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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />fAX: (303) 832-8106 <br />June 17. 2002 <br />Ron Thompson <br />Basin Resources, Inc. <br />C!o Peak Project Management <br />3800 Co. Road #63.9 <br />Trinidad CO 81082 <br />RE: 2001 Annual Hydrology Report, Golden Eagle Mine, #C-81-013 <br />Dear Mr. Thompson: <br />DIVISION OF <br />MINERALS <br />GEOLOGY <br />RECLAMATION <br />MINING•SAFETY <br />Rill Owens <br />Governor <br />Greg E. Walther <br />Executive Director <br />Ronald W. Cottony <br />Acting Division Director <br />The Division has completed review of the 2001 Annual Hydrology Report (AHR) for the Golden <br />Eagle Mine. Review of our file indicates the Division has not received a response to our review <br />of the 2000 Annual Hydrology Report (letter dated March 16, 2001 to R. Thompson). Please <br />review that letter and our comments below, and provide responses as necessary. <br />2001 Report -Monitoring Frequency <br />Deviations from the required monitoring plan were noted as follows: <br />• The annual water sample required for the constituents listed on page 2.05-47d of the <br />approved permit was not taken for alluvial wells CCAW-1, PAW-5, PAW-6. <br />• Dissolved iron was omitted from the semi-annual sampling of CCAW-1, PAW-5, <br />PAW-6 for both semi-annual samples. <br />• Water level measurements were not taken for GEM-2 for January, March, and April. <br />• Semi annual sampling for the short list as presented on page 2.05-47d of the <br />approved permit was not conducted for GEM-2. <br />• The annual water sample required for the constituents listed on page 2.05-47d of the <br />approved permit was not completed for GEM-2. <br />• One of two required semi-annual field measurements was not taken for GEM-2. <br />Based on severity of the deviations from the approved hydrologic monitoring program, a notice <br />of violation will be taken by the Division (see CV-2002-008, Golden Eagle Mine, #C-81-013) <br />2001 Report - Surtace Water Quantity and Quality <br />Two stations on the Purgatoire River were monitored for flow and field parameters on a quarterly <br />basis until mid-2001, when the hydrologic monitoring plan was modified by Technical Revision <br />#52 (TR-52). PRS-2 is located upstream of all Golden Eagle mining activities and PRS-3 is <br />located downstream of all mining activities. The limited monitoring in the first half of 2001 <br />continues to indicate that no impact to the surface water system is apparent. Total dissolved <br />