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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 />July 8, 2010 <br />COLORADO <br />DIVISION Of <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Mr. Gus Gaviotis Mike King <br />Cott=-rpOmfiQn Executive Director <br />7800 E. Dorado Pl., Ste. 210 Loretta E. Pineda <br />Englewood, CO 80111 Director <br />Re: Schwartzwalder Mine, Permit No. M-1977-300, Partial Approval for Technical Revision No. 12 <br />Dear Mr. Gaviotis: <br />On 08 July 2010 the Division of Reclamation, Mining and Safety issued a Partial Approval for the Technical Revision <br />TR-12 application submitted to the Division on 01 June 2010, addressing the following: <br />Re-initiate pump and treat at Sump no. I and re-initiate mine dewatering and treatment <br />The terms of Technical Revision No. 12, as approved by the Division, are hereby incorporated into Permit No. M-1977- <br />300. All other conditions and requirements of Permit No. M-1977-300 remain in full force and effect. <br />With the partial approval of TR-12, the Operator is authorized to proceed with the re-initiation of pumping and treatment <br />of Sump no. 1 water, including the construction of appropriate treatment and support structures, incorporating also the <br />interim treatment measures approved under TR-13. The re-initiation of mine dewatering and treatment remains in dispute <br />and will be brought before the Mined Land Reclamation Board at their monthly meeting on July 12, 2010. <br />The current financial warranty for this permit is $109,082.52. The additional reclamation liability amount for this revision <br />has been determined to be $2,173,000, which is based on treatment of Sump no.l for a period of 5 years from 31 July <br />2010. Until the Operator can provide written confirmation that a bond is in place for those portions of the facility that will <br />be permitted and bonded with the Colorado Department of Public Health and Environment under the Radioactive <br />Materials License, the Operator must also provide that portion of the financial warranty to the Division. <br />Therefore, the new reclamation liability amount for this site is $2,282,082.52. The additional financial warranty can be <br />provided by submitting a rider to the existing financial warranty or by submitting a separate financial warranty in the <br />amount of $2,173,000. The additional financial warranty must be provided within 60 days from the date of this letter or <br />prior to initiating the activity approved under this Technical Revision. <br />You may contact me with questions at 303-866-3567 x8108. <br />Sincerely, <br />r <br />David Bird <br />Reclamation Specialist <br />cc: John Hamrick <br />Randy Whicker <br />A o On Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines