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Mr. Bob Oswald <br />29 August 2007 <br />Page Four of Five <br />Photo 15-upper dump to north from upper road: This photo shows a general view of the 14 <br />level area. Note that all of the buildings adjacent to the 14 level portal have been removed and <br />final cleanup is in progress. <br />Photo 16-upper dump to south: View if the 141eve1 portal and the demolished snow shed. <br />One of the two locomotives for underground transport of ore is shown in the photo. The <br />substation owned by San Miguel Power is on the right side of the photo. <br />Estimates of work completed through 26 August 2007 is as follows: <br />• Old core storage building next to office- 40% of the remains of the building has been cleaned up and <br />buried in the settling pond. <br />• Secondary substation- everything has been cleaned up around the substation and transported to the <br />settling pond. <br />• Mill Core Storage Building- the concrete slab has been broken up and about 50% of the rubble has <br />been pushed into the settling pond. <br />• Mill Concentrate Bins- the back wall of the concentrate bins has been knocked down and pushed <br />into the settling pond. <br />• Crusher Foundation- the steel retaining wall in front of the foundation as removed and hauled to <br />burial area, and the foundation has been partially buried. The remainder of the foundation will be <br />buried when final contouring of the site takes place. <br />• Imogene Creek- the creek is approximately 90% cleaned out. Terracing on the west side of the creek <br />is about 70% complete and will provide additional material to bury the back part of the mill. <br />• 14-Level Portal- the portal has been partially cleaned out so that mine water can drain out of the <br />portal through the drainage ditch. The snowshed covering the portal has been completely <br />dismantled, and 50% of the debris has been hauled to the burial site at the east end of the portal area. <br />• Miners Dry (Change House) 100% dismantled, concrete slab has been broken up and transported to <br />the burial area. <br />• Shop-Warehouse Building- the entire stem wall has been knocked down and transported to the burial <br />area. The steel rails for transport into the mine have been removed and salvaged. The concrete slab <br />is approximately 40% broken up and transported to the burial area. <br />• Oil Shed- concrete slab for the elevated oil shed has been broken up and transported to the burial <br />area. All of the area round the shed has been cleaned up and leveled. 100% complete. <br />