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MountRoyaleVenturesCashMineHydrology AdrianBrown <br />4. WATER MONITORING PLAN <br />4.1 DRMS Request <br />63.3 EXHIBIT C - Mining Plan, Section 9: Water monitoring plan to verify that future mining <br />operations have minimized any potential. impact to surface and groundwater quantity and quality at the <br />Cash Mine, Who Do Mine, Mount Royale Mine, and surrounding areas. <br />The Division is in agreement with MR Vs proposal and timeframe for submittal of a. comprehensive <br />groundwater monitoring. plan. The Division will be reviewing such plan to ensure that it meets the <br />minimum requirements of Rule 3.1.7(7). As specified in Item 7 above, the groundwater monitoring plan <br />will need to include provisions for determination of the groundwater gradient within the Cash Mine and <br />surrounding area. Please respond. <br />4.2 MRV Response <br />The MRV Groundwater Monitoring Plan will be prepared and presented within 60 days of the submittal <br />of this report. <br />At a minimum, the groundwater monitoring plan will comprise quarterly measurement of ground water <br />level and water quality at three locations in the vicinity of the Cash Mine. These locations will represent <br />upgradient, downgradient and mine waters. Possible locations are shown in Figure 3. <br />The information collected will allow determination of water gradient in the vicinity of the mine, and will <br />allow monitoring of ambient water quality in and around the Cash Mine.. <br />5. MINE RECLAMATION <br />5.1 DRMS Request <br />63.3 EXHIBIT C -Mining Plan, Section 16 Re: Design details to support calculation of "interim" <br />reclamation cost for hydraulic sealing of the Mount Royale No.1 Adit. <br />It is the Division's understanding that MR V's is not in agreement with the reclamation costs for <br />installation . of two (2) hydraulic seals within Mount Royale Adit #1 as specified by Allen Sorenson (of <br />the Division) in Mr. Sorenson's February 21, 2006 memo to Tom Schreiner. It is also the Division's <br />understanding that MRV intends to submit construction-level design drawings and cost estimate data for <br />the installation of a single hydraulic seal. Please note that the future submittal will need to provide a <br />discussion of the basis for one (1) seal vs. two (2) seals originally proposed by MR V. Also, the Division's <br />engineering staff will require a minimum of three (3) working days to review the future proposal for I <br />hydraulic seal. MR V's. proposal should adequately describe and ensure that the Mount Royale Adit #1 <br />will remain a "zero" discharge facility during final reclamation. The Division also notes that the <br />operator.(MRV) will be required to obtain an NPDES Water Quality Discharge Permit from the Water <br />Quality Control. Division, Colorado Dept of Health in the event of any discharge from the Mount Royale <br />Adit #1 at any time during mining and/orfinal.reclamation. <br />1601A-20060911 5