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and federal laws and regulations pertaining to employment;and shall <br /> maintain(and furnish copies to the Lessor if requested)liability <br /> insurance in amounts Lessee deems reasonable for its operations on the <br /> 'w.g Properties. <br /> (g). No surface disposal of milled tailings shall be permitted on the <br /> property without prior written approval of Lessor. All milled tailings <br /> shall be solidified in concrete and disposed of underground if any <br /> disposal of such material is made on the Mining Properties. Waste rock <br /> containing acid leaching material or minerals shall be placed <br /> underground unless prior-written approval of Lessor is obtained. <br /> (h) Lessee shall maintain books,records and accounts consistent with <br /> those ordinarily kept by mining operators covering operations on the <br /> Mining Properties,including the mining,milling,We and disposal of <br /> ore and concentrate in accordance with generally accepted principles and <br /> practices of accounting.The books and records of the Lessee insofar as <br /> they relate to operations on the Mining Properties pursuant to this Lease <br /> shall be open to the inspection of the Lessor's authorized representatives <br /> during regular business hours of Lessee upon at least one(1)day's <br /> notice. <br /> Within sixty(60)days after the end of each calendar year,or if net <br /> smelter returns are being generated from the operations,within thirty <br /> (30)days after the end of each calendar quarter,Lessee shall furnish <br /> Lessor progress reports showing the character and amount of work <br /> performed by the Lessee during the preceding period on the Mining <br /> Properties. Lessee shall maintain all sample data,geological maps,and <br /> other items of information resulting from such work. <br /> Lessee will permit Lessor`s representatives authorized in writing <br /> and upon reasonable notice during normal business hours,to inspect the <br /> information maintained by the Lessee,and also to enter upon the Mining <br /> Properties accompanied by Lessee's representative,to inspect the <br /> work performed by the Lessee pursuant to this Lease provided such <br /> activity shall not unreasonably interfere with the Lessee's operations. <br /> Entry upon the Mining Properties by Lessor's authorized representatives <br /> shall be at Lessor's risk. Lessor indemnifies and holds Lessee harmless <br /> from any claim,damage or demand by realm of injury to Lessor's <br /> representatives,invitees or die like incurred as a result of their <br /> inspecting the Mining Properties. <br /> 9 <br />