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BRIEF DISCUSSION OF AMENDMENT <br /> On June 2, 2020, Division of Reclamation and Mining Safety(DRMS)personnel performed a site <br /> inspection, and conducted a follow-up on July 15, 2020. On August 19, 2020, the Colorado Mined <br /> Land Reclamation Board(CMLRB)found the Operation in violation of C.R.S. 34-32-124 for failure <br /> to comply with a permit. The CMLRB ordered that the Operator file a Technical Revision within <br /> fifteen days of mailing of the Order to propose a plan to appropriately dispose of xanthate and <br /> flotation concentrate currently stored on site, and to either excavate and haul uncharacterized mill <br /> tailings off-site to an appropriate disposal, or have a third party sample and characterize the mill <br /> tailings to determine if they can be left in place. Second, the Order required that Operator file an <br /> Amendment Application updating the Mine Plan and Environmental Protection Plan to describe <br /> current and proposed mining and milling activities at the site. <br /> The operator immediately contacted professionals and began site investigations and testing of those <br /> materials that had been identified by DRMS personnel. The testing found that the regulated metallic <br /> elements remaining in that material identified by DRMS met all normal U.S. Environmental <br /> Protection Agency(EPA) and Colorado Department of Public Health and Environment(CDPHE) <br /> standards for all metals of concern, with exception of arsenic. Since arsenic concentrations in <br /> Colorado tend to normally be elevated above the EPA regulatory levels, CDPHE recognizes this and <br /> sets an elevated level that corresponds with the natural background levels. The testing found that the <br /> material contained either similar concentrations, or even reduced concentrations of arsenic as <br /> compared to the sampling that was conducted on nearby rock outcrops within the permit areas. <br /> Investigations were also begun on residual xanthate. Xanthate is a simple organic compound, and <br /> since neither the EPA nor the CDPHE consider xanthate to be a hazardous substance or a hazard to <br /> the environment, no standardized or government approved standardized tests have ever been <br /> developed to test for it. In conjunction with CDPHE and private laboratories, the consultant <br /> developed a test specifically to satisfy the CMLRB order. The testing found no detectable <br /> concentrations of xanthate in the processed sand that had been placed on the waste rock pile, nor did <br /> it find any in the evaporated residue that remained from the original operating fluids that were <br /> identified within the mill circuit during the previous DRMS inspections. This result was predictable, <br /> since the xanthate concentrations used for processing were very low to start with, the compound <br /> would be expected to be retained with the product produced by the mill, and typical of many small <br /> organic molecule,it tends to naturally rapidly degrade. These results were reported to DRMS via a <br /> letter report produced by Braun Environmental, Inc., on October 30, 2020. <br /> In an Adequacy review dated November 13, 2020, Elliot Russell of DRMS requested additional <br /> information on the following: <br /> 1 Xanthate storage; <br /> 2 Disposal of xanthate residue from evaporated process water; <br /> 3 Information concerning transport of flotation concentrates off-site; <br /> 4 Plan for handling mill tailings; <br /> 5 Collection of background samples for arsenic, and; <br /> 6 Additional testing acid based accounting of tailings materials. <br /> In response to the review, additional sampling and testing was then performed to address these <br /> comments, and upon receipt of the results from the laboratory, Braun responded in a letter report to <br /> 1 <br />