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As described above, the raise bore drilling was immediately shut down upon discovery of the water <br />issue. The coffer dam and pump were completed by approximately 2 PM on October 24th and the raise <br />bore water was stopped from entering the mine ditch. The coffer dam created a pool which could be <br />used to set the pump. The pump then delivered the water via pipe to the old #1 shaft. The water enters <br />a very deep shaft there and dissipates into the groundwater. There is no water discharge anywhere on <br />the surface from this shaft, which is located 7900 feet from the Revenue portal and approximately 500 <br />feet deeper than the Revenue Tunnel. The water was observed clearing up approximately 6 hours after <br />the water was re- directed to the shaft, therefore, the water was clear by approximately 8 pm that <br />evening (October 24). Water samples were taken as agreed on October 24th at the mine water <br />discharge, slightly upstream from the discharge on Sneffels Creek, downstream at Camp Bird Mine <br />(approximately 1 mile downstream) and at Box Canyon, which is where Canyon Creek enters the <br />Uncompahgre River immediately upstream of Ouray. It was decided to evaluate the same sample <br />points on October 25th if cloudy water was still observed on that day in the afternoon. If this was the <br />case, new samples would be taken at those sample points. The following day, the water was clear at <br />all points except some residual suspended solids were present in the mine discharge water. No <br />samples were taken from the other points on the second day (Oct. 25). As is seen from the chronology <br />of events, mine personnel took immediate action and corrected the issue as fast as humanly possible. <br />Also, all other important parties, as described above, were contacted immediately and follow -up <br />conversations were made. <br />Page 9 of 17 <br />