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PERMIT #: M- 1977 -378 <br />INSPECTOR'S INITIALS: WHE <br />INSPECTION DATE: July 22, 2011 <br />Reclamation of the affected lands associated with the Cement Creek diversion structure for the water <br />treatment plant, appeared complete (photo 11). Vegetative cover for reclaimed lands at the American Tunnel <br />area ranged from well established to sparse. Reclaimed lands appeared stable; evidence of slumping, settling <br />or excessive erosion was not observed. <br />The American Tunnel portal is located on an unpatented mining claim on BLM lands. Ownership of all other <br />permitted lands at the American Tunnel area, previously owned by Gold King Mines Corporation, have been <br />secured by Todd Hennis, d.b.a. San Juan Corporation. Closure of the American Tunnel included the <br />construction of three bulkheads, in accordance with conditions of the Consent Decree (Case No. 94 CV 5459), <br />TR -14, and TR -25. The first bulkhead was constructed 1996 and the last in 2002. Final backfill, grading and <br />seeding occurred 2007. Drainage from the American Tunnel is conveyed through the backfill by a 24 inch <br />diameter ABS corrugated culvert with steel grate closure (photo 12). The mine drainage is conveyed, <br />untreated, to the North Fork of Cement Creek by an open ditch located along the north end of the mine <br />bench. <br />Inspection Contact Address <br />Larry Perino <br />Sunnyside Gold Corp <br />P.O. Box 177 <br />Silverton, CO 81433 <br />Enclosure: Twelve photos taken during the inspection <br />CC: Steve Shuey, DRMS GJFO <br />Page 4 of 4 <br />