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Mr. Thomas A. Schreiner -Page Four <br />January 20, 2006 <br />Amendment No. 2, with quarterly sampling commencing coincident with approval of <br />said Technical Revision. <br />MRV envisions that the Technical Revision will encompass representative sampling <br />locations that would include: (1) underground - 3`tl level winze; water quality <br />parameters; and, (2) surface -Cash Gulch at points upstream of and downstream <br />from the Mount Royale No. 1 Adit; water quality parameters and flow volume. <br />Analytical parameters would include those presented on the attached analytical data <br />sheet. Sampling would occur on a quarterly basis, with reporting also occurring on a <br />quarterly basis with sufficient time allowance for data interpretation and QA/QC. <br />If, at some future date mining activities are proposed to commence at areas other <br />than the Mount Royale No. 1 Adit (Cash Mine}, subsequent Technical Revisions <br />would be submitted to establish baseline ambient underground water quality (as <br />applicable) and to incorporate the added facility into the Water Quality Monitoring <br />Plan. <br />16(a). Re: Design details to support calculation of an "interim" reclamation cost <br />for hydraulic sealing of the Mount Royale No. 1 Adit. <br />MRV had incorporated in the Amendment application a simplistic, dual bulkhead <br />design into the closure plan and cost estimate for the Mount Royale No. 1 Adit. <br />Inasmuch as the Division has indicated that a more technically complex <br />bulkheading system than that proposed may be warranted, MRV will accept a <br />"reasonable and effective" conceptual design and associated cost estimate for a <br />single element bulkhead design prepared by Division for purposes of obtaining <br />conditional Amendment approval and determination of an appropriate interim <br />bonding level. Based on our recent review of bulkhead technical design <br />methodologies and data, MRV is confident that a single, engineered bulkhead <br />can provide an adequate, long-term hydraulic seal. <br />MRV would reserve the right to subsequently conduct a detailed engineering <br />investigation, prepare construction-level design drawings, and obtain cost <br />estimate date for the installation of a single hydraulic seal. Findings would be <br />compiled in an engineering design report for submittal to the Division in <br />consideration of a subsequent adjustment of the previously (conceptually) <br />estimated bond amount. <br />16(b). Re: Status of various shafts, adits, and mine openings referenced within <br />the Permit Amendment Application. <br />The Cash Mine shaft and the Who Do Mine shaft have been utilized for limited <br />underground access subsequent to permit issuance in 1983. Each shaft is <br />equipped with a locked, Yrinch steel plate cover to preclude unauthorized entry. <br />Closure methods are consistent with MSHA safety requirements. Inasmuch as <br />