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TED SCHWINDEN. GOVERNOR

STATE OF MONTANA

CAPITOL STATION

1625 ELEVENTH AVENUE HELENA, MONTANA 59620

I appreciate your company notifying the Department that a 75 gallon spill occurred at the Landusky site. Still, we would appreciate quicker notification than five days after the accident as I mentioned in my December 3, 1982 letter. I understand it takes time for the word to filter down to your staff, but again please make an attempt to notify us as soon as an accident, especially a spill

I notified Rob Green (Water Quality Bureau) of the accident and we both agreed that your application of Calcium Hyper Chloride was correct and satisfactory.

-AN EQUAL OPPORTUNITY EMPLOYER

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MPDES Permit discharge: Yes ( 2 No(X) Air Quality Permit: Yes(X) No

310 Permit (stream crossing-soil conservation): Yes() No(X)

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Following approved mining plan as submitted
Culverts installed where necessary

Topsoil salvage

Waste rock/spoil piles greater than 5 feet above high flow flood level
Stream relocation as submitted

Erosional control measures concurrent with mining

(x) Presence of stagnant water

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Air Quality control measures in operation-includes roads
Water discharge

Disturbance within permitted area

Reclamation concurrent with mining as submitted

Road construction as approved

Water sample

Pictures taken

Forest Service or BLM stipulations being met

( ) Tailings/settling pond design as approved

Reclamation:

(x) ( ) Reclamation plan being followed as approved

Discussion: Ann SW of the 79-82 heap leach

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Pangea would havê bêén gönê by the end of the summer, 1989. They were pröducing gold for $700 an ouncé.

Changes to Access road from Basin: Survey to begin next week. If feasible, will be constructed in 1990. New Office would be on Cataract Creek Road. Traffic Management Plan being prepared. The road would have to cross saddle to Basin Creek side in area of Blattner shop area. This also avoids the bridge over Basin creek. Section 17 is private with a small section of BLM and FS.

Pad #1 Expansion: Pegasus will be looking for modification of sump arrangement. Add two new sumps above to decrease fluids in storage in pad at any one time. New Contractors to be hired next year. 800,000 tons loaded to date. Agglomeration has been changed.

Long Range Plan: In 1990, Pegasus plans to submit 5-8 year plan for 10-12 million tons. A life of Mine plan but they will also intend exploration into Mt. Baldy area. Also they will be proposing a powerline from Tunnels through FS land (25 kv line like Beal Mt.). It would be 25' off road. Concern will be visual impacts in Mt Baldy area.

Road from Basin will need improvements: widen, and convoy vehicles.

New Proposed Leach Pad area: Unpatented claims below old land application area. At junction below Mine road #172 shown on FS map. The new road is not on map. Section 25-26 Smith Placer New leach pad site in Clear Creek, and West Fork of Grub Creek. 30-40 acres, 12 million tons capacity, 100 feet high en FS property. To increase freeboard and tie in old pad, BCM will need another land application area below proposed pad. Better soils are found in this area for land application. The new pad will have internal sumps and will pump back uphill to existing ponds. The pad will need a new road into Baldy road, 1000 feet long. The route in section 30 has already been looked at be archeologist and everybody.

Ore reserves: 6 million tons on Luttrell Ridge. More located between Columbia and Pauper's Pit. Future exploration to continue in Old Baldy area. 2-3 ore trends in area.

Plan is to get new pad in and road around property to increase security. Haul road will be road below existing pad.

Mine plan is to backfill most pits with waste rock: Columbia, Pauper's Fit Extension, Pauper's Pit Central, and Pauper's Pit. No acid producing potential has been found in rock yet.

Sediment was observed running off roads while on tour. Culvert need to be May need road material pit. Mine was cleaning up slash and hauling to topsoil stockpile.

cleaned out.

Discussed water quality standards not being met. Pegášus is locking at new design for drainage.

No changes needed in plant capacity.

Alternative leach pad area looked at, is below topsoil slippage area. It is patented, but has shallow water table, and no capacity (5 million tons).

Luttrel Ridge exploration is a disaster.

Lots of dead trees in Forest from cold snap last winter.

Waste dumps are full of fines.

A land exchange is completed for slivers of FS land in area.

Discussed the need for EIS. The FS thought that one NEPA document could be prepared with two decision statements for FS and patented acreages. The road, pad, and land application area are on the FS. Cumulative impacts will need to be discussed. FS thought they could do mine plan with mitigated EA as was done

with Beal Mt.

Pegasus plans to submit plan by October 15: Conceptual plan and plan of study. Fish and Game will be biggest problem. Road gravel source needed. Old Baldy road and powerline corridor will be another issue.

No grazing allotments in area.

PLP/cf

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