by mixing with much higher flows (175 – 600 gpm) from the higher elevation zones within the mine along the stretch between 1,700 – 2,900 feet from the portal. With dilution ratios ranging from 10 to 60: 1, dilution of the low metal concentrations deeper groundwater with shallower more voluminous water that is suitable for discharge into LAD

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systems may well result in the entire mixed volume of the two waters meeting groundwater standards.

3.7 Access Roads Approximately 5.5 miles of existing road would be improved as necessary, plus an additional 2,890 lineal feet of new road (from Junction of Butte Creek Road to the edge of the portal pad) would be required to support exploration decline activities and to provide access to various support facilities. Locations of the existing and new access roads are shown on Figure 2. Access between Highway 89 and the portal and ancillary facilities would be primarily along the existing Sheep Creek (county) road and private ranch roads located on leased private property. The minimum work necessary would be conducted to provide year round access and upgrades for safety on these existing roads as part of the mobilization process. Proposed road modifications would occur almost entirely within the existing road prism and would include resurfacing a number of road sections to improve traffic flow, drainage control, and/or culvert replacement to reduce sediment yield from roadway surfaces. All roadway modifications would be conducted in consultation with the land owners, the county and DEQ.

New roads would be used to access the portal pad, waste rock dumps and seepage ponds. Due to the limited traffic anticipated for the access roads in the project area, roads would be constructed with a nominal 20-foot roadway width, a compacted upper surface and top dressed with gravel for the travelling surface. Cut slopes will be 1.5:1 to 2:1, fill slopes would be angle of repose. Drainage control will be established along the roadway and the cut and fill slopes to control erosion, culverts will be installed as necessary. Cut and fill slopes will be re-vegetated as soon as practicable. MSHA will require specific safety criteria (i.e., berms, etc.) on the private sections of new roads accessing the sites.

Vendor use and deliveries along project roads would be restricted to daylight hours and week days whenever possible.

Access to LAD areas for construction will be along the excavated trench, little maintenance of the LAD sites is needed other than for monitoring performance. ATV’s along 2-track trails would be used to access these sites after construction.

3.7.1 Surface Construction Equipment Various types of surface construction equipment would be required to support the proposed exploration decline project. Much of this equipment would be provided by a surface facility construction/excavation subcontractor. A list of the type and number of this equipment follows (Table 25).

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Table 25. Exploration Decline Surface Construction Equipment

Unit Number Dozer 1-2 Road Grader 1 Surface Haul Truck 1 Tracked-Excavator 1 -2 4x4 Pickups 4 Crew Vans 1 Snowplow-Sander 1 Portable Backup Generator 1 Portable Backup Compressor 1

Because of the year-around operational schedule, it would be necessary to plow snow during the winter. This would be accomplished with a snowplow-sanding truck assisted by a road grader, dozer and rotary plow if necessary.

3.8 Storm Water Control Best Management Practices (BMPs) for water control and a storm-water management plan would be prepared and implemented at the site to prevent co-mingling of unaffected surface and groundwater with water affected by mining or milling process. This plan would also control run- off from the site and adjacent areas. Storm water permits would be obtained as necessary to cover construction and operation of the exploration decline activities. Storm water management is typically implemented by diverting storm water runoff around disturbed areas, or by collecting runoff for sediment removal prior to discharge. The majority of storm water runoff at the site would be controlled by diversion around disturbed soils. Diversion structures would consist of drainage ditches or swales, spreaders, sediment traps, rock berms, straw wattles, and slash windrows. Drainage structures would be sized to safely convey the 24-hour, 100-year storm event.

All storm water controls would be constructed prior to, or in conjunction with, soil removal and stockpiling. All storm water controls are passive systems that require regular inspection for eroded areas and build-up of sediment in the slash windrow or sediment traps. With proper maintenance and inspection, each storm water control would remain in operation until completion of the exploration decline and subsequent stabilization and revegetation of disturbed areas.

A surface water diversion ditch around the upper sides and side slopes of disturbed areas at the decline site would be used to divert clean storm water from the disturbed areas within the site (Figure 17). The portal pad would be gently sloped to the south to divert drainage to the berm at the margin of the pad. Water captured in the toe ditches surrounding the waste rock pads and seepage collection ponds would be diverted to the seepage ponds.

The run-on diversion ditch above the decline site would collect water and divert it to both sides of the portal pad. Energy dissipation features or spreaders would be constructed where the surface water diversion outlets meet undisturbed ground. The spreaders would convert the flow concentrated in the diversion ditch to sheet flow and discharge it over an erosion blanketed lip to an undisturbed area at non-erosive velocities. The spreaders would be located such that the

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discharge water would not be collected by the down-slope berms or concentrated in down-slope channels. If site conditions determine that the spreaders are not appropriate for the site, down- slope drainage channels and energy dissipating outlets would be specified.

Sediment carried from the decline patio slope by storm water runoff would be periodically removed from the ditches and sump(s) collection drains or infiltration basins for disposal on the NAG waste pile.

Figure 17 shows the general location of surface water run-on and run-off diversion ditches developed for the exploration decline construction site and its supporting facilities. A SWPPP would be developed for the project site illustrating the final layout with respect to storm-water management. The SWPPP would be updated as needed to accurately reflect actual site BMPs conditions.

Best Management Practices (BMPs) would be used to manage storm water at the site. Examples of BMP’s that would be implemented are included in “Water Quality BMPs for Montana Forests” (MSU Extension Service, 2001). A Storm Water Pollution Prevention Plan (SWPPP) would be developed incorporating the following concepts: . Berms would be installed throughout the property to control both storm-water run-on and run-off. . Sediment fencing or other similar methods such as straw bales and berms would be used to control sediment from disturbed areas. . Run-on diversions would be installed to keep run-on from entering the mine disturbance boundaries. . Run-off diversions would be primarily located at surface facilities and would separate contact storm water and non-contact storm water. . Regular inspections would occur after major precipitation or other run-off events and also on a routinely scheduled basis to ensure that BMPs are functioning properly. . Snow will be plowed off of the project access roads as required. Good drainage will be establishing along all access roads and travel surfaces before winter of each year. Particular attention will be paid during the spring snowmelt/run-off season to ensure that water is controlled along access roads and in disturbed area of the site to minimize erosion and the transport of sediment.

3.9 Project Schedule and Personnel 3.9.1 Project Schedule Construction of the decline, underground drill stations, drilling and bulk sampling would require approximately 8 to16 months. This schedule anticipates 1 month to mobilize and set up including construction of select portal pad facilities, and approximately 6 to 12 months to drive the decline. Underground drilling activities and bulk sampling would take 2 to 6 months to complete depending on drill results and might begin during the decline drive. Demobilization and future closure of the decline would take about one month however, a decision to close the decline either temporarily or permanently would depend on the results of the underground drill program and/or a decision to apply for an Operating Permit.

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3.9.2 Number of Employees and Principal Tasks Average quarterly employment for the decline construction and development drilling period is shown in Table 26. Mining crews would nominally consist of 5 to 6 miners per shift and underground drilling crews would consist of 2 people per drill per shift and typically require assistance from the miners for moves and material handling. Additional personnel would include the project engineer, site superintendent, chief geologist, field geologists, environmental technician, head mechanic, head electrician, drillers, and surface laborers. The maximum number of employees would be about 45 people. Principal tasks per quarter are also depicted in Table 26.

Table 26. Average Quarterly Employment and Principal Tasks Employees Quarter Awaiting 1 2 3 4 5 6 Permitting Admin/Supervision 3 6 6 6 6 6 2 2 Hourly1 14 24 24 24 39 39 2 2 Total 17 30 30 30 45 45 4 4 Decline Const. Development Care and Drilling/Bulk Maintenance Mobil- Sampling and Principal Tasks Decline Const. while awaiting iation Temporary or Permitting, and Permanent Monitoring Closure and Monitoring

1 Miners, drillers, and laborers

3.9.3 Employee Work Schedules Project work would be conducted on a schedule of two 12-hour shifts per day, seven days per week while driving the decline and while executing the underground development drilling program. Four mining crews and drill crews would be used in the rotations. Waste rock hauling from the portal to the waste rock facilities will be scheduled for day shifts, if surface truck transfer/haulage is required for these materials. Deliveries and some administrative personnel would be scheduled for day shift, on a five days/week basis.

3.10 Other Activities 3.10.1 Fire Protection Fire protection is a typical component of a construction project, primarily relying on fire extinguishers. All vehicles would be equipped with fire extinguishers and shovels. During the summer forest fire season, Department of Natural Resources and Conservation (DNRC) guidelines would be followed. Tintina would require employees, contractors, and subcontractors to comply with all applicable Federal and State fire laws and regulations and insure that they take all reasonable measures to prevent and suppress fires in the area of operations.

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3.10.2 Solid Waste Disposal All solid waste would be disposed of in accordance with rules and regulations of the Waste and Underground Tank Management Bureau, of the Montana DEQ. No landfill would be constructed on site. Appropriate containers for various types of refuse would be provided at appropriate locations at the site. For refuse that contains food or other items that could be an attractant to wildlife, appropriate containers would be properly located to minimize wildlife access and would be emptied frequently. Tintina would contract garbage removal services for regular pickup at the mine site. Recycling would be implemented wherever appropriate and applicable. All other wastes would be trucked to an approved county landfill or a recycler. No hazardous wastes would be disposed of at the site.

3.10.3 Site Security A fence would be constructed around all areas in which mining related activities would take place and around all surface disturbance areas including the access road if required to control cattle movement. Vehicle access to all fenced areas would be provided by gates. A cattle guard and a lockable gate would be installed at the entrance to the mine access road at its intersection with the Butte Creek Road. Signs would be posted to discourage trespassing.

In addition, a mine portal gate would be installed as required by MSHA regulations. Because the operating schedule is anticipated to be 7 days per week, mine staff would provide security personnel, in the event of a longer term closure the company may elect to hire a watchman.

3.10.4 Hazardous Materials All hazardous materials (fuels) would be stored in DOT approved containers with secondary containment. A combined Storm Water Pollution Prevention Plan (SWPPP) / Spill Prevention Containment and Clean-Up (SPCC) plan for the project would be prepared that addresses the potential for accidental spills of fuel or other hazardous materials such as hydraulic fluid, grease, or coolant. All hazardous material wastes from the site would be picked up and removed by a licensed commercial hazardous waste disposal company.

3.10.5 Lighting All exterior lights would be shielded to reduce visual impacts from viewpoints in the Sheep Creek valley.

3.10.6 Noise All surface vehicles would use discriminating backup alarms that comply with MSHA requirements where backup alarms are required. Noise levels would be maintained at less 82 dBA from ventilation fans. The portal would function as both the intake and exhaust of mine air.

Noise levels have not been measured at the site.

3.10.7 Temporary and Permanent Shut-Downs In the case of a temporary shut-down, other than a seasonal or short term cessation due to access conditions or weather or fire, the DEQ would be notified in writing by a verification statement indicating the shutdown has occurred and that facilities are secure at the site, with an expected reopening date and estimated duration of the shut-down.

All equipment would be removed from the underground workings. Pumps would be turned off and the mine would be allowed to flood. Portal and access road gates would be locked and a

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barrier baring entry would be placed outboard of the portal gates. On-site equipment would be secured or placed in a building for storage. A routine watch schedule would be set-up and on- site power generation capabilities would remain at the site in order to insure seepage collection ponds did not overfill and so that any excess water in the ponds could be pumped to LAD areas for disposal.

The use of a temporary cover may be considered to minimize the infiltration of precipitation into the waste rock facility. This might be particularly effective during longer periods of inactivity at the site for example after completion of the underground exploration program and prior to the completion of the mine permitting process; or during seasonal stretches of high rain and snowfall.

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4.0 MONITORING AND MITIGATION PLANS

Monitoring is necessary to assess baseline environmental conditions prior to disturbance and to evaluate potential environmental impacts that may result operationally from the proposed exploration decline activities. Monitoring during active mining activities would be required in order to identify whether these activities are impacting the environment thereby necessitating operational changes and/or mitigation measures. Mitigations are operationally implemented plans or procedures designed to minimize or reduce possible or observed impacts to resources. Post exploration monitoring is also discussed by affected resource.

4.1.1 Air Quality Tintina would implement dust control measures by watering or the use of chemicals on high traffic areas along access roads that can create dust that can be further exacerbated by blowing wind. Waste stockpiles would also be watered when necessary to minimize dust while loading or unloading material. Monitoring by site personnel during each shift will ensure watering is done to the level required to minimize the effects of dust at the site.

The ambient air monitoring station just west of the core shed (Figure 2) would remain operational during the period of exploration decline construction and evaluation. The station was established to accurately characterize the local meteorology and collect baseline data in support of a mine operating permit application, and various ongoing environmental studies.

An Air Quality permit may not be required for the construction and operations of the Project’s exploration decline. However, detailed information for the two generators and a list of equipment and specifications for all other emissions sources would be compiled for submittal to DEQ’s Air Quality Bureau for review and final determination of potential permitting needs once specific pieces of equipment have been selected for the exploration decline. If a permit is required, one would be applied for. The conditions of this permit may require air quality monitoring for particulates, but the scale of the exploration decline project probably does not warrant this level of testing.

4.1.2 Surface and Groundwater Resources Tintina is currently monitoring water resources as part of baseline data collection for the proposed exploration decline and exploration permit compliance monitoring. Eleven surface water stations have been established as baseline monitoring sites (Figure 7). Flow, stage and field parameters (temperature, pH and SC) are monitored quarterly at all of these sites. Water quality samples are collected at six of the sites during quarterly monitoring. In addition, seven groundwater monitoring wells at the project site are also monitored quarterly. Thirteen seeps and spring are monitored annually. The parameter list is included in Section 2.3.1 (Table 3) above.

Monitoring at this level will certainly continue through the various stages of development of the exploration decline and evaluation of the mineral deposits from underground, and through any temporary closure intervals. Additionally, at least four more monitoring wells are recommended for installation. One pair of wells (shallow and deep) would be installed in the down-gradient area below the portal pad, waste rock storage and seepage collection ponds. The other two wells would be relatively shallow wells down-gradient of the two major LAD areas.

Additionally, once the decline construction was initiated, water quality monitoring would be proposed for the underground decline water, seepage from the waste rock pads, the seepage

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collection ponds, and water being discharged to the LAD areas. Initially monthly sampling would be proposed for these sites, with the frequency of sampling being adjusted to either longer or shorter periods pending the values and trends of results. Daily, records of discharge volumes and receiving cells for the LAD sites would also be maintained. Saturation of soils evidenced by surface ponding or downslope seepage would not be permitted; routine weekly inspections will be conducted.

The decline is not anticipated to significantly impact the surface water resources of Coon Creek or the adjacent wetlands, because of the 90-foot depth of the decline beneath the stream and shallow near surface groundwater levels. Additionally it is likely that the mine will need to grout the decline at depth beneath these features.

Post closure monitoring for the exploration decline water resources would likely see a reduction in the number of sites monitored, but not necessarily the parameter list. The final post- construction water resources monitoring program would be developed and approved in conjunction with the Montana DEQ. Results of monitoring during construction would be used to establish monitoring sites, analytical parameters, and frequency of monitoring during the post- construction period.

4.1.3 Ore and Waste Geochemistry Results of the geochemistry baseline study (see Section 2.6.2) indicate that the igneous intrusive (IG), lower Newland dolomite “nose” (Ynl0), lower Newland footwall shale and conglomerate (YnlB), and much of the undifferentiated lower Newland Formation (Ynl), are strongly net neutralizing and are unlikely to generate acid. These rocks can safely be designated as non-acid generating (NAG), as shown in Figure 13. Apart from the IG, which showed elevated concentrations of Al, Fe, and Cr in SPLP extracts, these NAG lithotypes also have low potential to release metals in concentrations that exceed groundwater standards, suggesting that they can safely be stockpiled off liner with appropriate monitoring and mitigation. Based on SPLP results, potential does exist for leachate concentrations to exceed surface water standards for aluminum, chromium, and selenium, particularly from the IG, indicating that care should be taken to prevent surface discharge from the rock pile facilities. Further detail on these results is presented in a separate report by Enviromin and Tetra Tech (2012).

The USZ is strongly acidic and should be handled as potentially acid generating rock (PAG), on a lined pad in the PAG facility. Given the small tonnage of IG that would be intercepted, it may be best to place it in the PAG facility as well, to avoid any associated release of metal. Although the Sub 0 sulfide zone that delineates the transition from upper to lower Newland was not tested in this program, it is clearly sulfidic and should be managed as PAG.

The occurrence of one uncertain sample, in the relatively small population of Ynl samples (n=9), is problematic and would require further evaluation during construction of the decline. At this low level of initial sampling, it is not possible to assign true frequency of NAG and PAG materials within the Ynl with confidence. Review of the stratigraphy in drill logs indicates that sulfide in the upper Ynl (above the Ynl 0 dolomite) occurs in trace quantities and local interbeds within carbonaceous rock and may only be locally enriched to concentrations that produce acidity. In the lower Ynl, sulfide content is higher and more consistent, with local interbeds like the sub 0 SZ, as the rock transitions to the more massive sulfide mineralization of the lower ore zones. If the frequency of acidic rock in the overall Ynl is low, it may be possible to rely on the strongly net neutralizing character of the remaining Ynl and other non-USZ lithotypes to neutralize any acid that is produced; this is particularly true of the upper Ynl in the vicinity of the 2012 decline.

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Available data cannot support this conclusion, however, and the collection of additional Ynl samples for static testing would be conducted prior to placement of any Ynl in the NAG waste rock facility.

Validation during construction of all lithotype classification, and NAG testing to support sub- handling of the Ynl, would occur. The criteria put forward in Table 27 are intentionally conservative, to prevent any problems associated with the unlined NAG facility and to provide information for future geochemical studies.

Table 27. Selective Handling Criteria Black Butte Copper 2012 Exploration Decline

Lithotype % tonnage Designation Criteria Justification Add. Data1 NAG pH > 4.5, Confirmation Ynl O 6 NAG lithology NP:AP > 3, low sampling metals NAG pH > 4.5, Confirmation Ynl B 26 NAG lithology NP:AP > 3, low sampling metals NAG pH > 4.5, Mapping, static Operational Ynl 41 NAG NP:AP > 3, low analyses, NAG > 4.5 metals kinetics Mapping, static Unknown % Operational NAG pH < 4.5, Ynl sulfide PAG analyses, of Ynl NAG pH < 4.5 NP:AP < 3 kinetics Sub 0 SZ 5 PAG lithology nd none Elevated SPLP Confirmation IG <1 PAG lithology metals sampling NAG pH < 4.5 USZ 11 PAG lithology none NP:AP < 3 Copper Ore 10 PAG lithology nd none

1 See detailed testing plan below 2 Nd – not determined 3 Note: Sub 0 SZ and Copper Ore were not included in the baseline geochemistry study for the decline

A program for geochemical sampling and analysis would be needed to support selective handling of the Ynl from the exploration decline, and to confirm the NAG classifications of lithotypes based on drill samples. These efforts would support the decline construction in the short term, and would direct the overall geochemical baseline study that is planned for the proposed mining operation. The implementation of this rock management program involves three recommended levels of additional analysis during the exploration decline program:

1. NAG Confirmation Sampling. The sampling strategy for this baseline study was focused on covering the range of variation observed in lithology, hand specimen mineralogy, and exploration geochemistry of observed in a small number of drill samples. Although the number of tested samples is high, relative to the low proposed tonnage for each lithotype, Tintina would confirm the baseline results through collection of additional samples for static analysis during construction of the decline, to provide infill information between the intervals sampled by drilling. Additional samples would be collected from each lithotype during decline construction, the number of which would be justified through geologic mapping of exposed rock. These samples would be tested using NAG

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pH, with splits archived for offsite ABA testing and possible future metal mobility and kinetic work. Additional kinetic testing of the NAG lithotypes to confirm lack of acid generation potential and evaluate metal mobility is not necessary in the short term, as it will be addressed within the forthcoming mine baseline geochemistry program when a broader cross-section of samples are available for study from across the deposit. If there is a need to consider use of one or more of the NAG lithotypes as construction material in the near term, kinetic testing can be initiated sooner using a more limited suite of samples.

2. Delineation and operational NAG testing of the Ynl to identify PAG fraction a. Detailed geologic mapping of the Ynl will be performed to define sulfide distribution and locate zones of sulfide enrichment, relative to stratigraphic markers of relevance to mining operations. Sedimentary or structural features controlling sulfide occurrence will be identified, in anticipation of operational selective handling. Ynl samples will be collected for static and kinetic analysis to represent the observed variation in lithotype. b. Onsite NAG testing during construction would be used operationally to differentiate between NAG and PAG rock within the Ynl. Samples with final NAG pH less than 4.5 will be placed in the lined PAG repository. Splits for ABA should be collected for offsite analysis, to allow correlation with baseline data as presented in Figure 13. c. One composite each of delineated NAG and PAG Ynl should be submitted for both metal mobility and kinetic humidity cell testing.

3. In situ monitoring of water quality in decline and on NAG/PAG waste rock pads. Water quality will be monitored on or near the waste rock pads and in the decline, over a period of years, to evaluate changes in chemistry due to weathering of exposed and blasted rock. Also, analysis of mineral products of weathering would be performed for both run of mine NAG and PAG. Results of this in situ work will be used to scale future kinetic test results that will conducted during the site-wide baseline geochemistry program.

Results of the exploration decline geochemical sampling and static testing program would be submitted in quarterly reports to the agencies during construction, and in an annual report following construction for any longer term water quality monitoring. A separate report will be prepared describing the selective handling, metal mobility, and kinetic testing of the Ynl NAG and PAG materials.

Data collected as a part of the decline sampling program will be considered as part of the site wide geochemistry baseline study.

4.1.4 Soils Prior to soil disturbing activities the county soil survey and baseline soil data would first be assessed to determine the depth and volume of salvageable topsoil and subsoil. This has been conducted for soil mapping unit 1175D (as described in Section 2.5) where most exploration activities and facilities would be located. Physical data that would be evaluated would include depth, texture, organic matter content, and coarse fragment content. Chemical data would include, at a minimum, pH, cation exchange capacity and electrical conductivity. Once the suitable depths are determined, topsoil and subsoil would be stripped from all areas to be disturbed prior to land disturbance (i.e., waste rock storage areas, roads, soil stockpile areas).

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Salvaged topsoil and subsoil would be stockpiled separately and would be seeded with an approved seed mix to prevent weed invasion or erosion. Salvaged soil would be replaced as described in Section 5.6.

Soil stockpiles would be re-vegetated to prevent water and wind erosion until they are scheduled for use in closure. Sub- and top-soil would be stored in four separate stockpiles, two above the decline and two above the waste rock storage facilities sites (Figure 17). Piles would be marked. Stockpiles would be constructed with 2.5h:1v side slopes and 3h:1v ramps. Soil stockpiles would be incrementally stabilized to minimize erosion. Broadcast seeding would be conducted during the first appropriate season following stockpiling. Fertilizer and mulch would be applied to the piles as necessary. The estimated life of each stockpile is the life of the decline.

Stockpiled soil would be tested before re-spreading to identify what, if any, deficiencies or limitations in soil physical and chemical properties exist that may be affecting plant growth. Appropriate fertilizer, liming, organic matter, and other amendments would be determined prior to use for reclamation.

4.1.5 Weed Control Tintina has a weed control program in place, whose effectiveness has been significantly improved as a result of site visits by DEQ personnel. The program will need to be expanded to include new areas of activity and surface disturbance. Never-the-less, Tintina shall make reasonable and conscientious efforts to identify, control and suppress the introduction of all weeds which its operations introduce, or are likely to have introduced. Noxious weeds would be controlled using appropriate mechanical, biological and chemical treatments which meet the requirements of Montana and Federal laws and a weed control plan to prevent the establishment and spread of weeds along mine access roads, areas disturbed for exploration, mining, and processing activities, and soil stockpiles. This plan would be developed between the landowners, Meagher County weed control officials, DEQ and Tintina.

4.1.6 Cultural Resources Cultural resources were surveyed in areas likely to be within the area of influence or surface disturbances related to exploration decline operations. Only one cultural resource site lies within the proposed disturbance area. The site that could potentially be impacted, and will therefore, will be excavated by archaeologists (scheduled for November of 2012) to determine its significance and their importance of preserving or simply documenting the site. In addition, the disturbance areas associated with the proposed underground LAD system (Figure 15) are also scheduled to be surveyed in November of 2012. Future areas proposed for disturbance will be survey for cultural resources prior to disturbance.

4.1.7 Wetlands A baseline wetland survey has been performed to clearly delineate any wetland areas in the project area. However, areas evaluated during the preliminary wetland resource survey (Section 2.3.4) indicate that they are not located in areas where exploration activity is expected to occur in association with the proposed exploration decline.

If present, wetlands would be clearly marked and mine operations would be conducted to avoid these areas. If it is necessary to enter wetlands during exploration activities all applicable State and Federal permits and regulations would be obtained and adhered to.

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4.1.8 Sediment Mitigation Sediment could be generated from non-vegetated disturbance areas, including the decline portal, the ore-processing area, or access roads during periods of high rainfall or snowmelt. Sediment would be prevented from moving into area streams by maintaining BMPs consisting of berms and/or silt fences along the perimeter of the water supply pond and also along the access road. All storm water controls would be constructed prior to or in conjunction with soil stockpiling.

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5.0 RECLAMATION PLAN

The exploration decline evaluation program is intended to provide data that would support the feasibility of future underground mining at the Project site. If further development of the Project moves ahead following completion of the underground exploration drilling program, the decline would remain operational as a main access and haulage level decline for the duration of the mine-life. Facilities not needed at the decline site would be removed and new facilities would be constructed as necessary. Ore would be transported to the mill for processing once constructed.

If the Project is deemed uneconomic after the exploration phase is completed, either temporary or permanent closure plans would be implemented. The following description of site reclamation is focused primarily on final reclamation of the exploration decline site, its support facilities, and other disturbance following a decision to not move forward with the project. Temporary decline closure is discussed further in Section 3.10.7 above, and if a temporary closure were undertaken Tintina would request that deferred implementation of the permanent closure plan be approved by DEQ. Concurrent and interim reclamation would be implemented as soon as practical (during construction and in closure) to reduce the amount of un-vegetated area and minimize soil erosion.

Tintina would meet with and review the previously approved closure plan with DEQ and any proposed revisions or diversions from the plan would be submitted to DEQ in writing for their review and approval. Tintina would initiate closure and reclamation activities within four years of their being a decision to not move forward with the project unless the closure was deemed to be temporary. An extension of the four-year time frame could be requested from the DEQ if circumstances warranted.

5.1 Post Construction Land and Road Use Post construction land use at the decline site would remain primarily grazing, recreation and wildlife habitat. Many reclamation commitments are embodied in the underlying property lease agreements to reestablish these land uses. Reclamation activities will be undertaken to meet exploration license requirements, site stability, minimize erosion, and provide a self-sustaining vegetative plant community. Meeting these objectives would assure that post-exploration land uses are attained.

The Sheep Creek and Black Butte roads would remain for public access, while roads such as the access road to the decline portal (Figures 15 and 17) on private property would either be reclaimed or left open at the request of the landowner. Closure of the road would consist of obliteration with re-contouring of the road disturbance and its materials to blend with existing topography. Road disturbance areas would have topsoil placement and reseeding with approved mixes to reestablish vegetative cover.

5.2 Post- Exploration Solid Waste and Facility Disposal and Decline Closure Should a decision be made that the project would not be advanced after evaluation work is completed, all buildings, related equipment and infrastructure at the decline site not needed for use by the land owner, would be dismantled and removed. The buildings would be recycled or disposed of at an approved facility, as would all above ground piping and other infrastructure. Concrete foundations would be broken up leveled and buried on the portal patio site with a

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minimum cover of 1.5 feet of fill material, or more likely buried with addition fill as the portal pad is reclaimed. Following removal and/or salvage of facilities, any remaining solid waste would be disposed of in accordance with laws and regulations of the Montana Waste and Underground Tank Management Bureau and Meagher County. Valuable inert waste such as steel, concrete, plastic or wood would be sold to scrap dealers for recycling; some waste may be transported to an approved waste transfer station as authorized by the county solid waste district.

5.3 Decline and Portal Pad Closure The decline is not anticipated to make or discharge water at or post-closure. The decline portal would therefore be backfilled to prevent access to the underground workings. All mobile equipment would be removed from the underground workings. Pumps would be turned off and the mine would be allowed to flood. It is proposed to close the portal with a cemented rock back-fill for at least the first 25 feet of the underground workings. If there is risk of subsidence based on the ground conditions at the portal, a longer section of workings will be backfilled with NAG waste rock until stable conditions were reached.

The portal pad is scheduled for re-grading and revegetation, which would further bar the workings from entry. The portal patio fill slope material would be used to backfill the cut at the back of the patio, excess material would be blended out to a final reclamation slope of 2.5 to 3:1. The perimeter of the reclaimed site would be graded to blend with surrounding topography. A stabilized drainage would be re-established. Stockpiled soil would be placed over the re- graded surfaces and the area seeded.

5.4 Seepage Pond and Waste Rock Pads Closure The seepage collection ponds would be drained with the water either being discharged to the LAD system or processed through a treatment facility, if necessary. Liners would be removed and buried in the bench of the portal pad closure prior to reclamation or hauled off site for disposal. Compacted surfaces at the base of the waste rock facilities would be ripped to relieve compaction and allow for future water infiltration.

All of the PAG waste rock stockpile would be backfilled into the decline below the projected water table prior to the portal closure. Portions of the waste rock from the NAG pile would also be placed underground to decrease the volume for reclamation and to stabilize shallow depth workings from possible future subsidence. The remainder of the NAG pile would be re- contoured in place with some material being used to fill the seepage collection pond basins and the PAG pile original excavation. The perimeter of the reclaimed site would be graded to blend with surrounding topography, topsoil placed and re-vegetated.

5.5 LAD Trench Site and Water Supply Line Closure LAD system and water supply line trenching would be reclaimed immediately after initial construction. In closure all surface piping would be removed, and compacted two track access trails would be ripped and re-vegetated. Underground piping will not be removed, however, ends of solid sections of piping would be excavated and the pipe ends capped.

Surface LAD sites would have drip emitter piping removed and recycled and spray-type irrigation systems would be disassembled and removed for reuse by the local ranchers. Water

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tanks would be removed for recycling (probably also by local ranchers). Fences installed around decline facilities would be removed.

Monitor wells not scheduled for post closure monitoring would be plugged and abandoned according to applicable laws and surface casing would be cut off below the ground surface.

5.6 Post-Exploration Water Quality Monitoring Both short- and long-term water quality monitoring programs would be established with the DEQ, based on baseline studies and data collected during exploration that prescribes surface and groundwater sampling sites, analytes and frequency of sampling. Presumably these sites would be selected as a subset of the current water monitoring sites.

5.7 Soil Salvage and Replacement Soil would be salvaged prior to disturbance, stockpiled for replacement during reclamation activities. The following sections detail soil salvage and replacement activities.

5.7.1 Soil Salvage The suitability of soils proposed for reclamation would be determined from physical and chemical data collected during the baseline soil survey (see Section 4.1.4). All suitable topsoil or growth medium would be removed prior to commencing construction activities. It is expected that soil thickness would vary considerably throughout the proposed disturbance area.

Soil salvage quantities would be limited by slope, shallow depth to bedrock and exposed bedrock at the decline site. Adequate soil volume appears to be available as discussed in the soil section (Section 2.5.1) above. However, in the event of a shortage of cover soil, soils containing coarse fragments in excess of 50 percent by volume would be salvaged for use in reclamation so that no offsite topsoil would be required.

5.7.2 Soil Storage and Protection First subsoil lift and second topsoil lift would be stored in four separate stockpiles, two above the decline and two above the waste rock storage facilities sites (Figure 17). Piles would be marked. Stockpiles would be constructed with 2.5h:1v side slopes and 3h:1v ramps. Soil stockpiles would be incrementally stabilized to minimize erosion. The stockpile surface would be loosened if necessary to provide a proper seedbed. Broadcast seeding would be conducted during the first appropriate season following stockpiling. Fertilizer and mulch would be applied to the piles as necessary. The stockpiles would be re-vegetated to prevent water and wind erosion until they are scheduled for use in closure. The estimated life of each stockpile is the life of the decline.

5.7.3 Soil Testing and Redistribution Prior to soil redistribution, compacted areas (especially the access roads) would be ripped to relieve compaction. This would also eliminate potential slippage to layer contacts and promote a hospitable root zone. Soil materials would be applied in lifts as thick as possible to decrease compaction.

Stockpiled soil would be tested before re-spreading to identify what, if any, deficiencies or limitations in soil physical and chemical properties exist that may affect plant growth. Appropriate fertilizer, liming, organic matter, and other amendments would be determined.

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Soils would be redistributed to achieve a uniform thickness, reduce compaction, and minimize deterioration of chemical and physical soil properties. Second lift subsoil would be redistributed evenly over the disturbed area allowing an average redistribution depth of approximately 15 inches of subsoil. Approximately 6 inches of topsoil would be placed on top of subsoil in a second lift providing roughly 21 inches of plant growth medium.

5.8 Revegetation Revegetation of the decline site and access roads from the Black Butte Road to the decline would be conducted to stabilize disturbances and restore wildlife habitat, watershed characteristics, soil productivity and visual resources to be consistent with post operation land use objectives. If required by the landowner, private access roads constructed in support of mine operations would be re-contoured prior to revegetation.

5.8.1 Revegetation Mixture and Rate The decline site occurs primarily within montane sagebrush steps and montane grassland habitat types, and also includes a small area of conifer dominated woodlands. Native vegetation seed mixes would be tailored to the soils, climate, environmental setting, proposed land use, and plant community desired on the site. Seed mix would be reviewed and approved by DEQ prior to application. Reseeding would be applied at a rate of 20 PLS per 0.09 m2.

5.8.2 Seedbed Preparation and Seeding Method Seedbed preparation would be conducted immediately after grading, spreading soil and, if used, fertilizer application. On slopes less than 33 percent, the seedbed would be tilled and harrowed along the contour to break up large clods. On slopes exceeding 33 percent, on sites too narrow to negotiate with equipment, or on sites where organic debris has been re-spread, the soil surface would be left in a roughened condition. Seed and mulch would be applied during reclamation and closure, but also applied to fresh road cuts and fills as soon after construction as possible to ensure coverage by natural sloughing.

Cultural treatments would be practiced to ensure successful revegetation and include fertilizing, mulching and re-spreading woody debris. Ripping would be conducted prior to soil application to reduce compaction of the top of the waste rock dump, building sites and the portion of road surface that would be reclaimed. Reapplied soils would be cultivated to break up the soil mass to improve water and air movement.

The decision to use fertilizer would be based on cover soil tests; application rates would be formulated to achieve soil macronutrient levels capable of promoting plant growth and productivity.

5.9 Reclamation Monitoring Reclamation monitoring or visual (ocular) surveys would be conducted for, species richness and diversity, to identify potential problems that could hinder successful establishment and sustainable vegetation including but not limited to soil erosion and weed infestation. This would identify the need for and trigger the initiation of reclamation maintenance to correct problems.

5.9.1 Soil Erosion and Construction Monitoring Soil erosion and construction monitoring includes monitoring during active construction as well as long-term maintenance monitoring in closure. Monitoring would be conducted at the

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exploration decline site, waste rock dump, and access roads to identify areas where slumps, rills, , and sheet-wash might occur. Any identified erosion problems would be immediately corrected. Routine long-term maintenance monitoring would be conducted during spring and fall after heavy storm events.

5.9.2 Revegetation Monitoring Revegetation would be monitored annually during the growing season to identify areas where vegetation may be failing and to determine the cause, and document successful revegetation efforts. Revegetation monitoring would be conducted in conjunction with routine soil maintenance monitoring. Systematic ocular inspections would be conducted to identify areas that have inadequate cover, poor seedling growth, damage (winter die off), or obvious nutritional deficiencies. Annual inspections would be conducted with a person from the DEQ whose responsibility would be to determine when a revegetation program would be deemed successful, such that annual inspections were no longer necessary.

If during an inspection problem areas are encountered, the cause would be identified. If the cause appears to be related to soil infertility or toxicity, a soil testing program would be implemented. Tests would be conducted to ascertain macro- and micronutrient status, pH, cation exchange capacity, and potential toxicity and heavy metal problems. Appropriate remedial actions would be taken to correct any problem.

5.9.3 Reporting A report would be submitted annually describing monitoring results, discussing reclamation problems and identifying remedial measures taken, and documenting reclamation success.

5.10 Reclamation Schedule Concurrent revegetation of temporary or construction roads, soil stockpiles, and surface water control structures would occur as soon as practical following disturbance. After completion of the decline, permanent revegetation would be conducted on portions of the waste dump slope containing sufficient fines to support vegetation. Road cuts and fills would be seeded as an interim measure as soon as practical without interfering with the exploration work.

Once the exploration phase is completed and a decision on full scale mining is made, the nature of the reclamation of the exploration decline site would be determined. If mine development is planned, reclamation of the patio surface would wait until the ore can be removed and run through the mill. If mining is not contemplated, all of the PAG waste would be backfilled into the exploration decline, the portal closed and backfilled, and the patio surface reclaimed as discussed above. Re-grading, soil placement, and revegetation would be completed during the first construction season after a decision on mining is made or following final mine closure. If mine development does proceed, then the exploration decline would be integrated into the overall mine plan.

5.11 Bond Release Once the project is further along in the Amendment approval process and this document has been reviewed by DEQ (all necessary facilities and surface disturbances identified and reclamation plan agreed upon) Tintina would be willing to assist the Small Miners and Exploration Program staff by preparing a draft of a preliminary bond calculation. Tintina would request a bond release once all reclamation activities were complete, and vegetation can be shown to be successfully established over previously disturbed sites.

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6.0 REFERENCES

Chen-Northern, Inc (1989) Sheep Creek Project – Hydrology Screening Study. Prepared for Cominco American Resources Inc. Report dated June 1989. 13 p. cover letter, appendices of data, and a fold out plate.

Department of Natural Resources Information System, 2011. Http://nris.mt.gov. Viewed November 14, 2011.

Elliot, Joe. 2011, Biological Resources report Sheep Creek Project, Meagher County Montana, report prepared for Tintina Resources. 17p plus appendices.

Enviromin and TetraTech, 2012. Baseline Environmental Geochemistry Evaluation: 2012 Black Butte Copper Exploration Decline. October, 2012. Report prepared for Tintina Resources, Inc.

EPA, 1983. Methods for Chemical Analysis of Water and Wastes. EPA-600/14-79-020. Revised March 1983.

Godlewski, D.W., and Zieg, G.A., 1984, Stratigraphy and depositional setting of the Precambrian Newland Limestone, in Hobbs, S.W., ed., The Belt: Abstracts with Summaries, Belt Symposium II, 1983: Montana Bur. of Mines and Geol. Spec. Pub. 90, p. 2-4.

Goodspeed, G.E., 1945, Preliminary report on iron ore deposits the near White SulphurSprings, Meagher County, Montana: U.S. Geol. Survey.**

Himes, M. D., and Petersen, E. U., 1990, Geological and mineralogical characteristics of the Sheep Creek copper-cobalt sediment-hosted stratabound sulfide deposit, Meagher County, Montana, in Hausen, D. M., Halbe, D. N., Petersen, E. U., and Tafuri, W. J., eds.: Metallurgy, Society for Mining.

Hydrometrics, Inc. 2012a, Proposed Decline Hydrological Assessment. Black Butte Copper Project. Report prepared for Tintina Resources, January 2012. 58p. and figures.

Hydrometrics, Inc. 2012b, Tintina Resources Black Butte Copper Project Water Resources Monitoring 2011 Annual Report. Report prepared for Tintina Resources, January 2012. 21p. and figures.

Hydrometrics, Inc. 2011a, Tintina Resources Sheep Creek Project Seep and Spring Inventory. Report prepared for Tintina Resources, July 2011. 8p. and figures.

Hydrometrics, Inc. 2011b, Tintina Resources Black Butte Copper Project Wetland Inventory. Report prepared for Tintina Resources, December 2011. 17p. and figures.

Hydrometrics, Inc., 2010a. 2011 Second Quarter Surface Water Monitoring, Sheep Creek Project, June 2011.

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Hydrometrics, Inc., 2010b. 2011 Third Quarter Surface Water Monitoring, Black Butte Copper Project, October 2011

INAP, 2008, Global Acid Rock Drainage (GARD) Guide, http://www.gardguide.com, accessed 9/2012.

McGoldrick, P., and Zieg, J., 2004, Massive microbes from the Mesoproterozoic of Montana Abs. of oral presentation 17th Australian Geological Convention, Hobart Feb.2004.

Montana Bureau of Mines and Geology (2011). http://mbmggwic.mtech.edu/ Data Website. Viewed June 10, 2011.

Montana Department of Labor & Industry. 2011. Labor Market Info. August 2011 County Labor Force Statistics, Non-Seasonally Adjusted Preliminary. Available online at http://www.ourfactsyourfuture.org/cgi/databrowsing/?PAGEID=4&SUBID=190. Accessed October 3, 2011.

Perkins, W.G., 1984, Mount Isa ‘silica-dolomite’ and copper orebodies; the result of asyntectonic hydrothermal alteration system, Economic Geology, 79, 601-637.

Resource Modeling, Inc . 2010. Sheep Creek Project – Upper Copper Zone Inferred Resource. Prepared for Tintina Alaska Exploration Inc. Report dated December 20, 2010. 81 pp.

National Resource Conservation Service, 2011.

http://websoilsurvey.nrcs.usda.gov/app/WebSoilSurvey.aspx. Web Soil Survey. Viewed April 13, 2011.

Reynolds, M.W., and Brandt, T.R., 2007, Preliminary geologic map of the White Sulphur Springs 30' x 60' quadrangle, Montana: U.S. Geological Survey Open-File Report 2006-1329, scale 1:100,000

Roby, R.N., 1950, Mines and Mineral Deposits (Except Fuels), Meagher County, Montana: U.S. Bur. of Mines Information Circular 7540.

Rohrlach B.D., Fu M. & Clarke J.D.A., 1998, Geological setting, paragenesis and fluid history of the Walford Creek Zn–Pb–Cu–Ag prospect, Mt Isa Basin, Australia*. Geol. Soc. Australia, 45, 63-81.

Tetra Tech, Inc., 2011a. Technical Memorandum: DRAFT – Initial Hydraulic Characterization – Sheep Creek Project, Montana. Submitted to Tintina. August 10, 2011.

Tetra Tech, Inc., 2011b. A Cultural Resource Inventory of 810 Acres in the Black Butte Copper Mine Project Area, Meagher County, Montana. Report Prepared for Tintina Resources, Inc. September 2011. 14p. and appendices.

US Census. 2011a. Meagher County Quick Facts from the US Census Bureau. Meagher County, Montana. Available online at http://quickfacts.census.gov/qfd/states/30/30059.html. Accessed 9/30/2011

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U.S. Department of Commerce. 2011b. Bureau of Economic Analysis, Regional Economic Information System, Washington, D.C. Table CA25N.

Weed, W.H., 1899, Little Belt Mountains, Montana: U.S. Geol. Survey Geological Atlas Folio 56, 11 p.

Western Regional Climate Center, 2011. http://www.wrcc.dri.edu/summary/climsmmt.html. Viewed April 13, 2011.

Winston, D., 1986, Sedimentation and tectonics of the Middle Proterozoic Belt basin, and their influence on Phanerozoic compression and extension in and northern Idaho, in Peterson, J., ed., Paleotectonics and sedimentation in the Rocky Mountain Region, : AAPG Memoir 41, Pt. II, p. 87-118.

Zieg, G.A., 1986, Stratigraphy and sedimentology of the Middle Proterozoic upper Newland Limestone: in S. Roberts, (ed.) Belt Supergroup, A Guide to the Proterozoic Rocks of Western Montana and Adjacent Areas: Montana Bureau of Mines and Geology Special Publication 94, p. 125-141.

Zieg, G.A., Rankin, P.W., Hall, S.M., and Tureck-Schwartz, K.R., 1991, The geology of the Sheep Creek Proterozoic copper deposits, central Montana: SME-AIME preprint, Rocky Mountain Section, Denver Meeting, February, 1991.

Zieg, G.A., and Leitch, Craig H.G., 1993, The Geology of the Sheep Creek Copper Deposits, Meagher County, Montana: in Belt Symposium III Abstracts, Richard B. Berg, compiler, Montana Bureau of Mines and Geology Open-File report 381, 69 p. This is a companion volume to the following: Belt Symposium III, Montana Bureau of Mines and Geology Special Publication 112, 294 p

Zieg, G.A., 1992, Comparison between the Mount Isa Cu-Pb-Zn-Ag deposits, Queensland, Australia, and the Sheep Creek Cu-Fe-Zn-Pb-Ag mineralization, Meagher County, central Montana: in-house file note, Cominco American Resources Inc., Spokane, Washington, 35 p.**

Zieg, G.A., 1981, Stratigraphy, sedimentology, and diagenesis of the Precambrian upper Newland Limestone, central Montana: M.S. thesis, University of Montana, Missoula, 182 p.

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APPENDIX A

AIR QUALITY MONITORING REPORT/DATA

(through second quarter of 2012)

APPENDIX B

BASELINE WATER RESOURCE MONITORING REPORT /DATA

(through third quarter of 2012)

APPENDIX C

WETLAND SURVEY REPORT/DATA

APPENDIX D

HYDROLOGIC ASSESSMENT OF PROPOSED EXPLORATION DECLINE

APPENDIX E

SOIL INFILTRATION DATA

APPENDIX F

BASELINEENVIRONMENTAL GEOCHEMISTRY EVALUATION REPORT /DATA

APPENDIX G

BIOLOGICAL RESOURCES REPORT

APPENDIX H

CULTURAL RESOURCES REPORT

(Montana Cultural Resource Information System Forms have been removed from this report. Figure 1.1 has been replaced by a modified figure.)