Southwest Ground-water Consultants, Inc.

MEMORANDUM

February 15,2012

To: Justin B. MetTitt, Southwest Value Partners

From: Stephen D. Noel, R.G., Kevin Hebert, R.G., Southwest Ground-water Consultants, Inc.

Subject: INFORMATION PERTAINING TO THE ALERT LEVEL EXCEEDANCE FOR SULFATE - CURlS RESOURCES, INC. UNDERGROUND INJECTION CONTROL PERMIT NO. AZ396000001

Southwest Ground-water Consultants, Inc. (SGC) has prepared the following discussion regarding the recent alert level (AL) exceedance of sulfate reported by Curis Resources, Inc. (Curis) in their 5-day notification report to the EPA dated January 23, 2012. This summary is provided to highlight the magnitude and potential significance of this exceedance, and to refute the explanations provided by Curis in their report.

As part of a required quarterly monitoring program, Curis collected a sample from monitor well P49-0 on December 5, 2011. Review of the laboratory results indicated that the established ALs for magnesium (Mg), total dissolved solids (IDS), and sulfate (S04) were significantly exceeded during that sampling event. Curis collected a follow sample from well P49-0 on January 4, 2012 and the previous results were confirmed. The results of those analyses, as well as the mean values of 16 rounds of sampling previously conducted at this well are shown in the following table.

P49-0 Ground-water Monitoring Results

Sample Date Magnesium Sulfate Fluoride IDS (mg/L) (mg/L) (mg/L) (mg/L)

I 996-I 998 1 3.62 1022 0.952 4722

12/5/ 11 15 1,280 NP 2,000

0114112 15 1,320 <0.4 2,000

Alert Level 6.2 181 1.9 801 , ) -1996-1998 - 12 samples were collected m 1996 and four samples were collected from 1997 to 1998.

3.62 = Results shown are mean values of the 16 sample results collected from 1996-1998.

Nl3 = Data not included. Bold = Result is greater than the established Alert Level.

Results of initial sampling (12 rounds) conducted at this well in 1996 prior to the in-situ pilot test, and sampling conducted in 1997 and 1998 show concentrations of sulfate, magnesium, and TDS that are orders of magnitude less than the results shown above. It was these values that

3033 N. 44th Street, Suite 120 Phoenix, Arizona 85018 (602) 955-5547 Fax (602) 955-7585

1 Phoenix, Arizona Prescott, Arizona

SWVP-016051

were used to determine the AL for the indicator parameters. The mean concentration of sulfate from those sampling events (1 02 mg/L) is roughly 13 times less than the confirmation sampling result recently measured. A copy of a data table summarizing the laboratory results of the previous sampling is included as Attachment 1.

A review of infonnation pertaining to well P49-0 indicates that the well is perforated exclusively within the oxide zone. P49-0 is located near the southwest corner of the in-situ copper recovery (ISCR) area, which is also where the steep contact between the lower basin fill unit (LBFU) and oxide zone exists. A figure showing the location of well P49-0 is included in Attachment 2. Diagrams and other information relating to the design, construction, and lithology of and encountered in well P49-0 are included in Attachment 3.

Curis attempts to dismiss the AL exceedances as not being related to the previous pilot test and recommends that no further action be taken. A brief summary of Curis' explanations and our response is provided below.

• "Under prevailing conditions, P49-0 is a cross-gradient, background well to the pilot test area. Since the facility is inactive, the increased concentrations are not believed to be related to permitted mining operations. The remaining indicator parameter, fluoride, decreased sign[ficantly, which is counter-indicative of an impact "

A ground-water contour map prepared by Brown and Caldwell for October 2008 shows well P49-0 located in a relatively down gradient location from the pilot test area. This information, as well as knowledge that the Oxide zone is highly fractured does not dispel the notion that the AL exceedances could not have been related to the permitted mining operations. A copy of the contour map for October 2008 is included in Attachment 2.

Secondly, pre-pilot tests for fluoride ranged from 0.29 to 1.3 mg/L (Attachment 1 ). The most current analysis (confirmation sample) shows a non-detect level of <0.4 mg/L. This result can hardly be described as a significant decrease.

• "The increases in concentrations in P49-0 appear to be an aflect of the low flow sampling methodology. The low-:fhJ'rtl pump may be collecting the water sample from a distinct portion ol the aqu[ler zone with higher concentrations which become diluted performing a typical three borehole volume purge. The concentrations are in fact similar to the ranges observed in nearby well M24-0 for pre-mining, ambient conditions. Since the observed changes in concentrations are not believed to be related to the permitted activities, we believe no further action is required.

It is difficult to believe that the type of pumping system could affect a change as drastic as is being shown here, which would in essence negate all of the ground-water data collected historically for the site. If Curis believes this point, they should re-sample the well under the exact conditions as the pre-pilot test for comparison purposes. In addition, Curis should be required to perform discrete, zone specific sampling throughout the perforated interval of the well to investigate where the high sulfate concentrations are emanating.

The Curis attempt to make a comparison of these data to the data collected at well M24-0 is also not valid. Well M24-0 is located approximately 1,200 feet away from P49-0 and is apparently perforated in a different geologic unit because data for this well are used to prepare contours for the lower basin fill unit as opposed to the oxide zone (see the figure provided in Attachment 2). It is also disingenuous for Curis to claim that the higher concentrations detected in well M24-0

2

SWVP-016052

are representative of "pre-mining. ambient conditions" since we know that this area is directly down gradient of the underground mining shafts and cross cuts from the historical mining activities that occurred in the 1960's-1970's.

• "The APP requires that monitoring.f1·equency qlP49-0 be increased to monthlyfor the quarterly indicator parameters. Based on the analysis provided, we are requesting to resume quarterly monitoringfor both well P49-0 and Ml-GL ".

In addition to denying Curis request that the requirement for monthly monitoring be waived, it is our opinion that further investigation, in addition to the monthly monitoring, be performed to identify the source of the elevated concentrations of sulfate, magnesium, and TDS.

3 e SWVP-016053

ATTACHMENT 1

Ambient Laboratory Data (P49-0)

SWVP-016054

;-

l_

[ Table 1. Alert Levels for Common Ions and pH

0 D

P49-0 Well

Analyte I Mg 1 S04 -l F TDS I pH 1----~-,:.....,.---f--,...........:::,_-l-~.....,--+--,----!---·---------·-

(units) I (mgll) I (mg/1) , ·- (mg/1) 1. (mg/1) I (S.U.) Sample Date l I I

~~~-:; -------+·-- ·:-------1-----l-----+-----! ! ..

0 I I I ---·-

I I !

_ ___ A-o-u--"'g--9...,5_ I Sep-95 ' Oct-95 ,

0 -------=-~~-~-=-~--=-; _____ .L----·~--+-1 ---1------_L _ ____ _

Jan-96 3.8* 1 120* _j_ o:29*_I_5w ___ L __ 6~~-Feb-96 ! 4.1* 1 110" ! 0.83* I 490* 7.3

0 0 0 0

Mar-96 3.8" : 110* 0.99* 480* 7.3 Apr-96 3.6• I 100; --'-; _.:..:.1-.1-* _.J.I_SO.c..::..c..O_* -!..l_7c...:..2.::.._.-j

May-96 3.8 I 110 1 1.1 500 7.4

I 110 -~~'-'--+-~~-+-'-'--!

Jun-96 I 3.6 0.85 490 7.6 1---- --=:J=,ul,:....,-967------+-i ---;3:.:.:.7::---+l -..:..11~0- I 1.0 460 7.4

------=:A;.:::.u.!:!..g-~9-:,.6 --~--=-=3.-:,.8_,_1 ___;1..:..1 0::---+1._~0=-~·8=::8=--~1_ 480 7. 7 1-----S-'-"'ep-'-9-'-6 ____ .._' _ 3.:.....7 _ __,_1 _ _ 11_0_+-- 1.0 I 500 7 .7

NDooec~~96--- - -----±_-=_;3_:..:.:·.~4;::.... __ ·_-~--+!_~----~~~~~--i-~o~:.;:.~.,--+l - ....::jb-···· ··-··{f----·j-·- 100 1.0 480 7.8

Jan-97 ·--i 1----.,....;-......,....,-----'i----...;------·- ----+----!----­

Feb-97 98 r---1.3 ___ --4=7-=-o ----!~---=-7.-=-7 ----J Mar-97 3.4 I

0 0 0

1-----:-A-:r-pr-97 I 1 May-97 I I 1 ·-~'-----

1------'-J-c'-u-'-n--97- --·---.. r·-··--·---r l---+----1 Jul-97 1 .. -··--··-=-· i Aug-97 i ~---=~=·_""'"..1_·-_ - --+----+----1

Nov-97 3 .6 I, 100 L . ..9.~1_46.c.c.::O_+----I oec-97 r Jan-98 3 .3 i 98 r-o. 76 -r-46o

I----M'-a-~9-8----~'-'-~'-1---[=~~-~-+-_..:...::.._-+----i

r---1-----A-"-pr_-9:,.:8 ___ ~ _ _:3:._. 7 ___

1 ____ 71'--·-f-- 0..:....·..:..86.::.._-+---------L.----<

May-98 I 1 ·-r-·- , 1

0 0

! 3.57 I 102 I o.949 Mean

f..:S:..:.:ta=,n==d=ar-=-d -=-D-=-ev:,.:..ia7r:..::.lo..:..n ,--·-+-1 -:0=..:·,..:,18::.:=:3 ] __ ~_j__.Q:_~..::5_5:::--+-,..==::..=..,..-+-....==.=::::,:....,-~ Coefficient of Variation ~-~~~---t-__Q~!!Q_-1---=-0'-. 1..:....63"---.f-...':..:...:..::-=-=--J-...::..:..::.=.:..:..-I

i 4 .6 i 168 I 1.9

Levell Aiert Level (upper) Adjusted AL (upper)

lJ

0 Levelll _j I I ~A'-Ie-'rt-L-ev_e_l_(u-ppe-r)____ ~-----.i-9 __ _,_ 1-1-B4---+---2.-1--l------+----~~ Adjusted AL (upper) : 6.2_1 __ ...:.::..:..__fl- -=:..:.. _ _ !---=...::.:::_--l-,...........:::..:=..._,

Alert Level (lower) I I I

0 0

Tabel1 Page30 of32 9/15/98

SWVP-016055

ATTACHMENT 2

Contour map

SWVP-016056

Brown AND

Caldwell

UPPER BASIN FILL UNIT

P:\Hunter Dickinson\Curis GIS\MXDs\G13B799008.mxd 5/18/2010

LOWER BASIN FILL UNIT

OXIDE ZONE

' .

l . ' ·,'

0 500 1,000

I I SCALE IN FEET

EXPLANATION

-$ WATER LEVEL DATA POINT

GROUNDWATER ELEVATION CONTOUR

·=· MINE AREA

c--~ MINE BLOCK

+-- GROUNDWATER FLOW DIRECTION

Figure 2 OCTOBER 2008

GROUNDWATER ELEVATIONS

CURlS RESOURCES (ARIZONA) INC. FLORENCE, ARIZONA

SWVP-016057

ATTACHMENT 3

P49-0 Well Information

SWVP-016058

"' "' I

0 ' ~

w A

( 1 36.99)~

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CJ) CJ) CJ)

""" """ """ 0 0 Q_

~(1 34 . 75) ~ (1 47.47)

E A'

SIMPLIFIED EAST-WEST CROSS SECTION Approx imate Scole: Vert ica l : 1 " = 300'

N 744193.985 E 647477. 364

Horizontal: 1 "= 150'

N 744195.289 E 647517.192

WELL PLAN VIEW

N 744202.707 [ 647611.871

Approximate Scale: 1''= 300'

BROWN AND CALDWELL

_)fJ N i1/~

EXPLANATION POTEN TIOMETRIC (151.00) ~ SURFACE

(SHOWN IN FEET BELOW GROUND SURF ACE)

WELL PREFIXES PUMPED WELL P MONITOR WELL M OBSERVATION WELL 0

WELL SUFFIXES ( AQUIFER COMPONENT SCREEN)

BASIN FILL GU BA~N ~LL GL OXIDE BEDROCK 0 SULFIDE BEDROCK S

FEET BELOW GROUND SURFACE

-

\ --== SCREENED

' ' '

== IN TERVAL 890-

I ---r, t I d I I I

: -' : I _ _ ___ L _ ___ _:_ ~

--- -~ -- 1- --- - ... t --- --- -- -t ----- ---- ~ l .. - ...... - --~ .... - -: I : : if : I I I I ).. _____ ,

: I : ! : t: : I : : : I ~ ; I : : : I :

----.. .. ,... .... .... ---· - .. ----- - -~-- - .. -.. --- ,. .. - .. --.. .. t .... ----: ~- ' ' ' r - J ' ~ ~ I i : : l : I I I I I t I : \ : : : // :

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: : ' ' ' ' : l ' '

WELL LOCATION MAP Approximate Scale: 1 "= 2000'

Figure E-1 0 (II) LOCATION SUMMARY

AQUIFER TEST CLUSTER 49

MAGMA COPPER COMPANY Florence, Arizona

SWVP-016059

Table B-4. Summary of Information Concerning Existing Wells Within One-Half Mile of the Florence In-Situ Mine Area

Location Well Coordinates

Correlation Well Location/ (Northing WeliiD* Tables• Type ADWR No."* Easting)

D(4-9)28ddb 745652.04N 028. 1-0 B1 Monitor 55-547803 65 1027.87E

D(4-9)28ddb 74562J.06N 028.2-S B1 Monitor 55-547804 6511 23.95E

D(4-9)28ddb 745535.76N P28-GL B1 Test 55-547807 651085.74E

D( 4-9)28ddb 745558.54N P28.1 -0 Bl Test 55-547802 650998.31E

D(4-9)28ddb 745516.17N P28.2-0 81 Test 55-547806 651118.23E

D( 4-9)28bcd 744220.52N

039-0 B l Monitor 55-549174 649098.12E

D(4-9)28bcd 744102.51N

P39-0 Bl Test 55-549176 649102.65E

D(4-9)33bba 744 195.29N

049-0 81 Monitor 549179 647517. 19E

D( 4-9)33bba 744 193.98N

049-GL 81 Monitor 55-549180 647477.36E

D( 4-9)33bba 744202.71N

P49-0 Bl Test 55-54918 1 6476 1 J.87E ---

'The following are other tables which correlate with wells listed in the table. Cl, C2: Existing water quality data, Appendix C, Volume II

· Bl, B2, 83: Water level data, Appendix B, Volume II · 85, Well data included in Montgomery and Associates (1994)

bFeet above mean sea level (MSL) •Feel below ground surface

Land Elevation

(feet)b

1464.6

1464.8

1465

1464.9

1465.4

1463.1

1461.7

1461.8

1461.2

1461.8

Reference Point Total Screened

Elevation Depth Casing Interval Screened (feet)b (feet)' Diameter (feet)' Zone

1465.76 530 4";0-514 395-494 0

1465.54 510 4";0-495 454-494 s

1466.48 320 5";0-309 279-309 G

1466.48 520 6";0-509 399-499 0

1466.68 519 6";0-507 398-497 0

1464.29 916 5";0-910 474-890 0

1462.85 915 6";0-847 471-826 0

832-1462.69 1280 4";0-1247 1227.5 0

1462.08 740 5";0-730 661-721 G

1463.12 1288 6";0-1242.5 808-1222 0

Top of Bedrock Date Well

(feet)' Installed Owner Condition/Remarks

1.5-fooL LCS casiug s tickup. Aquifer test performed 8/95,

368 6-21-95 Magma 9195.

1 .5-foot LCS casing s tickup. Aquifer tesL performed 8/95,

340 6-19-95 Magma 9/95.

1.5-foot LCS casing s tickup. Aquifer test performed 8/95,

NA 6-30-95 Magma 9195 .

1.5-foot LCS casing stickup. Aquifer test performed 8/95,

360 7-2-95 Magma 9195.

1.5-foot LCS casing stickup. Aquifer test performed 8/95,

335 6-29-95 Magma 9/95.

1.6-foot LCS casing stickup. 380 5-7-95 Magma Aquifer test performed 5195.

2.0-foot PVC casing stickup. 380 5-10-95 Magma Aquifer test performed 5/95.

810 6-6-95 Magma ! -foot PVC cusing stickup.

NA 6- 15-95 Magma 1.1-foot PVC casing s tickup.

770 5-24-95 Magma .9-foot LCS casing stickup.

• The well 10 listed first identifies the well name most commonly used with respect to documentation and wen recognition. Any other names found for a particular wen are also listed as a reference. •• The correct well identification is based on location and is listed first followed by all other numbers referenced to that well as found in various reports and documeniS.

magma.Oolfinal.app\volume.2\oppendix.bltableb-4.wp5\0!0596\rbb II

I

SWVP-016060

Table B-1. Summary of Current Investigation Water Level Data

Surface Northing/ Elevation Measuring Pojnt Well Depth

Well Location WeiiiD Easting (feet)a Elevation (feet)a (fect)b

743799.85/ D(4-9)33bac MI-GL 648550.02 1,461.10 1,462.40 365.00

743800.82/ D(4-9)33bac M I8-GU 648501.52 1,461.00 1,461.75 227.60

744193.99/

~(4-9)33bba 049-GL 647477.36 1,461.20 1,462.08 73Q.42

744195.29/ D(4-9)33bba 049-0 647517.19 1,461.80 1,462.69 1,247.30

744202.71/ D(4-9)33bba P49-0 647611.87 1,461.80 1,463.12 . 1,242.51

----

See Sheets 1.2-1 (II) and 1.2-2(11) for well locations, and Appendix B (II) for additional well information.

'Feet above mean sea level (msl)

bFeet below ground surface (bgs) s:lrnagma.Oo\llnat .app\volume.2\appendix.b\ T ABLEB· I.XLS\ 1/9/96\sbb 17

Depth to Water Water Elevation (fect)b (feet)a Date Measured

114.44 1,342.16 October 05, 1995

11 0.80 1,345.80 November 08, 1995

109.47 1,347. 13 December II , 1996

135.99 1,327.05 July 01, 1995

135.38 1,327.66 August 01, 1995 .

128.89 1,334.15 September 05, 1995

125.28 1,337.76 October 05, 1995

119.40 1,343.64 November 08, 1995

110.47 1,351.93 December 11 , 1996

117.33 1,345.22 July 01, 1995

135.90 1,326.65 August 01, 1995

120.29 1,342.26 September 05, 1995

118.00 1,344.55 October 05, 1995

11 5.47 1,347.08 November 08, 1995

107.90 1,353.85 December 11, 1996

152.20 1,309.88 August 0 I, 1995

136.99 1,325.09 September 05, 1995

140.25 1,321.83 October 05, 1995

124.34 1,337. 74 November 08, 1995

123.03 1,339.05 December II, 1996

147.15 1,315.54 August 01, 1995

134.75 1,327.94 September 05, 1995

131.60 1,331.09 October 05, 1995

124.17 1,338.52 November 08, 1995

121.00 1,341.69 December 11, 1996

147.47 1,315.65 August 01, 1995

135.00 1,328. 12 September 05, 1995

SWVP-016061

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<lo\>t>~~ (S~J GRIWELLI SIIND poor l y conso l 1doted. gr oy1sh, orange p tnk, subongu l or tqfoo to subrounded, medtum to very coarse grove I I ZD%1. 'to I em . quartz, <7o\>t>1~ f'e I dspor, pI og 1 oc I ose, and mof' IC c lasis . tqfoG <Zo\>t>~~ oPoQ"

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SWVP-016062

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[NCH X 2.5 TT LOCKABLE STEEL VAULT AT SURrACE INCH X J FT SQUARE CONCRETE PAD AT SURFACE

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INCH LCS CONOUCiOR C~SJNGC 0 20 f1l

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SWVP-016063

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- 80 I

-85 )

-90 I

-95 I

- 100 I

- 105 I

- 1100 I

- 115 I

I -1200

I -1250

rfJ '""

[1m!

~

"'"

DESCRIPTIVE L OG

Recenl Allu>Aum

Upper ao,., Fill Unit

Niddle F-.,e- Q-olncCI UnTt

lower 9osJn Flll Unit

Quartz ~onzonrte: Porphyry

ronod•or e or h

Quar tz t.lonzooite f'orph)'l"y

Gronodlorile Porphyy

··-

. :!! 0

~ c

~

- 150

-200

-250

-JOO

- 3!>0

-~00

- '150

-500

-::;--550

.. ~ -600 ~

:5 -650

g. -700 0

- 750

- 800

- 850

-900

-950

- 1000

-10!>0

-1100

- 11!>0

-1200

-1250

GAMMA- RAY LOG

(API UNITS)

~ 8 "' I

l l I

! I

: ' i

I !

I

!

!

'

I l ! ' !

NEUTRON LOG

(API UNITS)

0 0 0 8 0 0

0 ~ "' " " "' - N 0

-so - 100

- 150

-200

- 250

-JOO

-350

-~

-450

-500

-:::- - 5!>0

] - 600 ~

.c -650

g. - 700 Cl

-750

-800

-850

- 900

-950

- 1000

-1050

-1100

-1150

- 1200

- 1250

RESISTIVITY, GAMMA-RAY AND NEU TJlON L OGS FOR.

BOREHOLE P~9-0

I11AEii'M NAOMA COPPER CONPANY ,en,.... Altun•

SWVP-016064