2003-09-02_REVISION - M1986076 (2)

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road, 70 (seventy) to 80 (eighty) feet above the proposed tailings disposal area. This road as seen in Exhibit E, must be permanent and maintained for travel to claims BLM, on other side of the mountain, not Incas Mine property. Exhibit E reclamation plan being re-submitted for purposes of showing proposed tailings disposal area. Also, Plate 1, technical revisions by Brian Bond 6/22/03 submitted with AM-3 application Aug. 5, 03, is a correlation (overlay) of the affected area, as shown on Exhibit E-map. (Site description rule 6.3.2.©)description of water resources in the area of purposed operation, The only stream which may receive drainage directly from the affected area is Little Deadwood Gulch as detailed in Exhibit S-1.(1987) topagraphic map; Hesperus quadrangle, which runs approximately 2.6 miles, where it joins the La Plata River. The proposed tailings disposal area is about (300) three hundred feet above Little Deadwood Gulch. During the summer months Little Deadwood Gulch may run dry for periods of time, depending on previous snow pack melt and rain. Ground water is present in audit #1 (shown on Exhibit -E) and is the site of a permitted water well, and monitored compliance point for sampling ground water quality, which should show any negative or positive affects of the mining operation, determined by any change in quality of ground water samples. Surface water quality samples are taken from Little Deadwood Gulch, downgradient of mining operations, at or near the entrance of Incas Mine Property as per D.M.O. and E.P.P. plans, point of compliance. Any positive or negative affects of the mining operation will be determined by any change in the quality of surface water samples taken from Little Deadwood Gulch. The basic Ph of Little Deadwood Gulch is 8t, as established by the last (10)ten years samples taken by D.G.M.C., all samples were sent to D.M.G. with annual reports, as per current D.M.O. and E.P.P. plans (1986). There are no problems with ground water or surface water quality. Baseline water samples were established 1994-1997 and are given in Hydrology Review, Exhibit-A, water samples, Incas Mine amendment AM-002, DMG file. At present Incas Mine monitors and samples ground water, point of compliance is at property gate in the live stream. Water is tested for 1. Conductivity @. WAD Cyanide, 3. Sulfates, 4. Ph 5. TDS. Samples are taken twice yearly, early spring (June) and fall (October). Prior samples were tested by Hazen, DGMC is currently using Inter Mountain Labs for