Contents:

1) Good news: unanimous NSF site panel selection of Homestake

2) Bad news: Barrick committed to flooding

3) Reference Design Project Book

1) NSF site panel selection of Homestake: Last Friday the NSF issued the report of its site panel. This was a distinguished engineering panel whose members had had experience with over 1000 tunneling and mining projects on six continents. The conclusion: Homestake is unanimously, and by far, the favored site from the two perspectives considered, 1) geological suitability and 2) relative costs. The panel is very confident that NUSEL could be built at Homestake on budget, with little chance of failure.

Please go to the NUSEL web site, http://int.phys.washington.edu/nusel/ to read the report. It will be found in the middle of the main page, as a new posting.

2) Unfortunately, the bad news is severe. Monday, the first working day after the NSF announcement, Barrick Gold stated it would proceed with mine flooding June 10. The NSF report noted in part:

"The panel was unanimous in the opinion that continuing to pump is the most desirable option. Important reasons to continue pumping include maintenance of mine stability, avoidance of equipment replacement or damage, consistency with existing operating approvals, and preservation of the rock mass environment." I would add to this a minimum 2-3 year delay in funding NUSEL, the time required to dewater.

Three additional points: First, the feasibility of dewatering is not demonstrated: Barrick has offered no plan for accomplishing this. We have two expert engineers (former head engineers at Homestake) working for us. When we asked them what would be required to dewater the mine in FY06, the answers were not comforting. A set of portable pumps would have to be lowered to depth from the 4850 ft level. Somehow pump columns would have to be put in place, perhaps through the ramp system. This is problematic because the mine would not have been maintained for a long period, the conditions would be unbearable (very hot and humid, as the ventilation will stop with the flooding), and MSHA would have to agree to let workers into the mine. The current permanent pump system is impressive, 2500 gpm, equivalent to emptying SuperKamiokande in four days. Optimistically one might be able to handle the weight of portable pumps managing 1500 gpa. This plus engineering time leads to the 2-3 year estimate.

It is very unclear how this would be financed. Barrick will have retained no technical force on site. Presumably one envisions the state taking over the site on the prospect that NSF will fund the restoration. This requires the state to gamble that a lab is coming. The state does not have $40M. Thus the NSF would have to be willing to put $40M up front, to get us to the point where we could core the proposed development areas at 7400 ft, etc. We do not like the odds.

The potential for damage was noted by the committee. The condition of all the rock bolting in the mine, after 5 years of heat and humidity, would have to be determined. The expectation is that a great deal of work would be required to guarantee safe access. The geomicrobiologists have consulted an individual they belief is the expert on Homestake water. He believes the water pressure will cause the rock to recharge, which then rules out a meaningful geomicrobiology problem. We fear that most of the geoscience program will be problematic. The EarthLab argument for NUSEL is the access to 9 km^3 of rock via 400 miles of drifts. We doubt MSHA will allow access to those drifts after 5 years of flooding.

The Executive Committee is doing everything conceivable to encourage the state to fight this. I will keep you posted.

3) All of this has demoralized our Reference Design Project Book effort. Nevertheless, it is 90% complete. If nothing else, it will document for history what could have been, if the flooding takes place June 10.

4) In conclusion, the Executive Committee has discussed options. We are a resilient bunch and have good ideas, but we think it is best to discuss these next week. We are still very hopeful that Governor Rounds will use the considerable authority that exists in state.