PERMFILE128179

• Permit No: M2006031
• IBM Index Class Name: Permit File
• Doc Date: 1/10/2007
• Doc Name: Additional Adequacy Comments
• From: DRMS cmr
• To: Steel Rose, Inc.
• Media Type: D
• Archive: No

STATE OF COLORADO
DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
January 10, 2006
Daniel Sier
Steel Rose Inc.
5521 Majestic Dr.
Colorado Springs, CO 80919
RE: Additional Adequacy Comments for Steel Rose Inc., 110(2) Limited Impact
Operations application (NI-2006-031)
Dear Mr. Sier,
COLORADO
DIVISION OF
RECLAMATION
MINING
- &-
SAFETY
Bill Owens
Governor
Russell George
Executive Director
Ronald W. Cattany
Division DirecYOr
Natural Resource Trustee
Listed below is an additional adequacy review issue for the Steel Rose Inc. application for the
110(2) Limited Impact Operations (M-2006-031). The 365 day deadline and current decision date
is on May, 9 2007. All adequacy issues must be resolved by that time in order to be issued a
permit for this mine site.
The primary mine commodity listed in the permit application is gold. Gold is often associated
with pyrite and other sulfide minerals. These minerals when exposed to air and water can result in
acid rock generation (aka acid mine drainage). According to the Hazd Rock Metal Rules any mine
where (a) designated chemicals used in metallurgical processing are present on-site; or where (b)
toxic or acid-forming materials will be exposed or disturbed as a result of mining operations; or
where (c) acid mine drainage occurs or has the potential to occur due to mining or reclamation
activities (Rule 1.1.14) need to be permitted as a Designated Mining Operations (DMO).
Designated Mining Operations have additional regulatory requirements beyond those of non DMO
operations. This includes at a minimum the development, approval, and implementation of an
Environmental Protection Plan for the protection of human health, property or the environment.
Based on the site inspection and follow-up conversations none of these three conditions appeaz to
be present, but because of the significance of the regulations that govern DMO's, the Division is
requiring the Applicant to submit sufficient information to demonstrate that none of the three
conditions listed above exist or will exist at the proposed site. The Division will review the
Applicants subsequent submission(s) and determine if the Steele Rose 1 proposed mine meets the
designation of a DMO or not (Rule 7.2.1). Information about DMO's and an example DMO
determination were provided to the Applicant's representative on January 9, 2007.
Please feel free to call me with any questions or if I can be of any assistance with this application
process(303-866-4922).
Office of Office of
Mined Land Rxlamation Active and Inactive Mines