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<br />our permit application. Our map MLR-1 shows the existence <br />of a small draining channel into the area in which we <br />propose to construct the tailings disposal site. This <br />drainage has in the past only exhibited light flows of water <br />during rapid snow melt conditions or during heavy rains. It <br />is itself probably the result of a naturally occurring <br />25-year, 24-hour storm since no evidence exists that it may <br />have been manmade. Our proposed rechanneling of this <br />drainage is shown on the Mill Site Reclamation Plan, Map - <br />MLR-3. <br />This area is geologically defined as old lake beds. It is <br />well described in U.S.G.S. Professional Paper 148 by Emmons, <br />Irving & Laughlin, 1927. Our proposed tailings disposal <br />area is underlain by thick lenses of highly impervious silty <br />clay with enclosed, thin, dense sand beds with occasional <br />pebbles. <br />Communication with the Colorado State Engineers, Ground <br />Water Section, indicates the first known aquifer in this <br />area to be 80 to 100 feet below surface. This data is based <br />on well logs of the nearest water wells to our mill site. <br />C. The only geochemical testing data known to us is what <br />has been provided in the report by CTL/Thompson, Inc. We <br />have no objection to collecting a tails sample and a decant <br />solution and having them analyzed for acid base potential, <br />pH, Pb, Zn, Cu, Cd, As, N, Ag, A1, and Mn as requested in <br />your letter of May 29, 1990. <br />D. Since the permeability rates described in the <br />CTL/Thompson, Inc. report indicate the determined <br />permeability rates over the majority of the proposed <br />tailings disposal site to be as low as 2 to 7 feet per year, <br />we do not think a synthetic liner to be necessary. Some <br />discretion is warranted regarding our proposed excavation of <br />the material to be used for the tailings impoundment dam in <br />order that areas less impervious remain unexcavated. <br />Compaction recommendations as recommended by the <br />CTL/Thompson, Inc. report are intended to be followed if <br />necessary. <br />E. 8 F. Our mill site property is shown on the copy of a <br />portion of the Leadville South Quadrangle Map - Scale <br />1:24000, 1969 issue, found in Exhibit E of our original <br />application. <br />This data indicates our property to be slightly over three <br />miles from the Yak Tunnel. The California Gulch Drainage is <br />approximately, at its closest point, about 1000 ft. from the <br />nearest part of our tailings disposal area as proposed, and <br />at an elevation of about 20 ft, lower. <br />