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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 />April 6, 2009 V-11, <br />Mr. Matt Collins / <br />Mount Royale Ventures, LLC <br />9145 Sunshine Canyon Drive <br />Boulder, CO 80302 / <br />v <br />? <br />RE: Adequacy Review, Technical Revision TR-06, <br />Cash and Who Do Mines, Permit No. M-1983-141 <br />Dear Mr. Collins: <br />COLORADO <br />D I V I S 10 N O F <br />RECLAMATION <br />MINING <br />SAFETY <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 />The Division of Reclamation, Mining, and Safety (DRMS) has reviewed the above referenced application <br />for technical revision. The following items remain to be addressed: <br />1. Mount Royale Ventures is requesting approval to convey tailing from the Gold Hill Mill to the Cash <br />Mine for disposal into the mine workings. Tailing conveyance facilities, such as pipelines, drop structures, <br />distribution systems, monitoring and other appurtenances must be included in the area of affected lands and <br />fully described and approved in both permits M-1983-141 and Gold Hill Mill permit M-1994-117. <br />Description of the facilities must include designs and specifications. Inclusion of conveyance facilities into <br />permit M-1994-117 will require a technical revision to that permit. If conveyance structures will cross any <br />currently unpermitted land, then an amendment, not a technical revision is required for one or both of the <br />permits. <br />2. The DRMS must determine the representativeness of the materials analyzed for the report titled <br />"Description and Chemical Analysis of Proposed Injectate" included with the TR-06 application. This <br />determination requires, at a minimum, the following information. <br />a. A description of sample collection, preservation, and analysis for the data provided in the table titled <br />"Flotation Tailings Water Analysis - Mill Pond." In particular, for this data to be representative of water <br />that would report to the mine pool following tailing disposal underground, it would have to consist of <br />interstitial water from the tailing leaving the mill. If, as the title to the table indicates, the water analyzed <br />consist of water collected from the mill pond, the samples would not be representative due to comingling of <br />tailing water with water from precipitation. Even so, the dissolved solids concentrations in this water are <br />generally higher than in the Cash Mine pool, which argues against permitting of tailing disposal into the <br />underground workings. <br />b. A description of the representativeness of the TCLP results provided. The TCLP testing was done on <br />tailing produced when ITEC Environmental, Inc. was operating the Gold Hill Mill. ITEC, as part of their <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines