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Monitoring Wells - No problems were found with King I's downstream alluvial monitoring well (the <br /> Wiltze well) and King II's downstream alluvial monitoring well (in the middle of Hay Gulch). <br /> Processing Waste <br /> The face of the waste pile at King I showed no evidence of structural instability. A dozer was <br /> regrading the top of the pile to enable extension of the underdrain to be consistent with the approved <br /> design. <br /> Support Facilities <br /> King I - Fuel tanks in the surface facilities area showed no signs of leaks or spills, and have adequate <br /> spill barriers in place. <br /> King II—Earthwork for the surface facilities area of this new mine began in March 2007. Most of the <br /> surface earthwork(roads, ditches, etc.)has been completed. Structures in the loading and truck loop <br /> areas are under construction. Four portals have been developed. <br /> General Mine Plan Compliance <br /> Approved Mine Plan Maps King I -005 and King II-005 were compared with the operator's on-site <br /> mining progress maps. No discrepancies were found between the approved maps and the progress <br /> maps. <br /> Subsidence <br /> Subsidence cracks were observed on the Mike Crawford ranch. Cracks remained open in a gulch, but <br /> were nearly healed(filled with sediment) in pasture areas inspected(see photo, below). <br /> 4 <br />