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STATE OF COLORADO' <br />DIVISION OF RECLAMATION, MINING AND SAFETY <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 />January 20, 2009 <br />Harold Luzar <br />? Mine Development, Inc. <br />319 E. 4th Ave. <br />Durango, CO 81301 <br />?1'VLD <br />,IAN 2 2 2009 <br />Division of Reclamation, <br />Mining and Safety <br />COLORADO SSg <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SA FETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />V/ V I? ? <br />Re: Neglected Mine, Permit M-1981-165, Technical Revision (TR-3) Approval, and Notice of <br />Bond Increase. <br />Dear Mr. Luzar, <br />The Division has reviewed the final adequacy responses for the above-named technical revision, which <br />were received at this office on January 8, 2009. These final responses were found to be adequate and <br />sufficient to meet the requirements for approval of the revision to install and implement a pilot ore <br />processing procedure. Technical Revision TR-3 was APPROVED by the Division on January 16, <br />2008. In addition to the permit's existing approved mining and reclamation plans, there are parameters <br />that must be adhered to during the pilot ore processing procedure, which are listed in the following <br />paragraphs. If any of these interpretations are incorrect, please contact me. <br />The pilot project is approved for "small scale" testing of a different ore processing procedure, as <br />described in the revision. If the operator wishes to process ore on a larger scale than that approved <br />under this revision, or already approved as part of the permit, the operator must apply for another <br />revision to the permit. <br />The procedure will utilize several common chemicals, some of which are toxic but, due to the limited <br />scale of the pilot procedure, are not defined as "designated chemicals" pursuant to Rule 1.1(13) of the <br />Hard Rock/Metals Rules and Regulations. This revision does not change the permit to a Designated <br />Mining Operation (DMO). If the operator wishes to use or store different chemicals or in larger <br />amounts than described and approved under this revision, or already approved as part of this permit, <br />the operator must apply for another revision to the permit. <br />The ore processing will not be performed in the existing mill building, but in the "supply and <br />equipment storage area" as labeled on the permit maps, located east of the lined tailings pond. Prior to <br />the installation of any processing equipment the area to be affected must be properly graded, <br />compacted, and lined, according to the details in the revision. The operator should document the site <br />preparation and liner installation, and provide the actual as-built drawings and photos. If the operator <br />wishes to process the ore in a different location, or prepare the approved location in a different manner, <br />the operator must apply for another revision to the permit. <br />Office of . Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines