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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1 3 1 3 Sherman St:, Room 215 C O L O R A D O <br />Denver, Colorado 80203 D I v t s t 0 N O F <br />Phone: (303) 866-3567 RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> <br /> SAFETY <br />May 20, 2011 <br />Mr. Ben Vallerine <br />Exploration Manager <br />Black Range Minerals <br />110 N. Rubey Drive, Suite 201 <br />Golden, Colorado 80402 <br />Re: Notice of Intent for the Hanson Uranium Project; DRMS File # P-2009-025; Request to Convert <br />Exploration Holes into Monitoring Wells <br />Dear Mr. Vallerine: <br />The Division received a copy of your request to the Office of the State Engineer to convert 10 of the 25 exploration <br />drill holes for Notice of Intent # P-2009-025 into monitoring wells. This will be accomplished by installing a small <br />vibrating wire piezometer during exploration hole abandonment. According to Rule 5.4.4, a prospecting drill hole <br />may be converted to a monitoring well for the purpose of ground water or geophysical monitoring, if the <br />prospector conducting the exploration has obtained the necessary permit from the State Engineer (Division of <br />Water Resources) and meets the requirements of 5.4.4, (b) (c) & (d) of the Hard Rock/Metal Mining Rules and <br />Regulations. The bore holes must still be permanently abandoned in accordance with Rule 5.4.2 of the rules and as <br />approved in the original application. Before the Division can grant the approval for conversion of the boreholes <br />into monitoring wells, the Division will require a copy of the approval letter from the Office of the State Engineer. <br />If you have questions, please contact me at (303) 866-3567 ext 8129. <br />Sincerely, <br />Berhan Keffelew <br />Environmental Protection Specialist <br />CC: Mr. Rick Nielson <br />Division of Water Resources <br />1313 Sherman Street Rm 818 <br />Denver, CO 80203 <br />Tony Waldron via a mail <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines