2003-05-19_REVISION - M1977378

• Permit No: M1977378
• IBM Index Class Name: Revision
• Doc Date: 5/19/2003
• Doc Name: Response to Amendment
• From: Todd C. Hennis
• To: DMG
• Type & Sequence: AM5
• Media Type: D
• Archive: No

.~
Salem Minerals Inc.
P .O. Drawer I
611 Water St.
Silver Plume, CO 80476
Tel. [phone]
Fax [phone]
Colorado Mined Land Reclamation Board
Division of Minerals and Geology
L313 Sherman Street
Denver, CO 80203
REC~'vE~
MPS ~ 9 Z~03
o`v`stoo at Mtoeta\s and Leo\o9~
May 16, 2003
Re: Proposed Amendment to Mined Land Reclamation Permit M-77-378 American Tunnel
Gentlemen:
In response to notification of a proposed amendment to Permit M-77-378 American Tunnel from
final use of rangeland to industrial, we wish to point out the following:
]. We own the Ixion Placer, and Black Cat patented lode claims in close proximity to the subject
Mined Land Reclamation area.
2. The permittee has contracted to transfer title to the Herbert Placer to San Juan Corp., which has
agreed to lease a portion of i[ to Gold Mines Corp. for the continued use of the water treatment
plant and water treatment plant settling ponds by Gold King M[nes Corp. for mining purposes,
specifically for treating the water from the Gold King Mine and the building area will be used as a
mining equipment repair base area. The lease to Gold King Mines Corp. is recorded as Reception
No. ]42219 dated Nov. 19, 2002 in the San Juan County records.
3. The proposed operator of the water treatment plant and/or owner of the Gold King mine
property may lack the financial capacity to insure the removal of precipitates off the Herbert
Placer property, reclaim the settling ponds, and reclaim the other permitted areas over the long
term. WE OBJECT TO ANY PROPOSED CHANGE THAT WOULD REMOVE BONDING
REQUIREMENTS ON THE SUBJECT PROPERTY, OR LEAVE BONDING AT SUCH A
LEVEL AS TO BE INSUFFICIENT TO RECLAIM THE MINING OR MINING RELATED
ACTIVITIES ON THE ENTIRETY OF THE SUBJECT PROPERTIES. We are also concerned
with potential petroleum product leakage or potential hazardous substance spills should the area
continue to be used (as planned) as a base for mining operations.
4. We do not object to the buildings remaining on the subject properties, and in fact deem this
advisable, if the Herbert Placer water treatment settling ponds are reclaimed as now required.
5. The continuation of MLRD bonding on the subject area at a level sufficient to reclaim all of it as
now required, especially if Gold King Mines Corp. lacks financial capacity, is crucial to the
post-mining economic development of Silverton and San Juan County as the continued soil
disturbance and stotmwater runoff from the mining activity will impact the operation of the
adjoining areas leased to Core Mountain Enterprises for the operation of the Silverton Mountain
Ski Area within 200 feet of the permit area. Once mining activities are completed, the impacted
bare dirt slopes need to be re-vegetated in some form and the settling ponds reclaimed. San Juan
Corp. has already starting re-vegetating the non- leased area of the Herbert Placer.