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will progress until a slimes fraction consolidated density of 109-111 lbs/ft3 is reached with a corresponding optimum <br />moisture content of 14%-16%. At this stage, evapotranspiration will sufficiently provide for a natural return to a <br />hydrologic balance in this semi-arid clime. A conservative analysis can be approached assuming that the pan <br />evaporation rate (averaging 38 inches annually) is less than the effects of evapotranspiration. Evapotranspiration <br />takes into account effects of evaporation plus the consumptive use of water by vegetation. Understanding this, there <br />is a net "drying" effect within the tailings impoundment once operations have ceased, ponded surface process water <br />is eliminated and vegetation has been established. A cap/cover to prevent precipitation infiltration will not be <br />necessary. See Exhibit C, 6.3.3(2)(b), Table 1- Tailings Impoundment Water Balance. <br />Pre-Existing Abandoned Mine Waste Rock Piles: <br />Within the affected area of the Tailings Impoundment there are pre-existing abandoned mine waste rock piles (see <br />maps in Exhibit E for location). This material has been in place for many generations, dating back to the late <br />1800's. It is with every intention Venture Resources Inc. plans to process and render this material nearly inert as <br />previously discussed in the Mining Plan of Exhibit C. <br />However, in the event that these operations are forced to cease prematurely for reasons beyond our control, Venture <br />Resources Inc. shall not be responsible for reclamation of pre-existing abandoned mine waste rock piles that we <br />have not disturbed during the course of these proposed operations. <br />In the unforeseen event that the DRMS moves to forfeit the reclamation bond ... forfeited bond monies are not to be <br />used for reclamation of pre-existing abandoned mine waste rock piles and/or conditions that were undisturbed <br />during operations. The mining and reclamation plan describe an incremental approach to operations. The new <br />Tailings Impoundment is to be installed in an area where there are pre-existing waste rock dumps. This can only be <br />done in such a way that sufficient space is made by removing a portion of this pre-existing waste rock material so <br />that a new zone of impoundment liner can be installed. In light of this, any partial excavated pre-existing waste rock <br />will be directly next to the next incremental section of liner. In the event of bond forfeiture, this partially excavated <br />pile will not pose any significant problems. These partially excavated zones shall be graded no steeper than 2H: IV <br />and revegetated so that there are no unstable situations or erosion problems. <br />This is one premise that led Venture Resources to petition the CO Mined Land Board for clarity on whether or not <br />this cleanup activity is or is not a "mining operation" as defined by Mineral Rules and Relations for Hard Rock. <br />Metal and Designated Mining Operations, Rule I -Definitions. Ultimately the Board ruled that our proposed <br />operations is a "mining operation", or more accurately "re-mining", and that is why this application is being made. <br />We were given assurance that pre-existing conditions would not be a negative factor in this process - it just needs to <br />be restated. <br />6.3.4(2) <br />Venture :Resources, Inc. has worked closely with an independent, third-party contractor to arrive at cost estimates for <br />reclamation, closure, and post closure work. Doyle Construction, Inc. is a general contractor whom specializes in <br />earthwork and excavation projects in Clear Creek, Gilpin, and Summit counties. They understand the challenges of <br />working in a mountainous environment and the logistics necessary to mobilize labor, equipment, and materials <br />necessary for this reclamation project. They have prepared a letter, attached to this Exhibit D, attesting to the cost <br />estimates made for reclamation. Chris Doyle, President of Doyle Construction Inc. of Dumont, CO, can be <br />contacted at 303-567-1665. <br />As described in 6.3.3(2)(b) Exhibit C and 6.3.4(1)(c)(ii) within this Exhibit D, phased reclamation shall be part of <br />normal operations. Permanent reclamation and control measures will be installed in 10 feet phased increments <br />(elevation height of one quarter of a terrace - see maps in Exhibit E) which is estimated to occur every several <br />months. Seeding will occur to coincide with the appropriate time of year for proper germination, whether it is closer <br />to spring or fall season. Additionally, as each 40' high terrace is completed, the exposed surface of the terrace will <br />be re-vegetated as described above. <br />Venture Resources wishes to appeal to the DRMS for the ability to approach the reclamation of this project in two <br />phases by defining a point of Maximum Disturbance at two specific future benchmarks. We desire this <br />consideration based on the economic constraints of an upstart operation in today's stressed economy. It is our <br />intention to provide a Cash Bond for the Financial Warranty. <br />Page 7 of 9