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• III IIIIIIIIIIIII III • Leadville Mining and Milling P.O. Box 552 Leadville, Colorado 80461 (719) 486-3000 Erica Crosby Colorado Division of Minerals and Geology Department of Natural Resources 1313 Sherman St. Room 215 Denver, CO 80203 ~, :,..•- '~r/~F~ arc o Ory~S~0 1~ no,Ml~e~~~G o~~,~ecember3, ]999 Dear Erica Crosby, My name is Scott Hazlitt. I am assuming the duties of mine manager, from Mr. Donald Wilson, for the Leadville Mining and Milling Incorporated (LMMI) properties. Please note that all future correspondance should go to P.O. Box 552 Leadville, CO 80461. 1 am writting in reference to your letter post marked November._4, 1999 regarding your inspection of the property October 26, 1999. I have carefully read your inspection report. On page five you have a list of five items which we need to address. It has been nearly 30 days since our receipt of your letter, and I've been attempting to obtain answers to your requests. The following are explanations of where we stand on the different problems: 1. The Permit needs to be ammended to include the area of surface disturbance which includes the Hunter Shaft. I have not be able to find a copy of our permit application in our files. I will send a location map showing the Hopemore shaft and Hunter shaft and the associated disturbed areas. 2. The mine site permit boundaries have been marked with rock monuments and lathe. Photographs of these markers are attached. 3. The trees which were growing on the tailings pond embankment have been removed. A photograph of the tails pond embankment is attached. 4. Temporary ore piles at the mine site have been taken to the mill. The temporary ore stockpiles at the mill will be processed through the mill as soon as possible. We will make a Technical revision to our permit within the next month. 5. The June 5, 1990 permit had four conditions which need to be met. • I understand that we have an agreement with Bob Elder of Leadville conceming the mill water rights. I have not found a report from the State Engineers Office, and must do additonal research. I have contacted the Colorado Air Quality Control Division regarding an air permit for the LMMI mill. The first sampling of the mill tailings and decant solution were taken this week, and will be analyzed by ACZ Laboratory in Steamboat Springs, CO. I have talked briefly with Carl Mount and Harry Posie concerning the sample requirements. • The surface water diversion channels are on the ground. I have not yet found the backup design calculations and diversion design data.