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BATES-HUNTER MINE <br />Gregory Gold Producers <br />11438 Weld Co. Rd 19, Ft Lupton, Colorado 80621 <br />970 785-2538 <br />August 9, 2006 <br />Mr. Thomas ASchreiner / <br />Reclamation Hydrologist r/ <br />Division of Minerals and Geology <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Phone: (303)866-3567 <br />Fax: (303) 832-8106 <br />tomschreiner@state.co. us <br />'~M- ~9ao-off/ <br />fas ~~m <br />RECEIVED <br />/AUG 10 2006 <br />Division of Reclamation, <br />~ utulining and Safety <br />Re: Supporting Hydrologic Information for Bates-Hunter Mine Diamond Core Drilling NOI <br />Dear Mr. Schreiner, <br />This memo is intended suppty additional information on the hydrologic conditions present at the Bates <br />Hunter Mine, Central City, Colorado, USA, and to provide a clear description of the procedures to be <br />implemented in case any ground water flow is encountered during diamond core drilling. Excessive flow <br />from the drill collar will be captured in an enlarged sump pit, let to settle and be pumped downhill to the <br />water plant for filtration and purification. <br />The enclosed figure illustrates the generalized hydrogeologic features present at the Bates Hunter Mine <br />and the anticipated relationship of groundwater to the proposed drill locations. As an example, the figure <br />uses the Morning Star drill hole; the other holes will be drilled at the same angle, and will have a similar <br />re~tionship to the ground water table to the example shown on the figure. <br />If any ground water flow is encountered during drilling, the drillers will be instructed to enlarge the sump <br />pit to capture the all the discharge water and oontad mine personal as soon as possible. 1 will monitor <br />the Ph of the discharge water, and nofrfy the Division of Minerals and Geology and the City of Black Hawk <br />within 48 hours of the conditions at the drill site. There already will be a one-inch diameter water line <br />extending from the water plant to the drill rig to provide drilling water. Once the discharge water settles a <br />little, we can use the same water line to run the discharge water bads to the water plant for treatment <br />Any and all waters that are treated in our water plant will be brought up to the drinking water standards <br />specified in the Bates Hunter Disdtarge Permit before being albwed to flow into the creek in Gregory <br />Gulch. <br />The dedicated employees of the Bates Hunter Mine, Wits Basin Precious Minerals, Inc. and G & O <br />Diamond Drill Contractors Ltd. take all regulations very seriousty and are dedicated to running a clean <br />operation. <br />Sin re <br />Brian Alers <br />Project Geologist <br />Bates-Hinter Mine <br />(303) 582-3352 Mine <br />(303) 258-7242 Home <br />smu eelerexpna~ahoo.com <br />and Chris Otten <br />Bates-Hinter Mine Superintendent <br />(303) 582-3352 Mine <br />(720) 936-5878 Cell <br />huntereold(a~msn.com <br />