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H:\Files\TGOLD\11048\2011 Annual Rpt Wtr Mtrg\R12 Wtr Resources Mtrg Rpt.Doc\\1/27/12\065 1/27/12\1:09 PM WATER RESOURCES MONITORING 2011 ANNUAL REPORT BLACK BUTTE COPPER PROJECT Prepared for: Tintina Resources Suite 1723 - 595 Burrard Street Vancouver, BC, Canada V7X1G4 Prepared by: Hydrometrics, Inc. 3020 Bozeman Avenue Helena, MT 59601 January 2012

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  • H:\Files\TGOLD\11048\2011 Annual Rpt Wtr Mtrg\R12 Wtr Resources Mtrg Rpt.Doc\\1/27/12\065 1/27/12\1:09 PM

    WATER RESOURCES MONITORING

    2011 ANNUAL REPORT

    BLACK BUTTE COPPER PROJECT

    Prepared for:

    Tintina Resources Suite 1723 - 595 Burrard Street

    Vancouver, BC, Canada V7X1G4

    Prepared by:

    Hydrometrics, Inc. 3020 Bozeman Avenue

    Helena, MT 59601

    January 2012

  • H:\Files\TGOLD\11048\2011 Annual Rpt Wtr Mtrg\R12 Wtr Resources Mtrg Rpt.Doc\\1/27/12\065 ii 1/27/12\1:09 PM

    TABLE OF CONTENTS

    LIST OF TABLES...........................................................................................................ii

    LIST OF FIGURES .........................................................................................................ii

    1.0 INTRODUCTION .....................................................................................................1-1

    2.0 SURFACE WATER ..................................................................................................2-1

    2.1 MONITORING SUMMARY ........................................................................2-1

    2.2 RESULTS ......................................................................................................2-3

    3.0 GROUNDWATER ....................................................................................................3-1

    3.1 MONITORING SUMMARY ........................................................................3-1

    3.2 RESULTS ......................................................................................................3-1

    4.0 DISCUSSION............................................................................................................4-1

    5.0 REFERENCES ..........................................................................................................5-1

    LIST OF TABLES

    TABLE 1. ANALYTICAL METHODS AND DETECTION LIMITS FOR

    SURFACE WATER AND GROUNDWATER SAMPLES.................1-3

    TABLE 2. SURFACE WATER FLOW DATA...........................................................2-4

    TABLE 3. MAY 2011 SURFACE WATER QUALITY RESULTS...........................2-5

    TABLE 4. AUGUST 2011 SURFACE WATER QUALITY RESULTS ....................2-6

    TABLE 5. NOVEMBER 2011 SURFACE WATER QUALITY RESULTS..............2-7

    TABLE 6. WELL COMPLETION DETAILS.............................................................3-3

    TABLE 7. 2011 GROUNDWATER QUALITY RESULTS .......................................3-4

    LIST OF FIGURES

    FIGURE 1. PROJECT LOCATION.........................................................................1-2

    FIGURE 2. GROUNDWATER AND SURFACE WATER MONITORING

    LOCATIONS ........................................................................................2-2

    FIGURE 3. NOVEMBER 2011 POTENTIOMETRIC SURFACE.........................3-2

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    WATER RESOURCES MONITORING

    2011 ANNUAL REPORT

    BLACK BUTTE COPPER PROJECT

    1.0 INTRODUCTION

    Hydrometrics conducted the groundwater and surface water monitoring for the Black Butte

    Copper Project during the second (surface water only), third and fourth quarter of 2011. The

    Black Butte Copper Project is located approximately 16 miles north of White Sulphur

    Springs, Montana in Meagher County (Figure 1). The groundwater and surface water

    monitoring will be used to establish baseline flows, water level elevations, and water quality

    in the vicinity of the project area.

    Groundwater and surface water monitoring was conducted in accordance with Hydrometrics

    SOPs as described in the quarterly monitoring reports (Hydrometrics, 2010a and 2010b).

    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 1. 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 the groundwater and surface

    water monitoring conducted in 2011.

  • _̂Project AreaHelenaMissoula

    Billings

    Great FallsLEGENDProject Area

    o

    0 2.5 51.25Miles

    FIGURE1PROJECT LOCATIONTintina ResourcesBlack Butte Copper ProjectMeagher County, Montana

    V:\11048\GIS\Decline Inflow Assessment\Fig. 1 Project Area.mxd

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    TABLE 1. ANALYTICAL METHODS AND DETECTION LIMITS FOR

    SURFACE WATER AND GROUNDWATER SAMPLES

    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

    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)

    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 to be analyzed for dissolved constituents will be field-filtered through a 0.45 μm filter.

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    2.0 SURFACE WATER

    2.1 MONITORING SUMMARY

    The project site lies within the Sheep Creek drainage. 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. Sheep Creek flows in a

    meandering channel through a broad alluvial valley upstream of the project site but enters a

    constricted bedrock canyon just downstream.

    Primary tributaries to Sheep Creek in the immediate project area are Little Sheep Creek, and

    Coon Creek (Figure 2). There are also two un-named tributaries that collect flow from the

    far side of the valley (to the northeast) and discharge to Sheep Creek immediately upstream

    and downstream of Strawberry Butte. Black Butte Creek lies just to the west of the project

    area and discharges to Sheep Creek further downstream. Flow in the tributary drainages is

    only perennial on their lower reaches and ephemeral upstream.

    Eleven surface water stations have been established for baseline monitoring sites. Flow and

    stage measurements are monitored quarterly at all of these sites as well as field parameters

    (temperature, pH and SC). Water quality samples are collected at six of the sites during

    quarterly monitoring. Flow and water quality monitoring locations are shown on Figure 2.

    Monitoring was initiated at these sites in May of 2011 with subsequent sampling rounds in

    August and November of 2011.

    In addition to November scheduled surface water monitoring, synoptic monitoring was

    conducted on Sheep Creek in the vicinity of Strawberry Butte to help establish the interaction

    between groundwater and surface water in the area adjacent to the proposed exploration adit.

    The synoptic monitoring consisted of measuring flows on Sheep Creek, and all tributaries in

    the vicinity (Figure 2). The cold weather during the monitoring event caused ice to form on

    the creek and its tributaries, with some having ice across the full reach of the stream. The ice

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    SW-9

    SW-7

    SW-4

    SW-8

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    SW-5

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    SW-3

    SW-2

    SW-1

    SW-11

    LEGEND!( SW Sites - FlowP SW Sites - Flow/WQ#* Stream Gaging Sites` Springs@? Groundwater Monitoring Site

    o0 2,200 4,400FeetK:\PROJECT\11048\GIS\SW Monitoring Sites_Rev.mxd

    Tintina ResourcesBlack Butte Copper ProjectMeagher County, MontanaGROUNDWATER AND SURFACE WATER MONITORING SITES 2

    FIGURE

  • H:\Files\TGOLD\11048\2011 Annual Rpt Wtr Mtrg\R12 Wtr Resources Mtrg Rpt.Doc\\1/27/12\065 2-3 1/27/12\1:09 PM

    was broken out upstream and downstream of the monitoring site and flows were taken after

    the stream appeared to stabilize. Although steps were taken to collect the best possible flow

    measurements, the conditions were less than ideal and the error in the measurement methods

    is assumed to be at least 10%.

    2.2 RESULTS

    During the baseline study period, discharge in Sheep Creek ranged from approximately 21 to

    250 cfs at the upstream site and 21 to 650 cfs at the downstream site. Base flow in Butte

    Creek was approximately 0.4 cfs. Flow monitoring results for each of the monitoring sites is

    summarized in Table 2. Most of the increase in discharge from upstream to downstream in

    Sheep Creek appeared to be accounted for by tributary inflows. Little Sheep Creek

    contributed approximately 1 cfs to Sheep Creek during the late season (November)

    monitoring event, while Coon Creek discharged only 0.11 cfs. The unnamed tributaries

    entering Sheep Creek from the northeast each contributed approximately 0.5 cfs. Tributaries

    to Sheep Creek in the synoptic monitoring area contribute approximately 2 cfs to the

    discharge in Sheep Creek during base flow. Discharge in Sheep Creek at the site southeast

    of Strawberry Butte was approximately 20.3 cfs and discharge at SW-1 (downgradient) was

    20.7. With tributary discharge contributing 2 cfs it appears that Sheep Creek is losing

    approximately 1.6 cfs; however this is within the method error. The topography in the

    vicinity of the synoptic monitoring, where Sheep meanders through a meadow and then

    enters a canyon after it turns to the north, suggests groundwater would discharge to Sheep

    Creek in this area. Based on this assumption and the conditions during the synoptic

    monitoring, it would be beneficial to conduct additional synoptic monitoring to provide

    additional information on the groundwater/surface water interaction in the project area.

    Surface water quality sampling was conducted in May (six locations), August (five

    locations), and November (five locations) 2011. Tables 3, 4, and 5 summarize the water

    quality data for the each surface water-monitoring event. Field parameter measurements

    were obtained at an additional five locations. Surface water sites exhibit neutral to slightly

    alkaline pH values (7.0 to 8.6), and low to moderate specific conductance (55 to 420

  • May-11 Aug-11 Nov-11

    SW-1 Sheep Creek - Downgradient site; at bridge on county road 119 612 34 20.7

    SW-2Sheep Creek - Upgradient site; Highway 89 right away approximately 0.6 miles east of county road intersection 250 30 20.7

    SW-3Coon Ck - Trib. to Sheep Creek - at intersection of county road 119 and forest service road. 4.9 0.34 0.113

    SW-4 Coon Ck. - approximately 0.6 miles southwest of Co. Rd/USFS Rd intersection 2 0.04 0.03

    SW-5Unnamed Trib. To Butte Creek - West of Moose Pass, where jeep trail crosses drainage. 4.7 DRY DRY

    SW-6Unnamed Trib to Little Sheep Creek - approximately 0.25 miles south of county road. 4.1 0.18 0.16

    SW-7Unnamed Trib to Little Sheep Creek - Upgradient site, approximately 1 mile upgradient of SW-6. 0.286 0.01 Frozen

    SW-8 Little Sheep Creek - Approximately 0.5 miles from Highway 89. 9.1 0.45 FrozenSW-9 Butte Creek - at USFS road crossing. 12.7 0.83 0.42SW-10 Butte Creek - approximately 0.7 miles upstream of SW-9. 15.2 0.5 Frozen

    SW-11Butte Creek - Downgradient of confluence with Unnamed Trib to Butte Creek (west of Moose Pass). 21.4 0.86 Frozen

    SG-1 Little Sheep Creek - Upgradient of confluence with SW-6 drainage -- -- 0.27SG-2 Gravel Pit Outfall -- -- 0.49SG-3 Little Sheep Creek - Downgradient of county road 119 culvert. -- -- 0.93SG-4 Sheep Creek south of Strawberry Butte. -- -- 20.28SG-5 Unnamed Spring Creek south of Strawberry Butte. -- -- 0.47SG-6

    Unnamed Spring Creek northwest of Strawberry Butte. -- -- 0.5

    Stream Gaging Sites

    TABLE 2. SURFACE WATER FLOW DATA

    Site Code Location (cfs)

    Tabel 2_SW Flow summary table.xls 1/27/20121:21 PM

  • Site Code SW-1 SW-1 DUP SW-2 SW-3 SW-4 SW-5 SW-6 SW-7 SW-8 SW-9 SW-10 SW-11Human Health

    Standard

    Aquatic Standard (Chronic)

    FIELD PARAMETERSFlow (CFS) 612 -- 250 4.9 2 4.7 4.1 0.286 9.1 12.7 15.2 21.4 -- --pH (s.u.) 7.59 -- 7.09 8.02 7.99 7.53 8.21 7.73 8.01 8.15 8.25 8.1 -- --Specific Conductance (µmhos/cm) 181 -- 156 269 296 55 341 359 319 376 353 338 -- --Temperature (C) 4.5 -- 3.2 7.1 10.4 7.8 12.3 5.2 13.9 6.4 6.4 6.2 -- --Dissolved Oxygen (mg/L) 10.25 -- 10.9 9.7 9.78 9.38 9.44 10.04 8.05 11.07 10.62 10.34 -- --GENERAL PARAMETERSTotal Dissolved Solids 118 104 117 152 -- 86 189 -- -- -- -- 200 -- --COMMON IONS (mg/L) Alkalinity as CaCO3 87 87 80 150 -- 27 190 -- -- -- -- 180 -- --Carbonate < 1.0 < 1.0 < 1.0 2 -- < 1.0 4 -- -- -- -- 4 -- --Sulfate 2 2 2 5 -- < 1.0 6 -- -- -- -- 9 -- --Chloride 1 1 1 < 1.0 -- < 1.0 < 1.0 -- -- -- -- 1 -- --Fluoride < 0.1 < 0.1 0.4 0.1 -- < 0.1 0.1 -- -- -- -- 0.1 4 --Calcium 23 22 21 31 -- 7 39 -- -- -- -- 42 -- --Magnesium 6 6 5 15 -- 2 15 -- -- -- -- 17 -- --Sodium 1 1 1 2 -- 1 2 -- -- -- -- 2 -- --Potassium 1 1 1 1 -- 2

  • Site Code SW-1 SW-2 SW-2 DUP SW-3 SW-4 SW-5 SW-6 SW-7 SW-8 SW-9 SW-10 SW-11Human Health

    Standard

    Aquatic Standard (Chronic)

    FIELD PARAMETERSFlow (CFS) 34.26 29.77 -- 0.34 0.04 DRY 0.18 0.04 0.45 0.83 0.5 0.86 -- --pH (s.u.) 8.43 8.39 -- 8.35 8.22 -- 8.2 7.81 8.06 8.21 8.48 8.31 -- --Specific Conductance (µmhos/cm) 317 322 -- 366 361 -- 392 397 418 406 401 394 -- --Temperature (C) 12.85 13.2 -- 12.1 12.67 -- 15.94 10.7 8.23 10.8 15.38 12.1 -- --Dissolved Oxygen (mg/L) 10.45 10.54 -- 10.8 9.62 -- 8.55 10.13 10.06 10.61 9.81 10.32 -- --GENERAL PARAMETERSTotal Dissolved Solids 182 182 180 212 -- -- 228 -- -- -- -- 236 -- --COMMON IONS (mg/L) Alkalinity as CaCO3 170 180 180 210 -- -- 220 -- -- -- -- 220 -- --Bicarbonate as HCO3 200 200 200 240 -- -- 250 -- -- -- -- 260 -- --Carbonate 8 7 7 6 -- -- 7 -- -- -- -- 7 -- --Sulfate 4 4 4 10 -- -- 7 -- -- -- -- 10 -- --Chloride 1 1 1 1 -- --

  • Site Code SW-1 SW-2 SW-3 SW-4 SW-5 SW-6 SW-6 DUP SW-7 SW-8 SW-9 SW-10 SW-11Human Health

    Standard

    Aquatic Standard (Chronic)

    FIELD PARAMETERSFlow (CFS) 20.7 20.7 0.113 0.03 DRY 0.16 -- Frozen Frozen 0.42 Frozen Frozen -- --pH (s.u.) 8.56 8.54 8.38 8.22 -- 7.72 -- -- 6.9 8.21 8.49 8.28 -- --Specific Conductance (µmhos/cm) 321 340 362 386 -- 367 -- -- 425 430 415 417 -- --Temperature (C) 0.03 0.0 0.0 1.04 -- 0.01 -- -- 0.01 0.5 0.14 0.0 -- --Dissolved Oxygen (mg/L) 11.01 10.92 10.74 10.1 -- 10.05 -- -- 11.04 11.2 11.17 11.85 -- --GENERAL PARAMETERSTotal Dissolved Solids 182 192 210 -- -- 218 212 -- -- -- -- 234 -- --COMMON IONS (mg/L) Alkalinity as CaCO3 180 190 200 -- -- 230 230 -- -- -- -- 230 -- --Bicarbonate as HCO3 200 210 220 -- -- 250 250 -- -- -- -- 250Carbonate 10 11 9 -- -- 12 13 -- -- -- -- 12 -- --Sulfate 5 5 13 -- -- 9 9 -- -- -- -- 16 -- --Chloride 2 2 1 -- -- 1 1 -- -- -- -- 2 -- --Fluoride

  • H:\Files\TGOLD\11048\2011 Annual Rpt Wtr Mtrg\R12 Wtr Resources Mtrg Rpt.Doc\\1/27/12\065 2-8 1/27/12\1:09 PM

    µmhos/cm). Major ion chemistry is dominated by calcium and bicarbonate. Metals data to

    date suggests infrequent excursions above DEQ-7 water quality standards. During the May

    2011 monitoring, chronic aquatic standards were exceeded for dissolved aluminum at four

    sites. During the August and November 2011 monitoring, dissolved aluminum

    concentrations were all below the reporting limit of 0.03 mg/L, indicating the elevated

    concentrations during the May 2011 monitoring were likely influenced by high runoff.

    During high runoff (May 2011), surface water standards were exceeded for the following

    constituents:

    • Total recoverable iron at all sites except SW-6;

    • Dissolved Aluminum at SW-1, SW-2, SW-5, and SW-11;

    • Total recoverable lead at SW-3;

    • Total recoverable manganese at SW-1 and SW-2; and

    • Total recoverable thallium at SW-3.

    Surface water site SW-3 exceeded water quality standards for total recoverable iron and

    thallium during August and November 2011, and total recoverable lead during November

    2011. Total recoverable iron exceeded the narrative water quality standard for human health

    at site SW-6 and SW-11 during August 2011.

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    3.0 GROUNDWATER

    3.1 MONITORING SUMMARY

    The proposed exploration adit will 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 perimeter of the major drainages.

    Quaternary alluvial deposits are present beneath the stream channels and along the axis of the

    drainages.

    An initial set of paired monitoring wells (MW-1A and -1B) was installed for baseline

    monitoring in June 2011. These wells were completed immediately upgradient of the Sheep

    Creek hay meadows in the unconsolidated Tertiary deposits and the underlying shallow

    bedrock groundwater system. A second set of paired monitoring wells (MW-2A and -2B)

    was completed in November 2011 downgradient of the evaluation adit near Coon Creek. An

    additional monitoring well (MW-3) was completed in November 2011 near the proposed

    terminus of the exploration adit within the sulfide ore body.

    In addition to the monitoring wells, two test wells (PW-1 and PW-2) were installed near the

    mid point and terminus of the evaluation adit to provide additional information on the

    hydrologic characteristics of the bedrock. Water level data was also collected from various

    exploration boreholes during hydrologic testing at PW-1 and PW-2. Well locations are

    shown in Figure 3 and well completion data is summarized in Table 6.

    3.2 RESULTS

    Potentiometric water level data from November 2011 are compiled in Figure 3 and show

    eastward trending groundwater flow direction in the bedrock groundwater system and a

    gradient of approximately 0.08, which is consistent with the earlier Cominco results (Chen-

    Northern, 1989). Paired wells MW-1A and -1B showed a strong upward gradient during all

    monitoring events. In November 2011, MW-2A and -2B showed a slight upward hydraulic.

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    SP-6

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    SC11-0445744.80

    SC11-0415730.29

    SC11-0395775.22SC11-0325762.81

    SC11-0315717.97

    SC11-094 (AH4)5827

    SC11-091 (AH3)5852

    LEGEND@A Monitoring Well@? Aquifer Test Well

    SpringPotentiometric SurfaceProposed Decline

    &= Borehole_Obs

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    0 375 750Feet

    V:\11048\GIS\Decline Inflow Assessment\Fig 3. Potentiometric.mxd

    Tintina ResourcesBlack Butte Copper ProjectMeagher County, MontanaNOVEMBER 2011POTENTIOMETRIC SURFACE 3

    FIGURE

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    TABLE 6. WELL COMPLETION DETAILS

    Well Name

    Easting (meters)

    Northing (meters)

    G.S. Elev. (feet amsl)

    M.P. Elev. (feet

    amsl) UTM Zone 12 North

    Total Depth

    (feet, bgs)

    Perforated/ Screen

    Interval (feet, bgs)

    Filter Pack Interval

    (feet, bgs)

    MW-1A 506935.22 5180841.55 5635.81 5637.73 38 25 - 34 25 - 34

    MW-1B 506934.19 5180845.46 5636.14 5637.90 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

    PW-1 506301.42 5180698.40 5912.07 5913.74 213 140-211 108-213

    PW-2 506443.15 5180865.03 5793.08 5791.28 215 132 - 212 121 - 212

    In general, the groundwater from all of the wells was a calcium/magnesium bicarbonate type,

    with near neutral to slightly elevated pH (7.05 to 8.56 s.u.). The groundwater quality results

    are in Table 7.

    Paired monitoring wells MW-1A and MW-1B had significantly different water types.

    Shallow well MW-1A is predominantly a calcium/magnesium bicarbonate type water with

    near neutral pH (7.3 to 7.4) and moderately low dissolved solids (184 to 186 mg/L). Water

    in MW-1B is a calcium/magnesium sulfate type water with lower pH (6.3 to 6.5) and

    moderate dissolved solids (364 to 370 mg/L). Nitrate plus nitrite was detected at low levels

    in MW-1A. Dissolved metals detected above the human health standard in at least one of the

    monitoring events include: MW-1A – iron and lead; MW-1B – arsenic, iron, manganese,

    and thallium.

  • Site Code MW-1A MW-1B MW-1A MW-1B MW-2A MW-2B MW-3 PW-1 PW-2Human Health

    StandardDATE 8/26/2011 8/26/2011 11/2/2011 11/2/2011 11/30/2011 11/30/2011 11/30/2011 11/15/2011 11/22/2011

    FIELD PARAMETERSFlow (CFS) -- -- -- -- -- -- -- -- -- --Static Water Level 2.72 21.71 5.05 24.11 43.18 43.14 26.74 -- --pH (s.u.) 7.31 6.51 7.4 6.25 7.32 7.28 7.05 7.55 7.34 --Specific Conductance (µmhos/cm) 318 503 342 661 375 471 823 603 782 --Temperature (C) 7.7 7.6 7.5 7.5 6.86 7.02 9.06 5.7 7.1 --Dissolved Oxygen (mg/L) 9.28 5.12 -- -- 6.40 0.47 0.32 -- -- --GENERAL PARAMETERSTotal Dissolved Solids 186 364 184 370 210 268 544 340 482 --COMMON IONS (mg/L) Alkalinity as CaCO3 170 75 180 49 190 230 220 260 270 --Bicarbonate as HCO3 210 92 210 60 230 280 270 310 330Carbonate < 1 < 1

  • H:\Files\TGOLD\11048\2011 Annual Rpt Wtr Mtrg\R12 Wtr Resources Mtrg Rpt.Doc\\1/27/12\065 3-5 1/27/12\1:09 PM

    Well pair MW-2A and MW-2B had fairly similar results; relatively low TDS, calcium

    bicarbonate type water and similarly low concentrations of trace constituents. Shallow

    monitoring well MW-2A had higher concentrations of dissolved oxygen and nitrate plus

    nitrite, and lower concentrations of sulfate. Dissolved trace constituents were detected in

    MW-2A and -2B included: aluminum (MW-2A), arsenic (MW-2B), barium, iron, lead

    (MW-2A), manganese, strontium (MW-2B), thallium, and uranium. Thallium concentrations

    were above the human health standard in well MW-2B. The concentration of manganese at

    MW-2A was also above the human health standard.

    Monitoring well MW-3, completed in the ore body, had the highest concentrations of the

    dissolved solids and sulfate compared to the other wells. The pH was near neutral (7.05

    s.u.), and had low dissolved oxygen (0.32 mg/L). Dissolved trace constituents consisted of

    arsenic, barium, iron, manganese, strontium, thallium, and uranium. Strontium

    concentrations were highly elevated at 14.6 mg/L; which is above the human health standard.

    Two other trace constituents (arsenic and iron) were above the human health standard.

    Samples collected from PW-1 and PW-2 were relatively similar in water type and overall

    concentration of constituents. PW-2 had slightly higher concentration of sulfate (160 mg/L)

    than concentrations at PW-1 (68 mg/L). Both test wells had lower concentrations of

    potassium than the drilling discharge samples, suggesting disturbances from drilling elevated

    the potassium concentrations in the discharge samples. Trace constituents (dissolved)

    detected in the two test wells included: arsenic, barium, iron, manganese, strontium (PW-2

    only), thallium, uranium, and zinc. Manganese and iron were above the human health

    standard (MDEQ, 2010).

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    4.0 DISCUSSION

    The Sheep Creek drainage contains most of the surface water in the vicinity of project area.

    Tributaries to the creek contribute approximately 10% of the total discharge in Sheep Creek.

    Sheep Creek is listed in MDEQ’s 303d listing for total recoverable mercury; however total

    recoverable mercury concentrations on Sheep Creek (sites SW-1 and SW-2) were all below

    the human health standard in the six samples collected on Sheep Creek. The surface water

    monitoring conducted in 2011 provided data on a large range in flows and provides a good

    start to the baseline data for the project.

    Although groundwater monitoring was limited to two monitoring events the data collected

    provide useful information on the potentiometric surface of the bedrock aquifer and water

    quality in different formations that the proposed exploration adit may encounter. Samples

    from paired wells MW-1A and -1B represent baseline water quality downgradient of the

    proposed mine area near the Sheep Creek drainage. Wells MW-2A and MW-2B represent

    baseline water quality downgradient of the proposed exploration adit near Coon Creek.

    Samples collected from PW-1, PW-2, and MW-3 represent the initial water quality that the

    adit will encounter.

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    5.0 REFERENCES

    Chen-Northern, 1989. Sheep Creek Project – Hydrology Screening Study. June 1989.

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

    Revised March 1983.

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

    Project, June 2011.

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

    Copper Project, October 2011

    MDEQ, 2010. Circular DEQ-7. Montana Numeric Water Quality Standards, August 2010.