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~- r <br />(4) The material, being non-toxic, can be put into one of the gravel <br />pits where the gravel has been removed and marketed, and then <br />covered with a thick layer of soil when completed. Or if <br />other procedures are preferable by the Board, we will be glad <br />to comply. <br />The precious metals concentrates then will be processed and sold <br />by another location in Colorado where proper facilities for <br />such exist. <br />(5) The gravel operation of Butala Construction on this site has <br />been operating for years under proper EPA and State permitting.** <br />Copy of same is available in such files or can be had from the <br />Butala Construction Company, of Salida, CO. <br />(6) The reclamation, as described in (4) above, will be in accord <br />with existing permits held by Butala, as well as other procedures <br />as perferable to the Board. <br />(7) WATER: Two sources of water exist at the location: Water in the <br />bottom of gravel pits is available and sufficient spring water is <br />available on the property. However, very little water is required, <br />as the water is not contaminated and also is used over and over or <br />recirculated in the process. <br />Dust will be no problem as the gravel operation is outside the <br />City of Salida, and should present no further problem than the <br />crushing already being done by this operation. <br />The reason that the Gold continues to exist in this slag is that <br />the base metals produced then by the smelter did not require the <br />heat required to melt out the Gold; hence the gold was not removed <br />Your prompt consideration of the above matter will be appreciated. <br />Yours sincerely, <br />M. C. Reeves <br />President <br />**NOTE: Colorado Gold & Silver, Inc. is also <br />now operating on a similar project in <br />shale near Montrose under a permit <br />by the Board and the BLM, and is in <br />good standing. <br />