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3.0 STATUS OF PROJECT OPERATIONS (2007 - 2008) <br />3.1 Current Status/Activities <br />The American Soda Yankee Gulch project is presently in interim status with no solution <br />mining or processing taking place. Ongoing activities during the report period are <br />focused on the well field and test mine pad. These activities include inspection and <br />maintenance of storm water control features, security, maintenance of access roads, <br />vegetation establishment and control of noxious weeds. Additionally, mechanical <br />integrity testing (MIT) of the remaining long term stand-by wells is conducted once <br />every two years. The next scheduled MIT testing will be conducted in August - <br />September 2008. <br />In October - November 2006 the two test mine ponds were closed and the <br />approximately eight acre disturbed area was re-contoured and reseeded. Photo 2 <br />below shows part of the test mine pad and both of the test mine ponds situated in <br />Yankee Gulch several months after they were constructed in 1997. This photo was <br />taken from the air and looks down the Yankee Gulch draw east toward Piceance Creek. <br />American Soda, L.L.P. <br />DRIVIS Annual Report <br />July 10, 2008 <br />Photo 2 - Yankee Gulch test mine well pad and ponds. Photo taken in 1997 several months after <br />construction of the ponds.