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<br />Permittee Name: DGMC <br />Permit No: M-86-076 <br />` Operation Name: Incas Mine <br />Anniversary date: 12/31/96 <br />D G M C • <br />PO BOX 96 <br />HESPERUS, CO 81326 <br />Re: Addition to comments of 1996 annual report <br />1. The laboratory results of compliance water samples for quarters 2, 3, 4, and 5 will be forwarded in <br />January 1997. The samples are still being processed by Hazen Research, Inc. of Golden, Colorado. The <br />quarter 1 compliance water sample was part of the 1995 annual report. The compliance water samples <br />are part of the amended permit requirement of base line water samples of 5 quarters for both surface and <br />underground water. The 4 remaining quarters of the compliance water samples have the following sample <br />identification: <br />location & number <br />underground water <br />quarter Adit 1 <br />quarter 2 95111301 <br />quarter 3 96010301 <br />quarter 4 96052601 <br />quarter 5 96070601 <br />location & number <br />surface water <br />Lower Compliance <br />IVCI~~.~~~ <br />®F~~PC~ <br />95111302 <br />96010302 <br />96052602 <br />96070602 <br />2. There were no reclamation activities in 1996. There are no reclamation activities planned for 1997. <br />The start of reclamation activities will begin in 1998 as per the phased reclamation plan. <br />3. Mine related roads were graded once during the year. <br />4. No topsoil was moved or stockpiled. <br />5. About 1,000 tons of rock and vein material were moved to expose the highwall on the open cut <br />mining area. This is labeled as the 1995 mining area on the Mining Plan Map submitted with the amended <br />permit. <br />6. The temporary pilot plant for ore processing has been completed enough to test part of the operating <br />parameters. The pilot plant is in temporary building of 8 feet by 10 feet inside dimensions. The <br />containment method for protection from spills is concrete. The floor of the temporary buildings are 6 inch <br />thick reinforced concrete. The walls are 4 feet high by 8 inches thick reinforced concrete. The building <br />structure above the concrete is wood with steel roof and siding. The temporary buildings were <br />constructed to the same building codes as larger permanent structures. There will be more temporary <br />buildings built in 1997 to test other parts of the ore processing circuit. <br />7. The temporary pilot plant for processing ore was operated sporadically for about 60 days starting <br />July 13, 1996. Less than 50 tons of ore were processed. <br />8. Access to the Incas Mine site is controlled by private roads with 2 locked gates to limit access to <br />those individuals with keys. <br />i3o6 Ni« <br />noo nm <br />Incas Mine <br />anrp[-96 \ dgmc 5 12/27/96 <br />