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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 15, 2010 <br />Tom Cavanaugh <br />BCI Engineers and Scientists <br />12650 W 64th Ave. <br />Arvada, Colorado 80004 <br />Henry M. Carter <br />Nuvemco, LLC: <br />107713200 Road <br />Hotchkiss, Colorado 81419 <br />p,PR 2 6 2410 <br />n cf?ct°n <br />piv4a d <br />Mintng <br /> <br />CGS <br /> COLORADO <br /> DIVISION OF <br />r$ RECLAMATION <br /> MINING <br /> <br /> SAFETY <br /> Bill Ritter, Jr. <br /> Governor <br /> James B. Martin <br /> Executive Director <br />Re: Last Chance Mine, File No. M-2008-012, Permit Application Amendment (CN-01) 112d-1, <br />Expiration of Decision Date. <br />Dear Mr. Cavanaugh and Carter: <br />Per Rule 1.4.1(9) an application review process must be completed within 365 days of being called complete or it may <br />be scheduled for a hearing before the Mined Land Reclamation Board (Board). The 365 day limit for the above <br />referenced application was April 14, 2010. The Division of Reclamation, Mining, and Safety (Division) review of the <br />application has noted four issues that remain to be addressed: <br />a) A more defined radiometric survey of the portal, waste and ore storage area, <br />b) Re-testing of ore and waste pile rocks (geo-chemical analysis), <br />c) An onsite durability test of proposed rip-rap rock, and <br />d) The reclamation liability estimate. <br />Unfortunately, conditions have not been favorable, due to snow cover, to access the mine and obtain the required data <br />and samples prior to the 365 day limit. Therefore the Division cannot approve the application as it stands. However, <br />Nuvemco has scheduled with the Division an onsite visit for April 28, 2010 to address the above referenced issues. <br />Submittal and review of the data and test results from that visit will help establish baseline levels and define final <br />reclamation requirements. Once that is established a reclamation liability can be calculated. Division staff must have <br />this information as soon as possible but no later than June 1, 2010. If submitted on June 1, please be aware there will <br />be no time to address any final issues prior to the Board hearing on June 9-10, 2010. Any outstand issues as of June 1, <br />2010 means the Division cannot support approval of the application before the Board. <br />A review of the permit application history is noted below. <br />Permit Application Chronology: <br />• The Division of Reclamation, Mining, and Safety (Division) received Nuvemco's application for a 110(2) <br />application for the above referenced uranium mine on April 5, 2008. <br />e May 8, 2008 the Governor signed legislation, SB-1161, that changed the status of all uranium mines to <br />Designated Mining Operation status. Nuvemco through its consultant reviewed the regulations, it's proposed <br />mine, and reclamation plans to assess the impacts on the application. <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines