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<br />IIMMSRMM 28 <br />~n ~ <br />l <br />~~~~ws <br />o <br />yl , <br />e <br />TRANSIT MIX OF 9 <br />PUEBLO <br />November 9, 2004 ~~~~~~°~® <br />Berhan Keffelew NQ~ j o <br />Division of Minerals and Geology <br />Room 215 Division of Minerals and Gealagy <br />1313 Sherman Street <br />Denver, CO 80203 <br />RE: Bonding and pit sealing issue agreement. <br />Pueblo West Pit (M-1977-573) and Pueblo East Pit (M-1986-015) <br />Dear Berhan: <br />On November 4, 2004, a meeting between yourself, representatives of our company, and myself <br />was held to discuss the bonding issues for these two operations. These issues primarily involved <br />the bonding of the sealing of the pits for possible future use as reservoir sites. The primary <br />method being used for this sealing is compacted berm or essentially a compacted berm, but slurry <br />wall construction is also a possibility. It is known that past efforts to build a compacted berm met <br />the standards set forth by the State Engineer, but it is not known, at this time whether subsequent <br />berm construction will meet those standards for leakage. <br />It is anticipated that slope backfilling and construction at the Pueblo West Pit should be <br />completed by March or April of 2005. At that time, testing will be done to determine whether the <br />leakage meets the standards and requirements of the Division of Water Resources. That testing <br />will take approximately three months to complete. At the end of that testing a determination will <br />be made as to the sufficiency of the berm in sealing the pit. If this approach is shown to work at <br />the Pueblo West Pit then the same approach should be applicable to the Pueblo East Pit because <br />soil characteristics are similar, if not slightly better, at the Pueblo East Pit. Once it is determined <br />whether this approach will work or not, a final decision can be made regarding the bonding of <br />each of the pits because the method of sealing has considerable impact on the cost of the <br />reclamation. Thus, it is anticipated that a decision can be made after the testing is concluded and <br />a determination made by the Division of Water Resources as to the adequacy of the sealing. At <br />this time it is anticipated the information required to make that decision should be available by <br />late June or early July. <br />In the meantime, all information provided to and received from the Division of Water Resources <br />regarding this issue will be copied to yourself. This will keep you up to date on the progress of <br />this important determination. Once this determination has been completed, it is expected that a <br />final land use for the Pueblo West Pit can be selected and, if it is not to become a reservoir in the <br />P.O. BOX 857 PUEBLO, COLORADO 81002 FAX (719) 566-0231 PHONE (719) 561-8350 <br />