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Homi STAKE <br />RECEI'V'ED <br />SAN 13 2017 <br />DIVISION OF RECLAMATION <br />MININGAND SAFETY <br />Colorado Department of Natural Resources December 31, 2016 <br />Division of Reclamation, Mining and Safety <br />Attention: Mineral Division <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />RE: HOMESTAKE PITCH RECLAMATION PROJECT <br />2016 ANNUAL GEOTECHNICAL REPORT (M-1977-0OARV--' <br />Dear Division; <br />Attached is the 2016 Annual Geotechnical Report (report) for the waste rock management areas at the <br />Homestake Pitch Reclamation Project The waste rock management areas include the Indian and the Tie <br />Camp rock dumps as shown on Figure 1. The history of the rock dumps has been provided in previous <br />annual reports and is not repeated in this report. The rock dumps were inspected monthly in 2016, except <br />when winter conditions prohibited access, in accordance with the recommended monitoring program. <br />The inspections and monitoring conducted in 2016 indicate stable conditions for the Indian and Tie Camp <br />rock dumps. <br />The rock dump piezometers are presented on Figure 2 Detailed analysis and presentation of the 2016 <br />data from the Indian and Tie Camp rock dump piezometers are provided in the following pages. In 2016, <br />shallow piezometers were installed near the toe of the Indian Rock Dump, as highlighted on Figure 3, to <br />facilitate treatment of uranium as water flows from upgradient areas through an emplaced reactive zone. <br />These piezometers were approved by the Division of Reclamation, Mining and Safety on May 9, 2016 <br />under Technical Revision #7 - <br />The water level readings in 2016 are plotted on Figure 4, and a graph with piezometer water levels since <br />1996 is provided as Figure 5. The Y-axis on these plots is labeled as depth to water from the ground <br />surface, but note the reverse -order of the axis to more intuitively reflect water level increases and <br />decreases Two of the piezometers in the Indian Rock Dump were replaced in 2011 after several years of <br />issues associated with corrosion and silt buildup in the well casing made it difficult to obtain an accurate <br />reading of the phreatic surface in the rock dump The piezometers are now functioning to provide <br />accurate water level information The 2016 monthly water level measurements are provided in Table 1 of <br />the attached report- The piezometer readings in 2016 were indicative of a moderate snow pack when <br />compared with the 2012 and 2013 readings, but below the snow pack and total annual precipitation in <br />2014 and 2015. During the monitoring period of November 2015 through October 2016, the onsite <br />precipitation gage recorded 20 inches of precipitation, compared with 23 and 31 inches during the 2015 <br />and 2014 periods, respectively As reflected on Figure 5, the water levels in the rock dump piezometers <br />show little fluctuation in the winter months with a temporary rise in response to the spring snow melt or <br />summer rain events. Water levels usually return to normal levels in mid- to late summer <br />Please feel free to contact me in the Sargents Colorado office (970) 641-4541 or via cell phone at (719) <br />530-1656 if you have any questions. <br />Sincerely, <br />Dale Davis 1caA-2� <br />Pitch Site Manager <br />cc Holton Bums — Homestake Mining Company -Toronto, Canada <br />Phillip DeDycker — Arcadis, U S , Inc. <br />HOMC9TAKE MININD COMPANY OF CALIFORNIA %% PQ Box 4d, <br />9ARo ENT61, COLORADO 912481 <br />TELE: 19701 641-4541 0 MOBILE: 17191 530-1656 <br />