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ANNUAL UPDATE <br />(2002 MLR Report Year) <br />SUNNYSIDE MINE BULKHEADS <br />Area Inventory of Seeps, Springs and Flowing Adits <br />Background: <br />Sunnyside Gold Corporation (SGC) submitted a Technical Revision to its MLR permit <br />(TR-14) to provide technical details for tunnel bulkheads designed to stop drainage to <br />surface through the tunnels from the Sunnyside Mine. The purpose being to eliminate <br />flows requiring water treatment. Final reclamation of the Sunnyside Mine property, <br />according to the reclamation plan in the permit, would then be possible. <br />As a condition of approval for TR-14, Sunnyside made four commitments (Appendix <br />B-1) to the Division of Minerals and Geology (DMG) and the Mined Land <br />Reclamation Board. This report section is submitted to satisfy annual data and <br />narrative reporting requirements contained in these commitments. <br />TR-14 Commitment Status: <br />SGC has satisfied all of the actions required by the MLR TR-14 Commitments <br />#1 - #4. The monitoring commitment was for two years after equilibrium. Equilibrium <br />was established as occurring in November of 1999. The monitoring commitment <br />expired in October of 2001. SGC continued monitoring through 2002. This <br />information is included with this report. SGC does not plan to extend monitoring and <br />reporting through the 2003 monitoring season. <br />Consent Decree Status: <br />In 1996, SGC entered into and began implementation of a voluntary Consent Decree <br />agreement with CDPHE to satisfy MLR TR-14 Commitment #1. Successful <br />termination of the Consent Decree provisions will satisfy CDPHE concerns with <br />closure of the Sunnyside Mine using bulkhead seals and allow final reclamation of the <br />property. In 2002 SGC and CDPHE filed a joint Amendment to the Consent Decree <br />with the Court (Amendment No.4). It has been determined that SGC has met the terms <br />of the Consent Decree-Amendment No.4 and is eligible for release from the Consent <br />Decree agreement with CDPHE (letter attached-Appendix B-8). Therefore SGC has <br />satisfied TR14-Commitment #1. <br />