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Mr. Means/M- 1982- 090/Disagreement with Pending DMO <br />October 8, 2013 <br />Page 4 of 5 <br />was expecting to address the question as to whether the Camp Bird Mine should be <br />considered a DMO. <br />If CBCI decides that it does not wish to begin mineral extraction, and desires to only <br />continue to perform the activities approved under TR -04, then CBCI will continue to <br />sample water quality, per the same monitoring schedule and requirements to build a more <br />robust understanding of the hydrologic baseline conditions. This sampling will continue <br />until such time as CBCI obtains Division approval to begin mineral extraction (at some <br />point beyond the first quarter of 2014) or CBCI decides to cease all activities and/or <br />reclaim the site. <br />Consequently, while activities are underway that were approved under TR -04 and baseline <br />hydrologic conditions are being established, CBCI is of the understanding that no activities have <br />been approved by the Division which could expose "acid- or toxic - forming materials as a result <br />of mining operations ". Therefore CBCI disagrees with the Division's determination that the <br />Camp Bird Mine is a DMO, and contends that the Camp Bird Mine should not be considered a <br />DMO until such time as the Division approves activities to take place that could expose acidic or <br />toxic - forming materials to the degree specified in Rule 1.1(14). <br />Disposed Solids Sampling <br />As disclosed in TR -04, nearly 14,000 feet of drift rehabilitation through barren and <br />unmineralized Tertiary San Juan Tuff (Tsj) is required in order to reach the Camp Bird vein. <br />Also included in TR -04, is an approved disposal area for approximately 500 cubic yards of <br />collapsed materials that could be brought to surface from the rehabilitation activities. CBCI <br />committed to a solids sampling program to ensure that no acid- or toxic - forming materials are <br />exposed as a result of activities approved under TR -04. The sampling program consists of <br />representatively sampling every 5,000 tons of materials brought to surface from underground and <br />submitting the sample to a laboratory for acid - base - accounting and leachate analysis. To date, <br />no materials have been brought to surface. <br />Activity Update and Near Term Plans <br />As discussed with the Division at the Durango Field Office on October 1, 2013, the Camp Bird <br />Mine has been under a lease- option agreement between CBCI and Caldera Mineral Resources, <br />LLC (CMR) since September 2012. In January 2013, CMR was notified by the U.S. Department <br />of Justice (DOJ) that DOJ was pursuing litigation against the parent company of CBCI, with the <br />intent to encumber ownership of the Camp Bird Mine (please refer to attached letter from DOJ). <br />Ultimately this pending matter combined with high cost of development of the mine itself, <br />resulted in CMR dramatically slowing its development plans at the Camp Bird Mine beginning <br />in June 2013. Current activities in the permit area consist of general site maintenance and on- <br />�I <br />