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Pitch Reclamation Project <br />Colorado Mined Land <br />Reclamation Board <br />2009 Annual <br />Reclamation Report <br />Based upon the 2009 monitoring data and embankment inspections, it appears that the <br />cutoff trench and clay blanket have addressed the previous localized perched zone <br />and related seepage through the embankment core, thus allowing the embankment to <br />function as designed. The monuments and piezometers will continue to be monitored <br />in 2010. <br />A Sediment Embankment Report is submitted annually to the Colorado Division of <br />Water Resources (CDWR) providing the results of the embankment-monitoring <br />program. The 2009 report is provided in electronic Adobe Acrobat© Portable <br />Document Format on the CD attached to this report. <br />4.5 Waste Rock Dumps <br />The waste rock disposal areas were inspected monthly during 2009, except when <br />winter conditions prohibited access, in accordance with the recommended monitoring <br />program. Six(5) of the seven (7) piezometers were measured monthly to monitor <br />seasonal phreatic surface fluctuations for both the Indian Creek and Tie Camp waste <br />rock dumps. During the winter of 2007, wildlife knocked off the casing of piezometer <br />IC10370 and kicked debris into the 2 inch pipe. This piezometer had never shown <br />seasonal water levels fluctuations greater than one foot, with the averaged water level <br />of 190.7 feet bgs. The bottom of this piezometer is 192 feet bgs. In the fall of 2009, <br />this piezometer was flushed with pressurized water to within three feet of its historical <br />depth of 192 feet bgs. Now the total depth is approximately 189 feet bgs, with no water <br />in the pipe. The flushing will allow use of piezometer 10370 as part of the ongoing <br />Indian Creek monitoring program. <br />Additionally in the fall of 2009, piezometer 10300 was also flushed with pressurized <br />water in an attempt to wash out some of the silt built up in the casing. The 10300 <br />piezometer washed out fairly well although it isn't as deep as it was historically, but the <br />readings appear to be more in line with the historical reading in this piezometer. <br />In the past, water levels in several of the piezometers have had seasonal fluctuations <br />and generally fall back within an acceptable range by mid-summer. Following the dry <br />conditions of 2001 through 2003, the seasonal variations have increased in recent <br />years as heavier snow packs have occurred. We believe the increases in the maximum <br />water levels are related to the spring snow melt and the saturated zones within the <br />dump remain thin. <br />In 2010, Homestake will continue to evaluate the cause and possible effects of the <br />seasonal spikes in the water levels in some piezometers, and observe surface features <br />13