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It is imperative to fully and clearly reach a solution to this outstanding stability issue. Venture Resources has gone <br />far beyond what the Hardrock Rules and statutes require to satisfy the additional requirements asked of us by the <br />DRMS. We have demonstrated through extensive third-party geotechnical laboratory testing the stability and <br />strength properties of the tailings. We contracted professional engineering services from a leading manufacturer of <br />geogrid reinforcing material to provide a design incorporating such material that will significantly improve both <br />static and seismic stability; thereby greatly reducing the risk of failure. <br />We feel that these additional requirements are extraordinary, but Venture Resources has tried to meet them to <br />compromise. We are serious about our business venture and reaching a rational engineering solution. The <br />September 8t1' Second Adequacy Review stated in closing that "the DRMS is highly unlikely to approve hydraulically <br />placed or upstream raised tailings impoundments". We hope this has not prejudiced the DRMS when considering <br />our proposed solutions. The incorporation of geosynthetics into this design brings forth applying the latest <br />technology and proven engineering practice to bolster the stability of these tailings impoundments. Applying this <br />technology should eliminate unfounded fears of failure. <br />We are now preparing a formal- technical revision, addressing the stability-component of the September 8th Second <br />Adequacy Review. The other issues raised in the Review are secondary and will be addressed later. We hope to have <br />that submitted to your office by early next week. <br />Sincerely, <br />Venture Resources, Inc. <br />Ryan J. McHale, PE <br />Vice President <br />cc: Tony Waldron, DRMS <br />Bruce Humpries, Regulatory Permits Management, Inc. <br />Patrick Maher, Venture Resources, Inc. <br />Page 3 of 3