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(~~rli~r <br />~ Yw^ <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />RECErn,~~' <br />DIVISION OF <br />MINERALS <br />May 16, 2003 <br />Larry Perino <br />Sunnyside Gold Corporation ~ <br />P.O. Box 177 <br />Silverton, CO 81433 <br />MAY 21 ~ <br />Division of Minorafs aae o~~,uuv <br />RE: Adequacy Issues for Technical Revision No. 26 (TR-2ti) ~ <br />Sunnyside Mine; Permit No. M-1977-378. <br />Dear Mr. Perino: <br />GEOLOGY <br />RECLAMATION <br />MINING•SA FETY <br />Rill Owens <br />Governor <br />Greg E. Walther <br />Executive Director <br />Ronald W. Cattany <br />Acting Division Director <br />On May 1, 2003, DMG received your application for TR-2Ei to the Sunnyside Mine permit. <br />TR-28 addresses the removal of pre-permit tailings from near bank areas of the Animas <br />River and relocation of those tailings to MayFlower Tailings Pond 4. The application was <br />accompanied by check #136287, in the amount of $150. Please find enclosed, receipt <br />#0875 for the application payment. <br />Pursuant to Rule 1.9.1, DMG decision date for TR-26 is June 2, 2003. Please be advised <br />that TR-28 may be deemed inadequate, and may be denied on June 2, 2003, unless the <br />following adequacy review items are addressed to the satisfaction of the DMG. <br />Adequacylssues <br />The application states that pre-permit tailings are in partial contact with groundwater <br />and that removal of the tailings may expose groundwater. Please note that a well <br />permit maybe required from the Office of State Engineer, Division of Water <br />Resources (DWR), for the evaporative loss of the exposed groundwater. <br />Additionally, DWR may require a notice of intent to construct a pond. Pursuant to <br />Rules 3.1.6(1)(a) and 6.4.13, please list all permits, which SGC has obtained or <br />intends to obtain, related to the activities proposed in TR-26. Please contact Jeff <br />Titus, DWR Water Commission at 701 Camino del Rio, Suite 205, Durango, CO <br />81301, phone: (970) 247-1845, email: jeff.titus@state.co.us. <br />2. The application indicates that the pre-permit tailings will be removed from an area <br />previously reclaimed. Previous reclamation efforts included placement of subsoil <br />cap material and revegetation. However, tailings are rising up through the cap <br />material and the previous efforts for revegetation exhibit limited success. Pursuant <br />to Rule 3.1.10(8)(e), the value of the previously placed cap and embankment <br />material appears marginal, at best, for future reclamation purposes. Please clarify <br />that previously placed cap and embankment materials, which have become <br />significantly degraded through contact with the pre-permit tailings, shall also be <br />