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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman 5[., Room 215 <br />Denver, Colorado 80203 <br />Phone: (30318663567 <br />FAX: (303) 832-8106 <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />0.EClANATION•MINING <br />SAFETY•SCIENCE <br />February 22, 2006 Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Mr. Mark Steen <br />Ronald W. Cattany <br />MOUnt ROyale VentllTeS, LL~' Division Director <br />P.O. Box 1523 Natural Resource Tnrstce <br />Longmont, CO 80502 <br />RE: Cash Mine -Amendment No. 2, " 2"d Adequacy Review Comments" <br />Permit M-1983-141, Class: Revision, Type-Seq.: AM-2 <br />Dear Mr. Steen: <br />Listed below is a clarification of the status of remaining adequacy review comments on the <br />above-captioned amendment application for the Cash Mine, Permit M-1983-141. This status <br />update is based on Division review of the documents submitted on February 20 and 21, 2006 by <br />Mount Royale Ventures and recent discussions between the Division and Mount Royale <br />Ventures. We note that the decision date for your amendment application is scheduled for <br />February 28, 2006. Therefore, we look forward to a response from Mount Royale Ventures <br />(MRV) at your earliest possible convenience. <br />6.3.3 EXHIBIT C -Mining Plan <br />5. Re: Proposed sampling plan for material pertinent to the Designated Mining Operation <br />(DMO) status determination. The Division is in agreement with the commitments and <br />timeframes proposed by MRV. <br />7. Re: Describe the groundwater gradient within the Cash Mine and in the surrounding <br />area. It is the Division's position that discussion and methods for determination of the <br />groundwater gradient within the Cash Mine and surrounding area will need to be incorporated <br />into the comprehensive groundwater sampling and analysis plan, specified in Item 9 below. <br />8. Re: Characterization of the ambient groundwater quality within the Cash Mine and <br />surrounding area. The Division agrees with MRV's discussion provided thus far of how MVR <br />will maintain the integrity of "ambient" groundwater quality at the Cash Mine for collection of 4 <br />additional quarters worth of baseline data in the midst of planned underground exploration and/or <br />development activities. To complete this discussion, the Division requests that MRV provide a <br />representative cross sectional diagram (or schematic) of the Cash Mine which shows the location <br />of the baseline water quality sampling point and its relation to the Cash Mine shaft and current <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />