2022-07-19_REVISION - M1987026 (11)

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Rpp�o.,, Black Obsidian Pit—Permit M-1987-026 �9 L`� 112c Conversion Application (rev 07/11/22) Rule 6.4.4 DIVISION OF RECLAMATION Exhibit D MINING AND SA Mining Plan TY Introduction Current operations consist of a small surface quarry operation contained within a 9.0-acre permitted (110)area;the surface quarry area itself occupies approximately 3.0 acres. Obsidian is the only product that is mined and exported from the site. The known extent of the obsidian deposit being quarried extends beyond the existing quarry area,and extends to a much larger area of land outside the 110 permit. The thickness of overburden lying above the top of the known obsidian deposit ranges from zero feet(i.e., obsidian visible in surface outcrops)to approximately 40 feet deep(as determined through mining and exploratory drilling). In many places the known vertical thickness of the obsidian deposit has been found to be greater than 100 feet. The operator wishes to expand the permitted acreage in order to be able to access and extract additional obsidian deposits for the following reasons:to extend the life of the mine,to increase the annual production of the mine, and investigate additional markets for this unique material. The expanded area will allow an increased rate of production,yet still extend the life of the mine several more decades. In this conversion,the operator wishes to expand permit area and the existing quarry operation onto contiguous land,to the north, east, and southeast. Please refer to the Exhibit C maps,which depict the existing 110 permitted area and 112c permitted area boundaries, and the various areas of proposed activities. The maps depict the existing 110 operation,the expanded 112c operation,and significant structures. The maps show the ownership of surface and minerals,within BLM-managed land and privately-owned (patented) land. There is a 9.50-acre 110 permit adjoining and partially overlapping the proposed 112c expansion of the Black Obsidian Pit. The Lucky VI Quarry(Buffalo Hunter Lode—Sharp Lode) is permit M-2016-015, operator Ed Lyons. Approximately 3.16 acres of the Lucky VI Quarry permit(on the Sharp Lode) lies within the proposed Black Obsidian expansion area, along the southeastern boundary. Please refer to the maps in Exhibit C showing the boundary locations. Colorado Quarries wishes to include this 3.16- acre overlap area in its 112c expansion due to the shallow obsidian deposit present there,which is not a desired commodity for the present operator of the Lucky VI Quarry permit. Colorado Quarries has been in discussion with Mr. Lyons, with the intention of including the 3.16-acre area in the 112c permit, through a release request of the Sharp Lode portion. This partial release request will be filed separately in the near future so that it can be approved and effective upon the approval of the 112c expansion. This 112c permit conversion application is preceded by an approval given by the BLM Royal Gorge Field Office,for the expansion of the obsidian quarry operation onto the specific areas included in this conversion. That approval by BLM includes the legal right-of-entry given to Colorado Quarries for those lands and minerals.