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Ron Thompson <br />Page 2 <br />06/09/06 <br />Bedrock well water quality sampling is no longer required due to the large distances of these <br />wells from the mined area. <br />Flooding of the workings continued through 2005, with the two measured GEM wells returning <br />an average water level elevation of 6815 feet AMSL at the end of 2005. Water levels rose 10 <br />feet in the GEM-1 monitoring location south of Highway 12 as of the end of 2005. Due to the <br />sealing of the NW-1 shaft (GEM-3) in December 2004, water level can no longer be measured at <br />GEM-3. <br />Alluvial water quality along the Purgatoire River is within an acceptable range for all known and <br />current uses. PAW-5 and PAW-6 water quality samples show no significant changes from <br />previous samples taken. A sample taken in April 2006 in alluvial well CCAW-1 below the <br />development waste pile may shows a general improvement of water quality. All alluvial water <br />wells were within normal and expected ranges. <br />Sarins~ and Seea Survey <br />All spring and seep monitoring has been discontinued. <br />Summary <br />Surface water is no longer monitored at this site. Ground water quantity impacts are unlikely but <br />possible. This year is the tenth year after reseeding of the mine site. Ground water quality <br />impacts are not apparent and water quality data collected from water in the mine workings <br />indicate impacts to ground water quality are minor, as mine water appears to be of similar quality <br />as the baseline ground water quality. <br />This concludes the Divisions review of the 2005 Annual Hydrology Report for the Golden Eagle <br />mine. Thank you for your diligence in completing your monitoring program in accordance with <br />the approved plan. <br />Sincer ly, <br />K Gorham <br />Environmental Protection Specialist II <br />