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(Page 2) <br /> MINE ID # OR PROSPECTING ID # M-1977-378 <br /> INSPECTION DATE 5/1 1/01 INSPECTOR'S INITIALS WHE <br /> OBSERVATIONS <br /> This inspection occurred in response to the operators request for release of 7.44 acres power plant <br /> area from the permit acreage for successful completion of reclamation. Larry Perino accompanied <br /> the DMG inspector throughout the inspection. The Sunnyside Mine is approved for 243.65 acres <br /> affected area. DMG holds $1 ,250,000 financial warranty. Operator has commenced final <br /> reclamation. <br /> Power Plant Area The 7.44 acres area was deeded to the San Juan Historical Society (SFHS) in <br /> 1996. On 12/20/00, DMG approved TR-24, changing the PMLU for the power plant area to <br /> commercial/industrial, as requested by the SFHS. Reclamation backfilling, grading and revegetation <br /> had been completed in accordance with the approved reclamation plan and the Act and Rules. <br /> DMG recommends approval of the operator's request to release the 7.44 acre power plant area <br /> from the permit acreage. <br /> American Tunnel Water treatment plant was active. Reclaimed areas appeared stable, evidence <br /> of slumping or excessive erosion was not observed. <br /> Mayflower Tailings Pond 1 Vegetative cover appeared well established and diverse for all <br /> portions of the embankment outslopes and pond top. Composted manure had been distributed <br /> recently on the pond top to augment revegetation efforts. Upland diversion ditches A, B, and C, <br /> constructed beyond the permit boundary under the Consent Decree, Upland Hydrologic Control <br /> Project, appeared stable and functional. Water was flowing in all three upland diversion ditches. <br /> Mayflower Tailings Pond 4 Pond 4 remains active to receive sludge from the water treatment <br /> plant at the American Tunnel. Upland diversion project and groundwater intercept walls appeared <br /> to have been completed in accordance with the Consent Decree requirements. Topsoil had been <br /> redistributed and affected area for the diversion project seeded, new growth grasses were evident. <br /> Evidence of the operator employing weed control methods for Canada thistle were observed. <br /> Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 <br /> Camino del Rio, Room 125, Durango, Colorado 81301 , Attn: Wally Erickson, phone no. 970-247- <br /> 5469. <br /> 1 & E Contact Address cc: Tom Gillis, DMG <br /> ❑ CE <br /> NAME Larry Perino ❑ BL <br /> OPERATOR Sunnyside Gold Corporation ❑ FS <br /> STREET P.O. Box 177 ❑ HW <br /> CITY/STATE/ZIP Silverton, CO 81433 ❑ HMWMD (CH) <br /> ❑ SE <br /> ❑ WQCD (CH) <br /> ❑ OTHER <br />