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Ron Thompson <br />Page 2 <br />04/15/03 <br />Bedrock well water quality sampling is no longer required due to the large distances of <br />these wells from the mined area. Previous sampling had indicated an improvement in <br />salinity due to gradient reversal caused by mining drawdown. Water quality samples from <br />the flooded workings indicate sodium bicarbonate water similar in composition to baseline <br />water quality. As the mine workings flood, the natural groundwater gradient to the north- <br />northeast will be re-established. Water quality will be monitored in the mine workings <br />through two of the three GEM series of wells on an annual basis. Flooding of the workings <br />continues, although at a slower rate than previous years. Data collected at GEM-2 (Third <br />North) and GEM-3 (NW-1 shaft) both return an identical average rate of flooding of the <br />mine workings of 1.3 feet per month. Water levels had yet to reach the GEM-1 monitoring <br />location south of Highway 12 as of the end of 2002. GEM-1 will likely begin to return <br />measurable water level values in 2003. <br />Alluvial water quality along the Purgatoire River is within an acceptable range for all known <br />and current uses. Alluvial well CCAW-1 below the development waste pile may show <br />some degradation due to leaching from the pile as compared to alluvial water quality in <br />PAW-5 and PAW-6 completed in the Purgatoire River alluvium. All alluvial water wells <br />established new all-time lows regarding water level, confirming persistent drought <br />conditions. <br />Sarina and Seeo Surve <br />All springs were found dry in 2002, another strong indicator of the impact of the extended <br />drought on the hydrologic regime. <br />Summary <br />Surface water is no longer monitored at this site. Ground water quantity impacts are <br />possible and continued monitoring through the bond liability period should-assist in <br />identification of potential mining impacts. Ground water quality impacts are not apparent <br />and initial field parameters taken from the mine workings indicate impacts to ground water <br />quality are unlikely, as mine water appears to be of similar quality as the baseline ground <br />water quality. The extended drought appears to have affected the hydrologic system in the <br />vicinity of the mine. <br />This concludes the Divisions review of the 2002 Annual Hydrology Report for the Golden <br />Eagle mine. Thank you for your diligence in completing your monitoring program in <br />accordance with the approved plan. <br />Sinc ety, <br />Kent Gorham <br />Environmental Protection Specialist II <br />