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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />September 10, 2013 <br />Kerry Vinci <br />Aspen Mineral Resources, Inc. <br />PO Box 1309 <br />STATE OF COLORADO <br />Rancho Santa Fe, CA 92067 Loretta Pirieda <br />Director <br />Re: Sooner Lucky Strike Mine, Permit M- 1982 -020, Notice of Pending Designation as a Designated <br />Mining Operation <br />Dear Mr. Vinci, <br />The Division has determined that the Sooner Lucky Strike Mine, Permit Number M- 1982 -020, is a <br />Designated Mining Operation ( "DMO ") as defined in the Colorado Mined Land Reclamation Act (CRS §§ <br />34 -32 -101, et seq.) ( "Act") and the Rules and Regulations of Hard Rock, Metal, and Designated Mining <br />Operations ( "Rules "). The statutory and regulatory definition of DMOs include mining operations at <br />which toxic or acidic chemicals are used in the extractive metallurgical processing on the site or mining <br />operations at which acid- or toxic - forming materials will be exposed or disturbed as a result of mining <br />operations. C.R.S. § 34- 33- 103(3.5)(1) -(II); Rule 1.1(14)(a) -(b). The Rules require the Division to provide <br />notice to the operator if the Division determines a mining operation is, or has the reasonable potential <br />to be, a DMO based upon the criteria established in the definition of DMO. (Rules 7.2.1(1), 7.2.2(1)) <br />This letter serves as notice to the operator that the Division has determined the Sooner Lucky Strike <br />Mine is a DMO ( "Notice "). <br />The Division's notice to an operator regarding its DMO determination must include factual statements <br />supporting the determination. See Rule 7.2.2. The Division's determination for the Sooner Lucky Strike <br />Mine resulted from its review of the permit application and file and the present and foreseen <br />operational conditions of the Sooner Lucky Strike Mine, including site geology and geochemistry, ore <br />materials to be extracted, and the chemicals and reagents that will be necessary to use for milling and <br />processing ore materials. The Division relied upon the following facts to support its determination that <br />the Sooner Lucky Strike Mine is, or has the reasonable potential to be, a DMO: <br />Activities at the Sooner Lucky Strike Mine currently consist of mill and mine improvements and <br />other infrastructure to begin extractive metallurgic processing from the attached mine. Mined <br />ore will be processed at the milling facility on site, which will utilize acid or other potentially <br />toxic chemicals. <br />The tailings resulting from the milling and extraction of metals potentially expose or disturb <br />acid- or toxic - forming materials. <br />3. Conditions at the operation will include exposure of mineralized materials at the surface, <br />including ore, tailings, and waste rock potentially exposing acid - and /or toxic- forming materials. <br />Waste rock and sub - economic mineralized materials potentially containing the acid- or toxic - <br />forming materials will be disposed of in waste rock areas exposed to precipitation and near <br />surface water ways potentially threatening the prevailing hydrological balance. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junrtinn - Di rannn Artivp anrd tnartiva Minpc <br />COLORADO <br />D I V I$ ION O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Rancho Santa Fe, CA 92067 Loretta Pirieda <br />Director <br />Re: Sooner Lucky Strike Mine, Permit M- 1982 -020, Notice of Pending Designation as a Designated <br />Mining Operation <br />Dear Mr. Vinci, <br />The Division has determined that the Sooner Lucky Strike Mine, Permit Number M- 1982 -020, is a <br />Designated Mining Operation ( "DMO ") as defined in the Colorado Mined Land Reclamation Act (CRS §§ <br />34 -32 -101, et seq.) ( "Act") and the Rules and Regulations of Hard Rock, Metal, and Designated Mining <br />Operations ( "Rules "). The statutory and regulatory definition of DMOs include mining operations at <br />which toxic or acidic chemicals are used in the extractive metallurgical processing on the site or mining <br />operations at which acid- or toxic - forming materials will be exposed or disturbed as a result of mining <br />operations. C.R.S. § 34- 33- 103(3.5)(1) -(II); Rule 1.1(14)(a) -(b). The Rules require the Division to provide <br />notice to the operator if the Division determines a mining operation is, or has the reasonable potential <br />to be, a DMO based upon the criteria established in the definition of DMO. (Rules 7.2.1(1), 7.2.2(1)) <br />This letter serves as notice to the operator that the Division has determined the Sooner Lucky Strike <br />Mine is a DMO ( "Notice "). <br />The Division's notice to an operator regarding its DMO determination must include factual statements <br />supporting the determination. See Rule 7.2.2. The Division's determination for the Sooner Lucky Strike <br />Mine resulted from its review of the permit application and file and the present and foreseen <br />operational conditions of the Sooner Lucky Strike Mine, including site geology and geochemistry, ore <br />materials to be extracted, and the chemicals and reagents that will be necessary to use for milling and <br />processing ore materials. The Division relied upon the following facts to support its determination that <br />the Sooner Lucky Strike Mine is, or has the reasonable potential to be, a DMO: <br />Activities at the Sooner Lucky Strike Mine currently consist of mill and mine improvements and <br />other infrastructure to begin extractive metallurgic processing from the attached mine. Mined <br />ore will be processed at the milling facility on site, which will utilize acid or other potentially <br />toxic chemicals. <br />The tailings resulting from the milling and extraction of metals potentially expose or disturb <br />acid- or toxic - forming materials. <br />3. Conditions at the operation will include exposure of mineralized materials at the surface, <br />including ore, tailings, and waste rock potentially exposing acid - and /or toxic- forming materials. <br />Waste rock and sub - economic mineralized materials potentially containing the acid- or toxic - <br />forming materials will be disposed of in waste rock areas exposed to precipitation and near <br />surface water ways potentially threatening the prevailing hydrological balance. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junrtinn - Di rannn Artivp anrd tnartiva Minpc <br />