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ANSWERS TO LETTER DATED May 29, 2007: <br />I. Exhibit "B" Site Description. <br />a. Under the exhibit you stated that "This is a zero discharge mine". Yet <br />above the statement you said the facility has a Colorado Discharge Permit. <br />If it is a Zeta discharge permit, what is the waste water discharge permit <br />from CDOH&E? <br />Answer: A Waste Water Discharge Permit was obtained in the case of a <br />major precipitation event (very unlikely) were to happen during mining <br />operations to the extent that the retention pond (40'x50'x20'hvould full to <br />such a point that the waters would spill over the natural spillway into the <br />intermittent stream bed to the west of the claimed property. If such an <br />event were to happen, all mining and processing operations would cease <br />operating until the water level dropped below the spillway level naturally, <br />or is pumped intemionally into the intermittent stream bed <br />It is the goal of the Turquoise connection to maintain a <br />STABILIZED purchased water (186,000 gallons from the City of Victor, <br />Co. in 2006) level of 12 feet in depth in the retention pond, until such time <br />as a water use permit can be obtained. All waters in excess of the <br />purchased water level (12ft) will be discharged into the intemtittent stream <br />bed until further notice within the 72 hour time limit All effluent <br />limitations, monitoring req~rirements and other permit terms and <br />conditions of our water discharge permit will be strictly observed. <br />