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with the Level 6 waste rock toe seeps indicated the presence of other sources of water outside of <br />Deadman Gulch (since the Gulch was isolated within the geotextile channel). Discussions with <br />Colorado DRMS and the BLM were held and all parties agreed to study the hydrologic conditions <br />associated with the site, with the installation of wells on the Level 6 pad, and the continued <br />sampling of underground and surface features (water and solids). The DRMS and BLM agreed <br />that the removal of the pad materials may not be currently prudent given the fact that the waste <br />rock toe seep flows and quality appear to be related to fault-system water instead of waste rock <br />contact. We have recently completed the installation, sampling and analysis of two Level 6 wells, <br />and other Level 6 features. GGI will interpret the data and provide the results to DRMS, BLM and <br />CDPHE. It should also be noted that the waste rock toe seeps have been dry for several weeks. <br />If you have any questions about this information, do not hesitate to contact me or Mike Quinlan <br />with GGI. <br />Sincerely- <br />Mike Quinlan for Karmen King/GGI <br />Karmen King/Aquatic Toxicologist/Gault Group Inc. <br />36 W. Main St. <br />Cortez, CO 81321 <br />Phone: (970) 565-0278, or (970) 565-1222 <br />FAX (970) 565-1226 <br />cc:/Bob Oswald/DRMS; Dave Lazorchak/Gunnison BLM; Christian Pichette/Richmont Mines Inc.; Kye <br />Abraham/LKA Int.; Steve Glass/President/Gault Group Inc. <br />Page 2 of 2