Dave:

Thanks for your info. Rita gave me your number (780 489 8025), but your line was busy almost all morning.

Our review of the 2003 inspection report basically contains the following comments. I plan to send a full text of  this to Dionne either today or Wednesday morning. If you have any comments, please send me a note.

My points are basically as follows:
1. BGC's recommendation on the internal tailings dams suggests that they are getting worse (?). Two things need to be done : either they fix the dams, or if not critical (maybe some or all), they should indicate why. I agree that if it is only separator dike and no consequence of causing failures to the perimeter dikes (by overtopping pond 1 or 2), then it may not be a problem.

2. dump ponds and sewage treatment pond dikes are not part of item 6(g). But it should be addressed as part of the closure and reclamation activtities.

3. No new survey data. Any settlement on the crest of dams over the year?. They should address this, to ensure that minimum 1m freeboard limit should always be maintained, even during high water level in the ponds.

4. Comment on routine inspection by site staff - see below

Regards
Ramli

R. Halim  (Acres International Limited)
Toll Free 1 888 824 0441
(204) 786 8751   Fax: (204) 786 2242     rhalim@acres.com

Review and Comments on BGC Inspection Report
We generally concur with the finding and recommendations indicated in BGC=s inspection report.  Based on the field observations and photographs presented in the report, there are no significant concerns related to the performance of the perimeter tailings dams.

The cover letter that was prepared by Echo Bay Mines Ltd., and accompanied the 2003 inspection report indicates that remedial work as suggested by BGC was completed for all of the perimeter tailings dams in August 2003.  However, none were carried out in any of the internal tailings dam, as suggested in Appendix 1 of the report. The internal tailings dams may not affect the overall stability of the TCA. However, considerations should be given for rehabilitation work as suggested by BGC.  Alternatively, analysis must be shown to prove that under a worst scenario, failures in any of the internal tailings dams would not results in overtopping of the perimeter tailings dams.  While the stability of the internal tailings dams may not be critical, failures of these dams may result in slumping of the materials into the Pond 1 or Pond 2, hence raising the water level in these ponds. Breaching of J Dam will drain the water from Pond 1 to Pond 2. Such incidents may result in reduction of the freeboards of the perimeter tailings dams, or overtopping of these dams.

The crest elevation of the dams should be checked against the as-built elevation.  This would help to determine whether settlement has occurred and if remedial work to top up the crest of the dam will be required.  GPS kinematic survey elevations were established on most of the dams and reported in the 2000 Annual geotechnical inspection.  Similar surveys may be carried out to compare the new elevations to this survey data.  As indicated in the inspection report and in the water license, a minimum freeboard of 1 m shall be maintained for the crest of the dam at all times. However, it is not known whether crest settlements may have occurred since the crest elevations were last surveyed. No information is available on the current and actual freeboards of the dams during high water level conditions.

The 2003 inspection report also include inspections and recommended remedial work for the dump pond dikes and the sewage containment dikes.  While these dikes are not covered under Part D, Item 6(g) of the Water License, remedial work for these dikes will be required as part of the closure and reclamation activities for the Mine.

Finally, as recommended by BGC, it is important that the site personnel must have some basic knowledge about critical information that is required during their routine inspections and in filling of the inspection form. Observations, such as increase of seepage flow, freeboard requirements, erosion, slumping, cracking and development of any sinkholes along the dams that raise concerns to their stability must be recorded, reported. If necessary, it must be further followed up by a review from a geotechnical engineer.