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<br />2. The legal description on the application form and in Exhibit A should be to the <br />Quarter/Quarter section, or NW/4 NE/4. Please revise these accordingly. <br />There is a typographical error in the Legal Description submitted in the conversion <br />application. Apparently the Quarter/Quarter section had not been included. The <br />correct Legal Description should read NW 1/4 of NE 1/4 of Section 34, Township 37 <br />North, Range 10 West. This page will be revised accordingly. <br />xhi B <br />1. Because of the small size and limited production plans for the Neglected <br />operation, no specific restrictions regarding wildlife will be required. However, <br />MDI should identify and secure any areas of the mine which may pose potential <br />risk to wildlife. <br />MDI holds high regard toward the environment and its wildlife. MDI also understands <br />that restrictions with respect to wildlife will not be required, however, MDI will secure <br />any areas which might pose potential risk to wildlife. Such areas will include the tailings <br />pond, the equipment storage area, the chemical storage area, and any other areas <br />posing such a risk. A fence will be installed and placed around the perimeter of the <br />tailings pad. A spill pallet, for chemical storage will be located adjacent to the process <br />on the concrete pad, and the pad will contain a high wall around the perimeter to <br />prevent vandalism, contamination of the soil and nearby Gaines Gulch from unexpected <br />overFlow, and inadvertent contact by wildlife. <br />xhi C <br />Phase I <br />1. Since submitting this conversion application, MDI has provided analysis <br />which demonstrates that the material in the heap leach pad contains toxic levels <br />of cyanide. Please revise the Phase I section of exhibit C to describe how MDI <br />will handle and detoxify this material for final disposal. <br />Based on these analysis, the division could not approve this conversion to a <br />non-DMO status while the heap pad material remains on-site and toxic. However, <br />a conditional approval might be rendered, requiring detoxification and/or removal <br />of the cyanide laden material by a specified date, before the non-DMO status <br />would take effect. This scenario is entirely dependent upon MDI demonstrating <br />that all other aspects of the operation (tailings storage/disposal, waste rock <br />disposal, ore storage/disposal, processing chemicals and processing solution <br />strengths, storage and handling processes, etc.) do not indicate that the <br />Neglected Mine has any of the characteristics described in the definition of a <br />Designated Mining Operation. <br />