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Phase I will determine the overall technical and economic feasibility of the proposed operation. Once success has <br />been determined, Phase II will be evaluated to construct a permanent 200 ton/day facility within the Affected Area <br />of the Hukill Gulch Millsite, permit #M-2009-076 in Clear Creek County. <br />Venture Resources has elected to permit each individual and distinct dump site as it's own individual reclamation <br />project. This will allow for a shorter turn-around time through reclamation and project closure. There will be no <br />question as to the status of each individual site. Grouping multiple sites over wide distances does not appeal to us as <br />being prudent. However, there may be some cases with dumps immediately next to each other that may be bundled <br />in future permit work. We will evaluate this on a case by case basis. <br />Robert Fulton - Specific Application Summary: <br />The reason for applying under Designated Mining Operation criteria is very distinct and should be kept in the <br />forefront of thought during evaluation: <br />1. There is approximately 1,000 tons of pre-existing mine waste rock to be removed and sent to off-site <br />processing at the Venture Resources' Hukill Gulch Millsite, DRMS Pen-nit #M-2009-076. The affected <br />area is 1.208 acres and the waste rock dump covers an area of 10,500 sq. ft. The initial dump disturbance <br />justifies consideration of a Designated Mining Operation. However, once the dump has been removed, this <br />designated distinction becomes largely mute. <br />2. Certain stormwater management controls will be prescribed to limit acid water nun-off during the dump <br />removal excavation. <br />3. NO designated chemicals are used in this proposed operation. NO processing is performed in these <br />individual dump cleanup sites. <br />Venture Resources wishes to appeal to the DRMS Office and Board to recognize this and apply the provisions set <br />forth in 6.4.21(e) which states: <br />The Board shall also consider current or pre-existing conditions and the degree to which the <br />proposed plan would provide for net improvements in the protection of human health, <br />property, or the environment. <br />This project extracts nearly all of the acid-forming minerals in waste rock that are the source of acid-runoff that <br />plague this historic mining district. By doing nothing, these piles of pre-existing waste rock will continue to leach <br />acid and heavy metals for a very, very long time. But, by designing a carefully regulated and engineered program a <br />solution can be achieved. Along with the environmental benefits of this cleanup, new employment opportunities <br />and increased business diversity within the local economy will develop. <br />6.3.3(1)(a) <br />The proposed mining operation is scheduled to commence, pending permit issuance, July 1, 2011 and terminate <br />October 1, 2012. Operations will be conducted during the daylight hours. Depending on unforeseen events the <br />permit may be amended to extend the termination date. <br />6.3.3(1)(b) <br />Considering the nature of poor topsoil conditions at this site (as previously described in Exhibit B) it will be <br />challenging to salvage any significant quantities for future reclamation uses. Additionally, over 20% of the <br />impoundment area is currently covered with existing waste rock. Venture Resources is going to do our best in <br />salvaging any native soil for reclamation. This will be stored in the Topsoil/Biosolids Staging Area shown in the <br />Exhibit E drawings. <br />See Exhibit D for reclamation measures. <br />6.3.3(1)(c) <br />There is approximately 1,000 tons of abandoned mine waste rock located within the Affected Area (see Exhibit A & <br />E). The affected area is 1.208 acres and the waste rock dump covers an area of 10,500 sq. ft. This material is in a <br />loosely defined area and the depth of waste rock in this pile varies from several feet to fourteen feet at the center of <br />Page 2 of 8