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Gold Hill Mill 3 March 27, 1995 3. It is clear that the affected lands, or permit area that will be required for this operation will extend beyond the Oscar and Good Enough claims that are owned outright by COM, Inc. Apparently 100 percent of the land outside of these 2 claims that will be affected lies on patented claims owned by Mi Vida, or on unpatented claims controlled by Mi Vida. It is the Division's understanding that a milling contract between COM, Inc. and Mi Vida allows access to the portions of Mi Vida property needed for the milling operation. Documentation demonstrating Mi Vida ownership or control of the subject claims, along with pertinent documentation from the milling contract, will be required. Remember to include the right to enter documentation for the Left Hand Creek pumping station and pipeline alignment, and the Time Mine and Hazel A adit. Claim ownership or control information should be available to the public through the county tax assessors office. 4. COM, Inc. has stated that there is currently no legal source of ore available to feed the Gold Hill Mill. It is the Division's view that a permit for the mill can be issued pending location of an ore source, then once the site is stabilized and in compliance with the permit, COM, Inc. would be required to file a Notice of Temporary Cessation under Rule 1.13. Required site maintenance such as road grading, ditch clean-out, and stormwater management would continue during the period of temporary cessation. If an ore source cannot be secured by the time the Notice of Temporary Cessation expires, the site would then have to be reclaimed. Please indicate your concurrence with this procedure. 5. As you know from the Division's February 28, 1995 inspection report, adequate freeboard will have to be established in the tailing impoundment before the Division will approve the Gold Hill Mill application. Freeboard can be provided either by raising the embankment, or by removing tailing from the impoundment. The Division agrees that it would be possible to remove tailing from the impoundment, without damage to the liner, by using a sand pump - as long as diligence and care is exercised while operating the sand intake - but such a system would require some method to re-slurry the consolidated and dewatered tailing. Also, the Division does not believe that such a system will operate anywhere near efficiently enough to remove enough tailing to establish adequate freeboard by the specified deadline. In addition, although the Division would not regulate the disposition of tailing removed from the site for beneficial reuse such as brick manufacturing, we would require verification that a brick plant or other recycling facility is accepting all tailing removed from the site, and that the facility will be responsible for proper disposal or reuse of any tailing that they accept. 6. Under item 6 of the LIMITED IMPACT OPERATION (110) RECLAMATION PERMIT APPLICATION FORM you checked off "In-situ" for type of mining operation. The "In-situ" check-off is for operations that leach or dissolve geologic materials in place. You would more appropriately check-off "Surface". Please provide a new form where this is corrected.