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Pitch Reclamation Project March 2003 <br />2002 Annual Reclamation Report Page 6 <br />underground workings of the Pinnacle Mine. The approval of TR4 required Homestake to monitor <br />the effects of resaturation in the Pinnacle workings for five years or until hydrologic conditions <br />stabilized. Components in the Monitoring Plan outlined in TR4 (Section 4.0), included continuation <br />of discharge water quality monitoring at the POC (SW-33), monitoring of groundwater resaturation <br />levels, annual spring and seep surveys in areas down-gradient from Pinnacle workings, and <br />monitoring for changes in water quality that could be attributable to resaturation. The stated <br />purpose of the monitoring program was to verify the intended effectiveness of the adit plug. <br />Homestake has continued to monitor the following facets of resaturation through 2002: <br />• Survey of springs and seeps, <br />• Groundwater levels in piezometers installed in the area of the Pinnacle workings, <br />• Water Quality and flow from the Pinnacle Adit at sampling point PP-01, and <br />• Monitor discharges from the property at the Point-of-Compliance SW-33. <br />For 2003, HMC will continue to monitor the resaturation of the south wall of the North Pit as done in <br />2002. <br />4.3.1 Spring and Seep Monitoring <br />Spring and seep surveys were conducted to monitor changes in shallow groundwater conditions due <br />to construction of the Pinnacle Adit plug. These surveys have been conducted annually since July <br />1995 and repeated in 2002. In general, flow from some springs and seeps increased for a brief <br />period after the adit plug installation and have declined to a steady state since the spring of 1997. <br />Small variances, noted since 1997, are believed to be attributable to conditions including <br />precipitation, depth of snow pack, timing of snowmelt, and the potential for infiltration with respect to <br />frozen ground. Spring and seep locations are presented in Figure 3. A nine-year cumulative <br />summary of the spring and seep flow measurements is provided as Table 2. <br />2002_ RECLAMATION RPT.DOC <br />