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~ -~ <br />.;;~or_ .. ,. <br />~.; <br />'''IDAI~AI~c) <br />.. <br />P.O. BOX 584 311 MAIN OURAY, COLORADO 81427 <br />PHONE 970-325-4482 FAX 970-325-4481 <br />July 12, 2005 <br />Mr. Bob Oswald <br />State of Colorado / <br />Division of Minerals & Geology ~/ <br />Durango Field Office <br />701 Camino del Rio, Room 125 <br />Durango, CO 81301 <br />Re: Idarado Mining Compan~ <br />CMLRB Permit 77- 403 <br />Idarado Legacy Development Materials Characterization <br />Dear Mr. Oswald: <br />T c. ~ . <br />cto, bhp <br />v JUL 2 0 2005 <br />Oivisian ni ia,,,_, <br />Enclosed is a Technical Memorandum prepared by MFG, Inc. presenting a materials <br />geochemical characterization of soil materials removed from the Idarado Legacy <br />Development Project in Telluride. The identified materials were comprised of native <br />alluviaUcoalluvial soils, tailing materials from the historic Pandora Mill operations used <br />to bed buried infrastructure facilities within past company residential areas, and Pandora <br />portal development (waste) rock used as roadway construction materials in the same <br />development azea. The above defined materials were excavated from the historic Pandora <br />residential area and transported to the permitted stockpile location at the Pandora Mill in <br />accordance with the Technical Revision submitted and approved summer 2004. As <br />discussed in the attached presentation approximately 40,000 cubic yazds of the identified <br />materials were excavated and transported during the period May 2004 through December <br />2004. <br />Due to the manner the tailing and waste rock materials were previously placed within the <br />Pandora site, selective excavation and removal of the mine materials was not possible. <br />Therefore, the excavated, transported and stockpiled materials placed to the permitted <br />stockpile is a blended composite of the native and mine related materials removed. Since <br />selective excavation and stockpile placement was not possible, the presented materials <br />geochemistry is a representative placement within the stockpile. As shown with the <br />presented geochemical data, the excavated and placed materials demonstrate very low <br />acidic characteristics and the vast balance of the materials demonstrate a net alkaline <br />condition. <br />Since completion of the 2004 materials removal activities, excavation and stockpile <br />materials placement has commenced with development properties associated with the <br />Liberty Bell development site. As completed with the Pandora site, materials excavated <br />