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Mount Royale Ventures, LLC <br />qW Post Office Box 19754 <br />Boulder, CO 80308 <br />Telephone: 303 517-3740 <br />Fax: 604 605-0009 <br />August 27, 2009 <br />Mr. Allen Sorenson <br />Environmental Protection Specialist <br />Division of Reclamation, Mining & Safety <br />1313 Sherman St. Room 215 <br />Denver, CO 80203 <br />RE: M-1994-117: Inspection Report - Dated 6/12/09 <br />• 4) M1994-117 -Dated 6-12-09, monitoring inspection. Four (4) possible problems <br />identified. <br />Problems and Corrective Actions: <br />PB-1: "Mill tailing discharge to locations outside of the approved pond". <br />Pursuant to the EPA-UIC Class V Injection permit letter, dated January 7, 2008, <br />which the DRMS received at about that time, directly from the EPA, mill <br />tailings were emplaced in two (2) historic shafts (prospect pits) and during a <br />trial stope fill to test feasibility of this process for updating the mining method. <br />It is important to note that these are not "discharges", but rather EPA permitted <br />backfilling activities. <br />MRV notes that the Division was notified of these planned activities in advance <br />via the July 23, 2008 M-1994-117 Annual Report, the AM2 amendment to the <br />M-1983-141 permit and via telephone conversations with past Division <br />employees. It is understood by MRV that the permit record is self-conflicting <br />and MRV began the resolution of this issue with the DRMS earlier this year. <br />•