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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 />March 25, 2011 <br />Mark Cape <br />Colorado Mining Enterprises, LLC <br />5967 Harrison Drive, Unit 7 <br />RECEIVED <br />MAR 311 201 <br />Division of Reclamation, <br />Mining and Safety <br />Las Vegas, NV 89120 <br />Re: CME Mineral Prospecting Project, NOI File No. P-2011-002, Technical Review Letter. <br />Dear Mr. Cape, <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />This office received the initial technical responses you provided in reply to our letter dated February 4, 2011. <br />Review of these items indicates that most of the deficiencies identified earlier have been addressed. There are still a <br />few items that are considered deficient or require clarification; these items appear in the following paragraphs. <br />Please provide responses to each of the items discussed in the list below: <br />There will be only one drill hole open at a time, and up to a maximum of ten drill holes eventually drilled in <br />this project. There is known groundwater in the general location of this project, and though some drill holes <br />will stay above the groundwater level, the Division considers it prudent to assume that at least one drill hole <br />will penetrate an aquifer. The bond amount will therefore account for closure of only one open drill hole, <br />and the closure task will involve sealing it to isolate and protect the aquifer. This will include the use of <br />bentonite abandonment gel or cement throughout and beyond the saturated column. Please confirm. <br />2. Since all the drill pads are to be located on hill sides, it is imperative that all drilling fluids are completely <br />controlled and contained onsite. Upon closure, the drill hole casing, if not pulled, must be cut off below the <br />ground surface. Please confirm. <br />3. Please ensure that "general" lithologic and hydrologic records of each drill hole are kept, as well as the <br />details concerning the closure of each drill hole. The (non-confidential) information will have to be provided <br />in the permanent drill hole abandonment reports. Please confirm. <br />4. It was not made clear in past submittals to DRMS that Pad 1 was to be constructed on an old mine dump, <br />either in the narrative of the plan or on project maps. It was through a copy of information supplied to the <br />USFS that this office learned of this detail. As discussed previously in regard to construction of Pad 2, this <br />office cautions the operator to minimize disturbance to previously-mined mineralized materials, so minimize <br />the chance of offsite impacts of sedimentation and/or mineralization. Please confirm. <br />5. In the construction of Pad 1, on the uphill side of the dirt road, how much additional cutting into the hill will <br />be required? Where will the fill material be placed and how will it be stabilized until reclamation? <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines