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A7, ,COLORADO <br />Division of Reclamation, <br />Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />July 9, 2014 <br />Bradford Janes <br />Varra Companies, Inc. <br />8120 Gage Street <br />Fredrick, Colorado 80516 <br />Re: Fourth Review of Slope Stability Analysis, Varra Companies, Inc., Varra - Coulson <br />Resource Project, File No. M- 2013 -064 <br />The Division of Reclamation, Mining and Safety (Division) staff has reviewed the stability <br />analysis response from AWES, LLC dated May 12, 2014 included with the Varra - Coulson <br />Resource Project 112c adequacy response letter dated May 6, 2004. <br />1. The AWES letter did not address the Division's comments regarding Cross Section No. 2. <br />The Division believes Cross Section No. 2 — Critical Slope Area with 3:1 to 2:1 to 1.25:1 mine <br />slope with 10' offset, unconsolidated pit floor material and topsoil stockpile loading is no <br />longer been considered by the Applicant. Please confirm the slope configuration will not be <br />implemented by the Applicant. <br />2. The AWES letter did not address the Division's comments regarding Cross Section No. 1. <br />The Division believes AWES intended for Varra Companies to address the question. <br />The Applicant states in the proposed mining plan extraction will occur no closer than within <br />10 feet from the permit boundary, man -made structures, easements and right -of -ways. The <br />proposed 10' offset distance differs from the offset distance measurements between the <br />extraction limit line and easements and structures shown on the Extraction Plan Map <br />(Exhibit C -2). <br />The Division will require the Applicant to demonstrate the proposed 1.25H:1V mine slope <br />configuration with the 10' offset is stable by producing a stability analysis demonstrating a <br />factor of safety of 1.3. The Applicant may also revise the typical cross section by increasing <br />the offset distance, changing the mine face slope or by another acceptable method. <br />1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http: / /mining.state.co.us <br />John W. Hickentooper, Governor I Mike King, Executive Director I Virginia Brannon, Director <br />*1876* <br />