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(Page 2) <br />MINE 10 # OR PROSPECTING ID # M-1977-378 <br />INSPECTION DATE 10124!03 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection focused on the progress towards completion of the plans approved through TR-026, which <br />addressed removal ofpre-permit tailings from near bank areas of the Animas River and relocation of those tailings <br />to the Mayflower Tailings Pond 4. The plans for TR-026 were also reviewed by W QCD as the Power Plant Tailings <br />Project, submitted by SGC in accordance with the Consent Decree Amendment. Eight photos, taken during the <br />inspection, accompany this report. <br />Approximately 115,000 cubic yards of tailings and contaminated soils were removed from approximately 10.6 acres <br />area located between CR 110 and the Animas River, nearthe old power plant and former engineers office (Photos <br />1 and 2). Depth of the excavation varied but averaged approximately 6.7 feet. Affected lands were graded to <br />stable slopes, which did not exceed 3H:1 V. An embankment of earthen materials with rock armoring remained <br />along the west bank of the Animas River. Configuration of the river channel and its 100-year floodplain was not <br />altered significantly by the tailings removal project (Photo 3}. <br />The depth of the tailings excavation was sufficient to expose groundwater in an isolated portion of the referenced <br />area. A rock filter drain was constructed to allow exposed groundwater to return to the Animas River. Positive flow <br />through the rock drain, towards the river, was observed during the time of this inspection (Photo 4). During the <br />review period for TR-026 the operator had informed DWR of the potential for the excavation project tc expose <br />groundwater. The operator is cooperating with DW R requirements, <br />The operator reconfigured an existing drainage ditch at the downstream end of the project to route upland drainage <br />through the area. The drainage ditch was designed and constructed to safely convey runoff generated by the i 00- <br />yearprecipitation event. The drainage ditch was lined with 40 mil PVC liner and covered with earthen materials and <br />rock armored. The outlet of the ditch was heavily armored with +18 inch riprap materials (Photos 5 and 6}. <br />Final vegetative cover will include a diverse mix of grasses, fortis and transplanted willow shrubs. During the time <br />of this inspection the operator was transplanting willow shrubs (Photo 7). <br />At a location downstream of the Mayflower Tailings facility the operator constructed a reactive treatment wall to treat <br />surface and groundwater. The reactive treatment wall was installed under the Consent Decree and was not part of <br />TR-026. The wall was constructed from limestone, gravels and sawdust, 3 feet wide and extended 19.5 feet deep. <br />The operator indicated that the wall should treat groundwater down to approximately 17-foot depth (Photo 8). <br />No problems or possible violations were observed. <br />Responses to this report should be addressed to the Division of Minerals and Geology, Attn.: Wally Erickson, 701 <br />Camino del Rio, Room 125, Durango, CO 81301, phone (970) 247-5469. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE2IP <br />Larry Perino <br />Sunnvside Gold Corporation <br />P.O. Box 177 <br />Siivenon. CO 81433 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />X WOCD, Sarah Johnson <br />^ OTHER <br />