Water Management at Equity Silver Mines Ltd.

Predominantly all wastes, both tailing and blasted rock, contain pyrite and are classified acid generating. Acid generation occurs within waste rock fills around the property however not within tailing thus far due to sub- aqueous disposal of the product. The presence of acid mine drainage (A.H.D.) complicates water management at the minesite and represents a high cost to treat and monitor discharges to assess environmental impact. Since identifying the problem with A.M.D. in 1982, detailed records have been maintained on meterological data, snow pack, pump records, treatment statistics and water chemistry. This data provides a base for making operating decisions and allocating operating funds.