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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 />~ October 12, 2004 <br />Mr. Lang Perino <br />Reclamation Manager <br />Sunnyside Gold Corporation <br />P.O. BOX 177 <br />Silverton, CO 81433 <br />VIA FACSIMILE (970) 387-5310 and US Mail <br />COLORADO <br />DIVISION O F <br />MINERALS <br />GEOLOGY <br />RECLANATION•NI NING <br />SAFETY•S OIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive DIreLYOr <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />/RE: Access and land use changes: Sunnyside Gold Corporation; Sunnyside Mine; M-1977-378 <br />-~_ <br />Deaz Mr. Perino, <br />The Division has been in contact with Mr. Steve Fealn regazding the Court's recent decision on Gold <br />King's access to water treatment ponds on Todd Hennis' property. We understand that at the hearing on <br />Friday, October 8, 2004, the State district court ordered Mr. Fearn/Gold King to vacate the Hennis <br />property by Wednesday October 13, 2004. I believe you aze familiar with this situation and the decision. <br />Mr. Fearn indicated that he is considering constructing containment on the Gold King property to replace <br />the ponds on the Hennis property, which he says is to be vacated by Wednesday, October 13, 2004. If <br />this occurs, such ponds would be inside the Sunnyside Gold permit boundary. Such ponds, if permanent <br />facilities, might be incompatible with the current approved post-mining land use of rangeland. We <br />understand that construction, if it occurs, could be initiated within days. We also understand from Mr. <br />Fearn that, until the water treatment system is re-configured, it maybe necessary to discharge water <br />directly to Cement Creek after lime addition. Please address the hydrologic balance implications of such <br />a discharge. <br />In addition, please indicate how Sunnyside will address the construction of facilities inside the Sunnyside <br />permit azea. You should contact Mr. Feam for details, as we have not been provided any specific plans. <br />Also, the Division has not received from Sunnyside a response to our letter of October 7, 2004, regazding <br />your right of access to the Hennis property for purposes of reclamation. Please address these issues as <br />soon as possible. <br />If you have questions, please contact Wally Erickson. <br />Sincerely, ~r <br />Harry H. Posey <br />Senior Environmental Pro. ction Specialist <br />Office of Offce of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Su <br />