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N Z/CC-MC-X April 15, 2014 Mr. Michael Cunningham Via FEDEX Environmental Protection Specialist TRK 7983 9179 2549 Division of Reclamation, Mining and Safety 1313 Sherman Street, Room 215 RECEIVED Denver, Colorado 80203 Re: X Lyons Mine Permit M,1977-208 APR 17 2014 chnical Revision No. 11, C - Pit Hydro eologic Investigations First Quarter 2o14 Monitoring Data.- DIVISION OF RECLAMATION MINING AND SAFETY Dear Mr. Cunningham: This letter transmits surface water and groundwater data associated with the sampling of cement kiln dust disposal area (C -Pit). The report covers the C -Pit ponded water and related monitoring well water for the first quarter of 2014, covering the reporting period January 1, 2014 to March 31, 2014. Table 1 presents data for the last four quarters. For the first quarter compliance monitoring, water samples were collected on February 27, 2014 from CEM -oo1 and CEM 004 groundwater wells, and from the C -Pit ponded water. Inspections of CEM 005 on March 6, March 14, and March 27, 2014 indicated that the well did not produce any water. The C -Pit ponded water and groundwater wells samples collected were analyzed for pH, chloride, sulfate, dissolved solids, selenium and thallium, with the reported pH data based on the pH analysis performed at the time of collection (Table 1). Except for sulfate and chloride, analytes from CEM -004 where within the target levels prescribed by TR -11. Values for sulfate and chloride both exceeded that target level of 250 mg /I that is identified in TR -11. As you know, on March 7, 2014, CEM EX submitted a proposal to revise the trigger concentrations for chloride and sulfate monitoring, in the TR -12 application. It is understood that the Department of Reclamation Mining and Safety is currently reviewing the TR -12 application. However, for reference, the chloride and sulfate concentrations measured on February 27, 2014 in CEM - 004 have been plotted on the proposed C -Pit Stiff Plot showing the Average C -Pit Signature and a 10 percent decrease in the Average Signature (Figure 1). Both the chloride and sulfate concentrations measured on February 27, 2014 in CEM -004 are below the proposed trigger levels in TR -12, and are not believed to be reflective of infiltration from C -Pit. If there are any questions regarding the above information or the attachments, please contact Environmental Director Kimberly Dennis at kimberlyb.bradley@cemex.com Sincerely, Maribel B. Aguilos Environmental Coordinator For: Kimberly Dennis Director, Environmental - US Operations Office : +1(713)722 -1710 Mobile: +1(713)259-9361 Address: 929 Gessner Rd, Suite 19oo Houston, TX 77024 e -Mail: kimberlyb.bradley@cemex.com Encls.\ Summary of Analytical Results (Table 1) and Stiff Diagram — Chloride and Sulfate Concentrations at CEM -o04 and C -Pit (Fig. 1)