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Ron Thompson <br />Page 2 <br />03/l8/OS <br />Water quality samples from the flooded workings indicate sodium bicarbonate water similar in <br />composition to baseline water quality. As the mine workings flood, the natural groundwater <br />gradient to the north-northeast will be re-established. Water quality will be monitored in the mine <br />workings through two of the three GEM series of wells on an annual basis. Flooding of the <br />workings continued through 2003 and 2004, with all three GEM wells returning a consistent <br />water level elevation of 6309 feet AMSL at the end of 2004. Water levels are now measurable <br />and rising in the GEM-1 monitoring location south of Highway 12 as of the end of 2004. Due to <br />the sealing of the NW-1 shaft (GEM-3) in December 2004, water level can no longer be <br />measured at GEM-3. <br />Alluvial water quality along the Purgatoire River is within an acceptable range for all known and <br />current uses. Alluvial well CCAW-1 below the development waste pile may show some <br />degradation due to leaching from the pile as compared to alluvial water quality in PAW-5 and <br />PAW-6 completed in the Purgatoire River alluvium. All alluvia{ water wells rebounded slightly <br />from all-time lows in 2002 regarding water level. <br />Sarins~ and Seea Survev <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 possible <br />and continued monitoring through the bond liability period should assist in identification of <br />potential mining impacts. Ground water quality impacts are not apparent and initial field <br />parameters taken from the mine workings indicate impacts to ground water quality are unlikely, <br />as mine water appears to be of similar quality as the baseline ground water quality. <br />This concludes the Divisions review of the 2003 and 2004 Annual Hydrology Report for the <br />Golden Eagle mine. Thank you for your diligence in completing your monitoring program in <br />accordance with the approved plan. <br />Since I~% p /~2(~~ <br />Ke Gorham-f" <br />Environmental Protection Specialist II <br />