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STATE OF COLORADO <br />/, DIVISION OF MINERALS AND GEOLOGY <br />.. Departmeo[ of Natural Resources <br />1313 Sherman 6t., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: 13031 832-8106 <br />January 18,2006 <br />r: ~ <br />Lance Barker <br />Au Mining, Inc. <br />PO Box 821 <br />Lake City, CO 81235 <br />Kye Abraham <br />Ll{A International, Inc. <br />3%24 47°i Street Ct. NW <br />REC~~V ED <br />JYU, 2 ~ ZU{IY <br />Division of Minereis end 6noio6Y <br />COLORADO <br />DIVISION OF <br />M[N&RALS <br />GEOLOGY <br />RECIAM gTION•MINING <br />SPrETY'SC IENCF <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trus[ee <br />Gig Harbor, WA 98335 <br />e9 <br />Re: Golden Wonder Mine, Permit M-1978-091 UG, DMG Response to Operator's Statements of Problem <br />Correction (Inspection Date 10/18/OS)l. ~"~ <br />Dear Mssrs. Barker and Abraham, <br />This letter is addressed to both of you since you have each independently submitted problem resolution responses to <br />they same problems, and it would seem best that all parties are aware of how the problems are being addressed. Mr. <br />Abraham's response was received at this office on 12/27/05 and Mr. Barker's response was received at this office <br />on 112106. <br />Item #1 - Untatped Ore Pi]e <br />Mr. Barker stated that most of the ore was shipped offsite in November but the residual the ore pile was tarped for <br />the winter. Mr. Abraham committed to ensure that Au Mining would keep the ore pile tarped when the pile was not <br />being accessed. Together, these statements constitute an adequate response. This problem is considered corrected, <br />as long as these practices are followed. (The operator is reminded that the problem was originally cited when DMG <br />observed untarped ore at a time when there was no communication with the operator, and it was not known if the <br />site was shut down for a week, a month or the winter.) <br />In his response to DMG, Mr. Barker questioned the need to tarp the ore piles, if they were to be onsite for less than <br />180 days, especially if the Environmental Protection Plan (EPP) did not expressly require such tarping. The EPP <br />does not say that "ores shall be tarped." However, the tarping of ores has been discussed onsite between DMG and <br />Au Mining in 2003 and 2004. Besides the operator's need Co tarp the ore so that it is fairly dry to allow better <br />crushing and handling, there is a geochemical need to keep the ore tarped. The type of ore at this mine is known to <br />be an acid generating material. This office does not argue the fact that under most circumstances, all ores are <br />present onsite for less than 180 days, but the ore stockpile and handling areas are used continually, on an unlined <br />pad. If untarped, the ores are subject to contact with meteoric water, weathering and subsequent leaching. With <br />such a material onsite, it is the operator's responsibility to minimize the acid-generating potential, and one method <br />is to prevent stormwater from reacting with the mineralized material. Rules 1.1(1), 1.1(15), and 3.1.6(1) variously <br />define and explain the potential for problems and the need for good onsite protections. <br />Since the ore is known to present the potential for significant problems from acid generating, the operator is <br />additionally referred to a commitment made in the EPP, specifically that "new protocols will be implemented." <br />,, <br />(`µ'. <br />1V . <br />Office of Office of Colorado <br />Mined Land Reclamation Arrive and Inactive Mines Geoloeical Survey <br />