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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 />Jnly 2s, zoos <br />COLORADO <br />D I V[ g I O N O F <br />MIN SRALS <br />GEOLOGY <br />0.ECLANATION•NINING <br />Bill Owens <br />Governor <br /> <br />Mr. Glen Williams Russell George <br />Executive DireROr <br />Cotter Corporation Ronald W. Cattany <br />P. O. BOX 700 Division Director <br />Nucla, COlOradO $1424 Natural Resource Trustee <br />RE: Notice of Determination That Your Operation, File No. M-1978-116, Also Known as <br />SM-18 Mine, is a Designated Mining Operation (DMO) <br />Deaz Mr. Williams: <br />As a result of a review of your operational conditions, to include pertinent site geology and <br />geochemistry, associated materials being or to be extracted, chemicals and reagents proposed for <br />use or in use, and other applicable file documents, the Division has determined that your <br />proposed-or-existing-operation,-File-No~ M--1978-d-I6~ is-a-Designated-Mining-Operation-(DMO). <br />This determination is made in conformance with the provisions of Rule 7.2 of the Minerals Rules <br />and Regulations of the Colorado Mined Land Reclamation Board. Specifically, the determination <br />that your operation is a DMO is based on the following: <br />The Act at 34-32-103(1) defines "acid or toxic producing materials" as "natural or <br />reworked earth materials having acid or toxic chemical and physical <br />chazacteristics." The results from SPLP tests submitted May 16, 2005 and May <br />23, 2005 indicate that ore and waste rock from the SM-18 Mine have a potential <br />to release metals in concentrations that exceed ground or surface water standazds <br />for aluminum, lead, selenium, uranium and/or zinc. Thus, these rocks would be <br />considered "acid or toxic materials" under the definition. <br />• The Act at 34-32-103(3.5)(a)(II) defines a "designated mining operation" to be "a <br />mining operation at which acid- or toxic-forming materials will be exposed or <br />disturbed as a result of mining operations." Mining will expose or disturb acid-or <br />toxic-forming materials from the SM-18 ore and waste rock. Thus, the SM-18 <br />Mine meets the criteria for a designated mining operation. <br />If you agree with this determination, you are required to notify the DMG by mail of your <br />concturence within 30 days of the date of this notice and proceed to comply with the <br />requirements of Subsection of Rule 7.2.3 of the Hardrock Rules and Regulations. If you disagree <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />