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Virginius mill was moved to the Revenue portal area. The mill was located just south of the Revenue <br />access road bridge across Sneffels Creek. <br />After the Revenue Mill burned down in 1912, mining activity ceased until 1922 -23, when a small amount <br />of ore was mined. Rehabilitation work occurred in 1936 -38, but no production was recorded. Additional <br />rehab work was done from 1943 to 1948 but again, little production was recorded. In 1964, Federal <br />Resources did further rehab work and extended a drift northwest from the Virginius #1 shaft into the <br />Monogahela workings area and the shaft was reconditioned down to the 210 level. A small amount of <br />mining was done in this area at that time. <br />No further activity took place until 1979, when Ranchers Exploration and Development Corporation <br />acquired the lease and rehabilitated the #1 shaft to the 700 level. A new drift was driven to the southeast <br />a distance of 2600 feet from the #1 shaft on the 550 level. An extensive in -mine drilling program was <br />initiated in this area and reserves of silver and sulfides were identified, but low metal prices forced the <br />mine into abandonment in 1984. <br />Sunshine Mining Company acquired the lease in 1995 and permitted the mine under the current rules <br />but abandoned the mine in 1997. An NPDES permit was also issued to Sunshine as part of the permit <br />process for the mine water discharging from the Revenue Portal. Wet tests were conducted and the <br />company was allowed to abandon this permit with no further action. The required reclamation was also <br />done, but it was minimal since no new disturbance was made and all disturbance on the site was prior to <br />the rules initiated in 1977. <br />In 2012, Star Mine Operations permitted the re- opening of the Revenue Mine which included a new <br />underground mill to process ore, a new water treatment system to treat the water that was emanating <br />from the mine for 134 years after the Revenue Tunnel connected to the Virginius workings from <br />Governor Basin and the permitting of tailings piles from the mill. This permit was obtained in 2013 and <br />the mine began the construction phase. Throughout 2013, the underground and surface improvements <br />were made, including the construction of the underground mill. In addition, a discharge permit was <br />obtained from the CDPHE for the mine water discharge. This permit would only start when the <br />construction phase ended and the mine went into full operation. As part of the mine discharge permit, a <br />mine water discharge pond was constructed to very specific requirements, including instrumentation to <br />continuously record the discharge flow from the mine. <br />As part of MSHA compliance, a secondary escapeway and extra ventilation was required for activities in <br />the Virginus vein area at the far end of the mine. For this reason, it was decided to drill a raise bore shaft <br />in order to satisfy these requirements. This work started in October of 2014. <br />Page 4 of 17 <br />