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<br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman 51., Room 215 <br />Denver, Colorado 8020] <br />Phone U0J) 866-3567 <br />FAX: (303) BJ2-8106 <br />DATE: March 21, 1997 <br />II~~~ <br />DEPARTMENT OF <br />NATURAL <br />RESOURCES <br />Roy Romer <br />Governor <br />TO: Mike Long, H, Bruce Humphries, James Stevens, MLRB lames 5. Lochhead <br />Executive Director <br />Michael B. Long <br />FROM: James Dillie Dlvfsinn Direr~nr <br />L <br />RE: Chronology of Events for Possible Out of Containment Discharge (leak) of Cyanide, <br />San Luis Project, M-88-112 <br />The Division was notified on November 25, 1996 (by phone; followed by a letter) (hat after BMRI <br />personnel cleaned out the leach tanks at the San Luis Mine they discovered a few areas in the <br />bottom of two of the tanks (#5 and #7) where welds had sepazated and/or stnall holes had <br />developed. <br />The Division inspected the tanks on December 13, 1996 and confirmed [hat both tanks had <br />developed sizable holes in the bottom. It appeared these tanks had leaked leaching liquids (which <br />generally contain 250-280 ppm cyanide) into the underlying sediments so the Dlvision issued a <br />Reason to Believe letter to the operator on December 26, 1996 for allowing an out of containment <br />discharge of cyanide which is in possible violation of C.R.S. 34-32-124 for failure to comply with <br />the conditions of the approved permit (specifically Section D.5 which states, in padt, that "the mill <br />circuit has been designed as a closed circuit operation with no potential for cyanide solutions in the <br />mill to discharge to [he environment."). <br />Meanwhile, the Division received a letter from Charlie Jaquez on December 20, 1996 where he <br />asked the Division to investigate whether tanks number 5 and 7 were in fact leaking cyanide <br />solution. He stated in his letter that a concerned BMRI employee is anonymously claiming that <br />tanks 5 and 7 have been leaking for over two years and that little or nothing is being done to correct <br />the problem. Further, states Mr. Jaquez, it is alleged that BMRI is covering up thi9 serious matter. <br />Since this letter was addressed to Barbara Green (Board member) Mike responded, mn behalf of Ms. <br />Green, to Mr. Jaquez on December 26, 1996. <br />On December 30, 1996 the Division inspected the site once again. This time a Boil sample was <br />removed from the bottom of tank #7 after the operator cut out a portion of the steel plate. The <br />sample was delivered to the CDOH lab and analyzed for cyanide. The lab result shows 12 ug/g of <br />total cyanide but did not detect any WAD cyanide. <br />On January ]0, 1997 the Division collected a soil sample from beneath tank #3. This sample <br />contained 6.0 ug/g total and 1.4 ug/g WAD cyanide. <br />Both the December 30, 1996 sample from tank #7 and the January 10, 1997 sample from tank #5 <br />were removed from holes that were excavated to about 1 foot. <br />