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•~ Ms. Erica Crosby <br />Page 2 <br />October 10, 2002 <br />During the period when the Gold Hill Mill is in Temporary Cessation Status, water <br />from the Times Mine underground storage may be pumped into the tailings pond to cover <br />the pond liner in order to keep the liner from degrading from exposure to the elements. A <br />safe freeboard will be maintained when this pumping activity occurs. ITEC will notify the <br />Division of Minerals and Geology before pumping operations from the Times Mine <br />workings are initiated and when they are completed. <br />3). If the Hazel A. adit is used as a temporary water storage it will not create a <br />discharge. The present rate of groundwater inflow into the Hazel A. adit has not created any <br />discharge of water during the last three years. In the event that the Hazel A, adit is used to <br />store water during mining or milling operations, ITEC will maintain a minimum of six <br />inches of freeboard behind the Hazel A. dam. Before any water is pumped back to the <br />tailings pond, the Division of Minerals and Geology and the Colorado Department of Public <br />Health and the Environment will be notified by ITEC at least thirty (30) days prior to when <br />any pumping operations are commenced. If the Hazel A. adit is removed from a zero <br />discharge site in the pertnit, the Division of Minerals and Geology will be consulted and <br />notified before any change in the status of the Hazel A. adit is made by ITEC. <br />4). If ITEC decides that new trenches are necessary to control erosion on the <br />permitted area associated with the Gold Hill Mill, a technical revision will be submitted <br />detailing the location and dimensions of any proposed trenches prior to their installation. <br />No trenches will be installed without obtaining approval from the Division if Minerals and <br />Geology. <br />Erosion from the downstream face of the tailings pond has not been excessive, <br />because the earthen dam has stabilized. 'The downstream face of the dam now has a <br />sufficient amount of native vegetation growing on it, and this vegetation has helped to <br />stabilize sediment run-off. Because of these developments, ITEC does not believe that a <br />trench will be necessary to control sediment run-off from the downstream face of the <br />tailings pond dam. <br />5). Water samples collected from the tailings pond and the number one monitoring <br />well have been taken, and the results will be forwarded to the Division of Minerals and <br />Geology as soon as they are received from Hazen Research. <br />6). ITEC plans to maintain ongoing maintenance, monitoring and stormwater control <br />during the next year, unless an increase in the price of precious metals allows for a profitable <br />operation at the Gold Hill Mill. <br />