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(Page 21 <br />MINE ID # OR PROSPECTING ID # M-1977-378 <br />INSPECTION DATE 6 1/ 3/p2 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG routine monitoring of permitted sites and in response to <br />an inquiry from BLM regarding reclamation requirements for affected lands at the Mayflower <br />Tailings Pond area. Charlie Higby, BLM, was present during the inspection. The Sunnyside Mine <br />is approved for 236.21 acres affected area. DMG holds 51,250,000 financial warranty. Operator <br />has commenced final reclamation of all portions of the mining operation. <br />American Tunnel Water treatment plant was active. Reclaimed areas appeared stable, evidence <br />of slumping or excessive erosion was not observed. <br />Mayflower Tailings Pond 1 Vegetative cover appeared stressed due to regional drought <br />conditions. Composted manure had been distributed on the pond top to augment revegetation <br />efforts. Reclaimed areas appeared stable, evidence of slumping, settling or excessive erosion was <br />not observed. Upland diversion ditches A, B, and C, constructed under the Consent Decree, <br />Upland Hydrologic Control Project, appeared stable and functional. Water was trickling only in <br />ditch C, ditches A and B were dry. The approved reclamation plan indicates that the Pond 1 area <br />will be reclaimed to support rangeland and wildlife habitat post mining land use. <br />Mayflower Tailings Pond 4 Pond 4 remains active to receive sludge from the water treatment <br />plant at the American Tunnel facility. Upland diversion project and groundwater intercept walls <br />appeared stable and functional. Intercepted upland drainage was observed trickling in portions of <br />the diversion structure. Evidence of the operator employing weed control methods, required under <br />Rule 3.1.10, for the previous Canada thistle infestation were observed. The approved reclamation <br />plan indicates that Pond 4 area will be reclaimed to support rangeland and wildlife habitat post <br />mining land use. <br />No problems or possible violations were observed. <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247- <br />5469. <br />I & E Contact Address <br />NAME Larrv Perino <br />OPERATOR Sunnvside Gold Corporation <br />STREET P.O. Box 177 <br />CITYlSTATElZIP Silverton, CO 81433 <br />cc: Tom Gillis, DMG <br />^ CE <br />X BLM, Charlie Higby <br />^ FS <br />^ HW <br />^ HMWMD (CHI <br />^ SE <br />^ WOCD (CHI <br />^ OTHER <br />