I will make a couple comments, but I beleive Rinky or a couple other posters here can get more into depth on that field.

The water needed may not be such a problem, Lori stated that it could be piped up from the Acari. Also, water can be bought and trucked in, which most likely would become more expensive long term. If most of the gold is free gold and coarse, it can be millied on sight with the possibilty of reusing the same water for periods of time until it had to be released. So, if its easily separated, not as much water needed.

You mention 5 tons of dirt for an ounce. That would equate to 6 g/t gold. Our average bulk samples taken is around 20 plus grams per ton. This 20 plus grams per ton is what we end up with, there was more there, but the recovery rate was 90%, which is very good. See below an excerpt from the 2010 tech report;

The Dynacor mill reports an approximate 90% gold recovery from the bulk-sample material

collected from the C1-A4 veins on the Tesoro Property and processed at the Dynacor plant using

“carbon-in-leach” extraction techniques.