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12 . We are somewhat confused by the statement that <br /> we have set up a pilot cyanide extraction plant on site . As <br /> already stated , the pilot plant is an intermittently operated <br /> gravity concentration plant utilizing ore, water, and the forces <br /> of nature to treat 100-200 ton bulk samples obtained from the <br /> Company' s exploration properties. We reiterate that no cyanide <br /> is used in the pilot plant. <br /> As stated in the technical revision, cyanide extraction <br /> is an analytical technique used to obtain assay data and verifi- <br /> cation . These are not commercial runs . The cyanide tests are <br /> conducted in a specially designed , environmentally safe area <br /> of the laboratory. The laboratory is capable of obtaining gold <br /> assays by cyanide extraction on approximately 36 fifty pound <br /> samples per week and one sample of between 500 and 750 pounds. <br /> At present, the laboratory is operating far below this capacity <br /> because our field exploration crews are no longer active due <br /> to inclement weather. <br /> we can not emphasize strongly enough that no cyanide <br /> is released into the environment at any time. This point was <br /> apparently misunderstood by Messrs. Saletta and O ' Conner . The <br /> laboratory has no sewer or drain system. All samples are manually <br /> treated with stoichiometric excesses of either ferrous sulfate <br /> or calcium hypochlorite to assure complete destruction of any <br /> residual cyanide. This manual system is used for all samples . <br /> The sample pulp pH is adjusted to 7 . 0 before any sort of disposal . <br /> The large samples are retained in the laboratory for further <br /> analytical test work, and the solutions retained for reuse in <br /> additional tests. <br /> Although we may have errored in not notifying the <br /> Division of the laboratory use of cyanide , we feel that the <br /> precautions taken are more than adequate to show good technical <br /> faith. Not that it makes our situation any more correct or <br /> incorrect but we remind the Division that standard practice <br /> in Colorado for most commercial laboratories is to neutralize <br /> laboratory solutions and to flush them into the municipal sewer <br /> system. <br /> The inspection report states that " ft]he cyanide process <br /> is well designed and is enclosed in the lab building . " We <br /> are pleased that the Division recognizes and appreciates the <br /> effort we have gone through to design and construct a safe , <br /> efficient, environmentally sound laboratory. <br /> ][3 . The Bureau of Land Management (BLM) in an inspection <br /> conducted in September of 1984 expressed concern regarding our <br /> handling of topsoil. Messers. Saletta and O ' Conner reiterated <br /> the BLM ' s concerns in the inspection report . We had agreed <br /> with the BLM to correct this matter and we thank the Division <br /> for reminding us. <br /> 2 <br />