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<br />GEI Consultants, Inc. <br />6950 Snut6 Potomac Street <br />Suite 200 <br />Englewood, CO 801 I2 <br />May 14, 2004 <br />Project 04193 <br />RECEfVED <br />303~662~OIQ0 <br />303 ~ 662 ~ 8757 F;ix <br />Mr. Dennis Dubbel <br />Senior Project Manager/Estimator <br />MAY 2 0 2004 <br />Givision of Minerals end Geology <br />Envirocon, Inc. <br />651 Corporate Circle, Suite 114 <br />Golden, CO 80401 <br />Re: Longhorn Lake and Sharkey Lake Preliminary Groundwater Evaluation <br />Dear Dennis: <br />Consistent with our proposal dated May 3, 2004, GEI Consultants, Inc. has evaluated potential <br />impacts to groundwater levels resulting from the construction of Longhorn and Sharkey Lakes. <br />The objective of our work was to develop a qualitative assessment of possible impacts to <br />groundwater levels around the property resulting from construction of asoil-bentonite trench <br />around the perimeter of the areas to be mined. <br />GEI performed the following scope of services for this evaluation: <br />• Reviewed and evaluated site plans and geotechnical data provided by Envirocon. <br />• Participated in a site visit. <br />• Participated in a meeting with Envirocon to discuss proposed development concepts. <br />• Based on available data and proposed development concepts, qualitatively evaluated and <br />identified expected changes to groundwater levels around the areas to be mined. <br />• Prepared this letter to present the results of our work. <br />Project Description <br />We understand that it is intended to construct soil-bentonite trenches to support development of <br />"dry" mining sand and gravel deposits with ultimate conversion of the mined areas into lined <br />water storage reservoirs. The soil-bentonite trenches will extend several feet into bedrock. At <br />this time two areas will be mined and developed into water storage reservoirs and we understand <br />that the work will be completed in two phases. <br />• Phase 1 will consist ofconstructing asoil-bentonite trench around the perimeter of <br />Longhorn Lake with subsequent removal of the mined deposits and creation of a water <br />storage reservoir. <br />0419304~05~1Y Pmlvnmary OromJwa~a Evaluaiio~ Offices Nationwide <br />