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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 28, 2010 <br />George Robinson <br />R Squared Incorporated <br />9034 East Easter Place, Suite 100 <br /> <br /> <br /> <br /> <br /> <br /> <br /> Bill Ritter, Jr. <br />3 Nib Governor <br /> <br />?;; L'i+?' James B. Martin <br />Executive Director <br />Ian C1 <br />x"`? B?sh? <br />Dt <br />ulinir? <br />Centennial, CO 80112 9s <br />RE: Extension to the Decision Deadline? Preliminary Adeq uacY Issues for AM-01 <br />Wildcat Mining Corporation, May_Day?Mine; ermit No. M-1981-185..E--- <br />Dear Mr. Robinson: <br />Herein, all references to the Act and Rules refer to the Colorado Mined Land Reclamation Act, 34-32-101 <br />et seg., C.R.S. (the Act or Hard Rock Act), and to the Mineral Rules and Regulations of the Colorado Mined <br />Land Reclamation Board for Hard Rock, Metal and Designated Mining Operations (the Rules). Copy of the <br />current Act and Rules are available on the Division's web site at www.mining.state.co.us. <br />According to the application for AM-01, the Applicant proposes to incorporate a new portal and mill <br />facility at the Level 1 area, and dispose the mill tailings at an undisclosed location within the underground <br />workings. The proposed milling operation will produce 35 tons of tailings per eight hour shift. The <br />application indicates that sulfide minerals are present and that the mill facility will utilize industrial <br />chemicals, some of which are toxic to aquatic organisms. Permit documents indicate that the <br />underground workings pass under Little Deadwood Creek. The underground workings are flooded but the <br />extent of flooding and the elevation of the mine pool is poorly defined. The disposed tailings, possibly <br />containing acid and toxic producing materials, might drain to the mine pool and/or be in direct contact <br />with ground water. The application identifies a spring, located nearby, which is characterized as drainage <br />from the Idaho Mine. The discharge from the Idaho Mine drains to the La Plata River. The site is located <br />in close proximity to the La Plata River and its tributary, Little Deadwood Creek. <br />Therefore, the application for AM-01 is beyond what the Office considers to be a typical application and <br />must involve additional professional staff in the review process. Pursuant to Rule 1.1(10), the Office has <br />determined AM-01 to be a complex application and, in accordance with Rule 1.4.1(7), has extended the <br />decision date from May 6, 2010, to July 5, 2010. <br />Please be advised that AM-01 may be deemed inadequate and may be denied on July 5, 2010, unless the <br />adequacy review items, listed below and in the attached staff memo from the Division's Geochemist, <br />David Bird, can be addressed to the satisfaction of the Office. The Office considers these adequacy issues <br />to be preliminary. Subsequent to receipt and review of the Applicant's response to these preliminary <br />issues, the Office may identify additional adequacy issues. <br />1 <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction Durango Active and Inactive Mines <br />COLORADO <br />D [VISION O F <br />RECLAMATION <br />MINING <br />SAFETY