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Mr. Hilgers <br /> Page 2 <br /> July 18, 2016 <br /> 7. The Applicant has proposed to leave the drill hole and collar in place for emergency use at <br /> the Santiago Mine. Pursuant to C.R.S. 34-32-113(5.5)(a), all drill holes sunk for the purpose <br /> of prospecting for locatable or leasable minerals on any land within the state of Colorado <br /> shall be plugged, sealed or capped by the person conducting the prospecting. Please refer to <br /> Hard Rock Rule 5.4.2 and 5.4.3 and describe how you will permanently abandon the drill <br /> hole, <br /> 8. The Applicant has stated the drill cutting will be absorbed into the surrounding talus. Please <br /> commit either spreading the drill cutting to a depth no greater than '/2" or burying them <br /> within an approved pit. <br /> 9. Please explain how the drill pad will be constructed on the existing slope. The description <br /> should specify the volume of material to be moved and should include cut and fill <br /> calculations as necessary. Also, include a description of how the drill pad will be reclaimed. <br /> 10. The Application specifies a 12-ton end dump haul truck will be used for the prospecting <br /> operation. Please describe how the haul truck will be utilized. <br /> 11. Please specify the type of drill rig to be used. <br /> 12. Please describe the anticipated relationship to groundwater and clarify if the drill hole will <br /> penetrate any aquifers or flooded portions of the mine workings. <br /> 13. There may be a reasonable potential for adverse impacts to ground water quality. Please <br /> specify how you will demonstrate the proposed operation will not cause adverse impacts to <br /> groundwater quality and will be protective of the existing and reasonably potential future <br /> uses of the water. Pursuant to Hard Rock Rule 3.1.6(4), the Division may require the <br /> submission of baseline site characterization data, sufficient to ensure that impacts from <br /> prospecting will be detected prior to the initiation of prospecting, including but not limited to <br /> ambient groundwater and surface water quality data sufficient to characterize potentially <br /> impacted waters. <br /> 14. The Exhibit G attachment contains a picture 51h level adit and the Santiago Ore Shoot with a <br /> note which states"Another view of the natural settling pond and approximate distances that <br /> leach ground waters, which will be filtered". Please clarify this statement. Is groundwater <br /> currently discharging from the 51h level adit? If water is flowing from the 5th level adit, where <br /> does it flow to? What is the proximity of the drill hole to the 5th level adit? <br /> 15. The Application states the drill hole will sample the lower 7th level at the 51h level winze. <br /> Please clarify if any portion of the mine working will be drilled through. Also, please submit <br /> a diagram or sketch of the underground working of the Santiago Mine as they relate to the <br /> proposed drilling location. <br />