2017-02-03_REPORT - M2012032

• Permit No: M2012032
• IBM Index Class Name: REPORT
• Doc Date: 2/3/2017
• Doc Name: Annual Report Due Date Extension Request
• From: Ouray SIlver Mines Inc.
• To: DRMS
• Annual Report Year: 2017
• Email Name: THM
• Media Type: D
• Archive: No

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OLJRAY .SILVER MnEs
February 2, 2017
VIA U.S. Mail and Email
Colorado Division of Reclamation, Mining, &Safety
1313 Sherman Street, Room 215
Denver, CO 80203
On behalf of Ouray Silver Mines Inc. (OSMI) please find the attached annual report for 2016, submitted
in accordance with the Department of Reclamation, Mining, and Safety(DRMS) Permit No. M2012032.
In addition to the discussion presented in this letter, please find the following included in this
submission:
• the annual report form and annual fee payment
• required map
• groundwater quality monitoring table with all results
• underground water quality monitoring table with all results
The Revenue Mine (Mine) remained in a period of reduced activity in 2016. While no ore was processed
in 2016,waste rock was removed from the underground workings to widen restrictive passages and
create additional working space. In early 2016,a drilling campaign was executed in support of a
prefeasibility study. Passage enlargement proceeded through the fall and winter as recommended in the
prefeasibility study. OSMI continues to haul waste rock in 2017 as we work towards full production.
Because of limited activity, reductions in sampling requirements were granted on November 13, 2015
allowing for no additional sampling at GW-1A and GW-16 until the Atlas Tailings Facility area is
disturbed. In the same communication, DRMS agreed to an annual sampling frequency at stations UG-1,
UG-4, and UG-5 because the Mine is not in full production and no sampling at UG-2 and UG-3 because
no work is planned, nor has work occurred, in the Atlas and Cumberland drifts.
2016 groundwater results were within permit limits with the exception of one chloride result in well
GW-2A during the November 10, sampling event. Chloride was detected at 2.1 mg/L, above the permit
limit of 2 mg/L. OSMI has since determined that the chloride standard was inappropriately based on
residual chlorine standards and that the chloride permit limit is within the margin of error for common
analytical methods. Based on these facts and discussion with DRMS(December 6, 2016)a second
sample was not taken. Details can be found in OSMI's December 27, 2016 letter to DRMS.Additionally,
there is no agricultural chloride groundwater standard;therefore, OSMI has recently submitted a
technical revision which requests a 250 mg/L drinking water standard for the permit. GW-1A and GW-16
were not sampled in 2016 based on the sampling reduction granted by DRMS.
PO Box 564, 1900 Main Street, Unit 1, Ouray, Colorado,USA 81427
Tel. [phone]—Fax. [phone]