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1997 ANNUAL UPDATE <br /> (1996 MLR Report Year) <br /> SUNNYSIDE MINE BULKHEADS <br /> File No. M-77-378 <br /> Area Inventory of Seeps, Springs and Flowing Adits <br /> Background: <br /> Sunnyside Gold Corporation submitted a Technical Revision to its MLR permit (TR-14) to provide <br /> technical details for tunnel bulkheads designed to stop drainage to surface through the tunnels from <br /> the Sunnyside Mine. The purpose being to eliminate flows requiring water treatment to facilitate <br /> release from CDPS discharge permits. Final reclamation of the Sunnyside Mine property according <br /> to the reclamation plan in the permit would then be possible. <br /> As a condition of approval for TR-14, Sunnyside made four commitments (Appendix B-1) to the <br /> Division of Minerals and Geology (DMG) and Mined Land Reclamation Board. This report section <br /> is submitted to satisfy data reporting and narrative requirements contained in these commitments. <br /> Status of Commitments: <br /> Sunnyside has satisfied all outstanding elements contained in Commitments #1 - #4 other than on- <br /> going monitoring and reporting which is current. During the 1996 report year, Sunnyside completed <br /> the last outstanding item by submitting detailed costs for hydraulic seal construction and submitting <br /> a $697,000 Letter of Credit for hydraulic seal replacement bonding. DMG has accepted these <br /> submittals to fulfill TR-14 Commitment #3. <br /> Project Status: <br /> During the report year, Sunnyside entered into a voluntary Consent Decree agreement with CDPHE <br /> to satisfy Commitment#1 and began implementation of the terms in the Consent Decree agreement. <br /> These terms include stream monitoring, implementation of Mine Remediation Projects according to <br /> approved work plans and monthly/quarterly progress reports. DMG is a recipient of these progress <br /> reports so the details will not be covered in this report. <br /> The bulkhead valves were closed during the report year and the mine pool was allowed to rise <br /> towards physical equilibrium. As of the end of the report year (March 31, 1997), the mine pool had <br /> reached 11,232 feet MSL. <br /> B-8 <br />