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' HOMESTATE INC. <br />P.0. BOX 80905 <br />SEATTLE, WASHINGTON 98108 <br />(206) 9321800 <br />RESPONSE TO PROBLEMS/POSSIBLE VIOLATIONS <br />File' 83-141, MLRD inspection of February 13, 1992 <br />' " 1. Our permit calls for us to remove water from Left Hand Creek and <br />' store it in the Times adit that will allow it to flow into the Wynona mine. The <br />fresh water enters the mill ahead of the grinding circuit. It exits the mill at <br />the end of the flotation circuit. From there it is pumped into the tailings <br />' pond. The permit calls for a drain located at the bottom of the tailings pond <br />for water to be decanted and drained into the Hazel A. The drain is plugged <br />off, and instead of draining and decanting from the bottom, we're decanting <br />' by way of a floating pump. That pump pumps into the Hazel A. There it is <br />stored until needed. When needed, water is pumped from the Hazel A back <br />' into the mill where it is treated in the same manner as called for in the <br />permit. The water is reused in that manner with no discharges. The whole <br />system is controlled by 3 pumps, and no valves, that can only be activated <br />' inside the mill. The pumps are as follows: <br />1. A pump from the flotation circuit to the pond. <br />2. A pump in the pond to the Hazel A. <br />' 3. A pump from the Hazel A back to the mill. <br />We intend to prevent any unpermitted discharges by keeping all <br />motor controls that operate the 3 pumps inside the building. <br />' Water level and water quality monitoring are followed as prescribed <br />by the permit. <br />' When we started this mill up in the middle of November, 1991, all of <br />our water vessels were full. Therefore we have not required any makeup <br />water from Left Hand Creek. We don't anticipate any make-up water until <br />mid-summer. At that time, we will either pump water from Left Hand Creek <br />or we will have a water use permit from the state engineer to pump water <br />from the Cash mine. E~ibit I <br />' I invite you to look at page 15 of amended Cash mine permit. The only <br />changes that we made are inside the building. Exhibit J <br />1 <br />a2. On February 20, 1992 we made application to the state engineer for a <br />' well permit for the Cash mine. Exhibit K <br />' " 3. Except for a few loads of rock from the Oscar mine to tune up the <br />crushing circuit, the only ore that was processed at the Gold Hill mill came <br />' from the Bueno mine. We did not process this ore until we had repeated <br />assurances by the MLRD that we were permitted to do so. We are the owners <br />of record of the Bueno mine and other surrounding properties. <br />' Exhibits A, B and G <br />