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A7COLORADO <br /> Division of Reclamation, <br /> a Mining and Safety <br /> 1 Department of Natural Resources <br /> MEMO <br /> "DATE: October 16, 2014 <br /> /IFROM: Tom Kaldenbach ! rm )W,,4.''"'^ <br /> Senior Environmental Protection Specialist <br /> ,To: Tim Cazier <br /> RE: N31neral Mountain Gold, LLC, Mineral Mountain Project, File M-2014-045 <br /> vReview of Acid Rock Report prepared by Braun Environmental, Inc., <br /> received September 26, 2014 <br /> The Acid Rock Report explains that no evidence of acid water or soil conditions were found on the site. <br /> Surface Vegetation showed no signs of acid conditions, mine water was pH 6.1, and steel structures <br /> inside the shaft were not excessively corroded. DRMS considers that conditions can change when the <br /> site re-activates, exposing fresh rock and possibly encountering more ground water. <br /> Table 1 of the Acid Rock Report shows Acid Base Potential values for three samples from the Mineral <br /> Mountain project. Interpretation of Acid Base Potential values is explained in Section 2.2 of the 1994 <br /> EPA Technical Document"Acid Mine Drainage Prediction". Guidance from the EPA publication is <br /> applied to the Acid Base Potential values provided in the Mineral Mountain report, as shown in Table A, <br /> below: <br /> Table A <br /> Sample Acid Base Acid-producing <br /> Potential,tons of potential,based on EPA <br /> CaCO3/kiloton if publication <br /> rock <br /> MH-1 0 Uncertain <br /> MH-2 13 Uncertain <br /> MH-3 -68 Potentially acid- <br /> producing <br /> The comparison in Table A indicates uncertain acid-producing potential for the two most widespread <br /> rock units (samples MH-1 and MH-2) and potential for acid-production for the 1-inch vein(sample MH- <br /> 3). DRMS considers the uncertain results for MH-1 and MH-2 as supporting a conclusion that DMO <br /> status is appropriate for the Mineral Mountain Project. Further support for this conclusion is provided <br /> by the following two observations: <br /> O.-co <br /> I1313 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 #x IS76 <br />