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<br />L<B>and</B> <B>mine</B> <br /> <br />into area streams. <br /> <br />The documents - reviewed for the first time by <br />the Denver Rocky Mountain News - are <br />part of a lawsUit against Robert M. Friedland, the <br />Introspective 49-year-old Chicago-born financier <br />who founded the Canadian firm Galactic <br />Resources Ltd. <br /> <br />The documents - hundreds of cartons stored at <br />the federal courthouse and the Colorado attorney <br />general's office - suggest that Galactic officials <br />misled Colorado's understaffed and underfunded <br />mine regulators about the amount of acid the mine <br />would release. They also show that the <br />company's own employees and consultants <br />questioned the safety of the operation. <br /> <br />"This project is the epitome of the 'disaster looking <br />for a place to happen,'" wrote an inspector for <br />GeoSeNices Inc., the Florida company Galactic <br />hired to do quality control on the portion of the <br />mine where cyanide was sprayed over ore. <br /> <br />New information from the documents examined <br />by the Denver Rocky Mountain News <br />reveals the following details: <br /> <br />. Galactic told mine regulators that the company <br />could restore a site damaged by generations of <br />mining even though a prime consultant warned <br />company executives that those promises were <br />vastly exaggerated. <br /> <br />. The company unwisely pressed ahead with <br />construction during the winter of 1985-86. At <br />11,850 feet, that was risky at best and ultimately <br />proved disastrous. <br /> <br />. An engineer said he warned Friedland that <br />Galactic should stop cyanide leaks caused by an <br />avalanche and rockslide before running more <br />cyanide through the system. He said his warning <br />was ignored, though Friedland, in sworn <br />testimony, denied ever receiving that advice, <br /> <br />. The former manager of the mine said Galactic <br />misled the Bank of America, low-balling the cost <br />of constructing the mine. The bank loaned the <br />company $25 million, providing crucial funding <br />that got the mine under way. <br /> <br />. Staff geologists and on-site executives warned <br />Galactic's leaders in Vancouver, British Columbia, <br />that ore in the area contained far less gold than <br />investors were being told. The U.S. Securities and <br />Exchange Commission subsequently forced the <br />company to alter its claims. <br /> <br />Page 2 of 20 <br /> <br />Weather qives <br />mountain sports an <br />early start <br /> <br />With Cinco de Mavo, <br />pavinll, expect jams <br />on 1-25 tonight <br /> <br />Boulder selected as <br />historic destination <br /> <br />Sun brinlls warmth, <br />but no new records <br /> <br />Allev-based qun <br />dealer ordered to <br />close shop <br /> <br />State increases <br />number of licenses <br />to hunt elk <br /> <br />Urban children qet a <br />chance to sample <br />outdoor experiences <br /> <br />Fashion editor at <br />News wins national <br />honor <br /> <br />LECIS2000 <br /> <br />Tax reductions an <br />odd mixture <br /> <br />Winners and losers <br /> <br />The lighter moments <br /> <br />City ready for face- <br />off over gun bill <br /> <br />Less taxing <br /> <br />~ <br />~rOf <br /> <br />an Indian activist. <br /> <br />. As the mine's financial woes grew, Galactic sold stock in an effort to raise <br />enough money to fix growing environmental problems. But company officials <br />knew they could not afford to repair the damage, even as they signed <br />agreements with the state to do so. <br /> <br />http://wv-w.denver-rmn.com/news/O 5 07 smmt !.shtm! <br /> <br />5/7/00 <br />