Bore monitoring was a constant procedure by Stawell Gold Mine, and recent tests confirmed that the groundwater quality down gradiant from TSF2 is potentially being influenced by seepage, ERC Officer, Kate Miller reported to members of the ERC at its recent meeting in Stawell.

Ms Miller said it was necessary to identify a signature to determine the source of the seepage.

``The main signature used to assess for the presence of contamination from TSF is thiocyanatc (SCN),'' she said.

Thiocyanate was described by Earth Systems in their report completed in July 2006 titled SGM Assessment of Site Water Quality, as follows:

 Thiocyanate (SCN) is a relatively stable compound formed by the association of cyanide in the presence of sulphur. Cyanide is used by SGM in the gold processing circuit and residual cyanide reports with the process tailings to TD2. Excess free cyanide can combine with partially oxidised sulphur generated from the breakdown of sulphur minerals in the tailings to produce SCN.

As previously reported to the ERC, water sampling of the groundwater bores SD406 and S0406A (located to the North of Tailings Dam 2) have confirmed the presence of SCN.

Results from the quarterly round of water monitoring completed during September were 63ppm SCN in bore SD4O6A and 1 .3ppm SCN in bore SD406.

The annual round of water monitoring completed during September 2008 included the sampling of 56 points including bores, dams and creeks in the mine site. All dams and creeks that were sampled did not indicate the presence of thiocyanate (SCN).

Groundwater bores SD404 (2.6ppm), SD406(0.4ppm), SD4O6A (67ppm), SD490 (2.6ppm), SEO9A (loppm), SE1O (75Oppm), SE12 (42Oppm), SE13 (0.6ppm), SE14 (51 ppm) and SP1 01 (3.6ppm) which are all in close proximity to TD2 have confirmed the presence of thiocynate.