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Material Stora¢e Bench: Inclinometer I02-27 has shown an increase in displacements during the 2"d quarter by up to 0.1 inches. A total displacement of up to 0.75 inches has been measured at this locaton since 2005. The movement recorded at this location is cleazly defined by a sheaz plane located at approximately 75 feet below the ground surface. The movement in this area correlates with increased ground water levels (as discussed in Section A) and increased surface displacements measured by survey mirrors (as discussed in Section B). An engineering design for a dewatering trench at the MSB that will help alleviate the high Bound water levels (and reduce movement) at this location is currently under review by MCC. North of Water House: Significant surface displacement has been recorded by inclinometer I02-23 during the 2nd quarter 2006. Displacements in the order of 0.5 inches down to 5 feet below the ground surface have been recorded. This surface displacement is most likely creep associated with saturation of the neaz surface colluvium material during the spring thaw. However a sheaz surface is clearly defined at 65 feet below the ground surface. A total displacement of 1 inch has been recorded at this location since 2003. The stability of this azea will be checked during the 2006 on site structural review and recommendations will be made with respect to remedial measures (if any) that aze required to ensure stability. North of Shou: ' Movement of up to 0.5 inches has been recorded by I02-OS down to a depth of 10 feet since the 1~` quarter 2006. A total displacement of up to 1.5 inches has been recorded at this location since ' February 2005. The displacement at this location is clearly defined by a sheaz plane located at approximately 10 feet below the ground surface. Continued displacement of IlA-45 was recorded during the 2nd quarter 2006. A total displacement of 1 inch has been recorded at this location down to 60 feet below the ground surface. The displacement at this location seems to be creep associated with the presence of colluvium material as there is no distinct sheaz plane present. The movement recorded at these locations north of the surface shop is a concern due to their close proximity to the proposed parking lot and existing mine infrastructure. It is recommended that additional surface mirrors be placed on the decline south of the proposed pazking lot to keep a check on surface movements in this area. West of Shoo: ' Inclinometer I2A-12 measured significant displacement during the 2"d quarter 2006. Displacements up to 0.5 inches have been recorded at this location to a depth of 50 feet below the ground surface. ~ The nature of the displacement is creep associated with the presence of the colluvium material since Barr Engineering Company 2n0 Quarter 2006 06/26-031 Geotechniral Monitoring