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Page Three <br />11/19/91 B. Griffith with Dept. of Health plans to join Division on <br />inspection of Cash Mine & Mill unpermitted water discharge. <br />11/26/91 Division and Dept. of Health inspect property. Division cited four <br />possible problems and two possible violations. The Division <br />requested a Technical Revision be submitted by the Co-operators <br />which addresses all of these concerns. The Co-operators submitted <br />separate responses. <br />(1) PB - unpermitted water discharge - no detailed explanation or <br />plan for current unpermitted pumping scheme. No measures for <br />controlling accidental water discharges. Provide a detailed plan <br />by 1/30/92. <br />(2) PB - Proper water use permits not secured - provide proof that <br />this has been completed. <br />(3) PB - Erosion Channels in Cash Mine Dump - grade and place berm <br />around top of dump by 1/30/92. <br />(4) PB - Rip in tailings impoundment liner - patch by approved <br />method in permit by 1/10/92. <br />(5) PV - Milling ores from properties other than Gold Hill Ventures <br />properties - admitted currently processing Bueno mine ores. <br />Provide detailed account of all ores previously and currently being <br />processed at mill along with source mine and property ownership by <br />1/10/92. <br />(6) PV - Sulfide-bearing concentrates in contact with ground near <br />mill. Clean up by 1/10/92. <br />11/27/91 Mr. Tatman told Division that concentrates by mill were brought <br />from Colorado Springs by Exotic Materials and sold to a Swiss <br />company. He said he would scoop them up and put them in ore bin. <br />12/9/91 Division copy of invoice and receipt that 400 tons of gold-sliver <br />ore from Tunnel level of Apache vein was purchased by Wayne <br />Tatman. $2,500 paid to Hendricks Mining Company. <br />12/9/91 Division confirmation that Keeter Trucking (receipt coming to <br />Division) transported loads of ore from the Boulder Mill to the <br />Gold Hiil Mili. <br />12/17/91 Mr. Tatman said concentrates on ground near mill were from <br />Humboldt, Co., Nevada. He said it was only 30 pounds or so which <br />were stockpiled temporarily and sent to Canadian mill. He said <br />cons residue had been scraped up and put in tailings impoundment <br />(He said in the ore bin on 11/27/91). <br />12/]7/91 Received Mr, iatman's draft response to 5 of 6 issues from <br />inspection report. Promised Mr. Munn, COM, Inc., attorney, would <br />address ownership of ore processed in the mill issue. <br />12/23/91 Mr. Tatman faxed a slightly altered Ore Processing Flow Chart <br />diagram from amendment application for our interest. He has a <br />rough draft of water pumping scheme and will send it this week. <br />12/27/91 Division Receipt, final $500 paid to Hendricks Mining Co. for ore. <br />