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Walsh <br />Environmental Scientists and Engin LLC <br />August 12, 2010 <br />Mr. Ross Cub lot <br />Western Fuels Colorado LLC <br />Box (5 <br />Nue la Colorado 81424 <br />Subject; Soil Suitability Study <br />New Horizon Mine <br />Walsh Project No, 9004122.0001.010 <br />Dear Mr. Ciubka: <br />Walsh Environmental Scientists & Engineers, LLC (Walsh) has performed a limited Soil investigation <br />at the New Horizon Mine in Nue la, Colorado. Work was conducted under contract to Western Fuels - <br />Colorado LLC (WFC). This letter describes investigation techniques and resutts, The investigation <br />was patterned alter your request for services dated July 5, 2010 and revised July 12. 2010, and Notice <br />olViolation (NOV) CV-2010-003 issued by the Colorado Division of Minerals and Geology. <br />Walsh inspected the site with assistance of WFC personnel, and inspected previously-excavated sod <br />pits. There were four types of inspections performed, three were to address NOV Steps Necessary to <br />hate Violation outlined in the NOV, and one type was to provide additional information to WIT. <br />These four inspections are described in the following sections. <br />NO Step 1 This step required resat topsoil placed on the Lloyd properly for calcium <br />carbonate {CaCO3), selenium, and coarse fragments. Pits excavated by WFC at the previous sampling <br />locations were inspected by Walsh. Each pit was inspected by sweeping °flit face of the pit, <br />measuring the depth of the pit and marking the apparent topsoil depth, visually estimating the percent <br />boulders, stones, and cobbles usine, United States Department of Agriculture (USDA) criteria, <br />obtaining a Rill-thickness topsoil sample and placing it into a graduated sieve with a 2-millimeter ti not <br />sieve size, and sieving the soil into a bottom pan. A sample of the soil was moistened and manipulated <br />to estimate field texture based on USDA criteria. Color of the soil was compared to a Munsell soil <br />chart and recorded. The volume percent of soil being caught in the 2-mm and larger sieves was <br />estimated, the sieve pans and excavation were photographed, and two samples of the less than 2 min <br />fraction wee obtained for laboratory analyses, No boulders (>25 inches) were observed in any soil pit. <br />All field data were recorded on field data sheets, copies of which are attached to this letter. <br />Samples were analyzed for selenium by Key Laboratories of Grand Junction, Colorado, and calcium <br />carbonate by Servi-Tech Labs of Hastings, Nebraska, with the results recorded in Table I. Sample TS- <br />95 (from the Lloyd property, where Mixed Topsoil is being used) appeared to have more than the <br />recorded 13 inches of topsoil, so an additional deeper sample (TS-95B) was token from 13 w 26 inches <br />below surface, which was the apparent thickness of topsoil at that location. Sample TS-95B was <br />within the Single Lift Topsoil criteria, demonstrating that the topsoil at this location is 26 inches deep. <br />In addition another sample point. TS-102 was added by WFC. These additional locations were also <br />western Slope Diviiion: <br />53.5(imnd Aventw lunctinri, Colorado 51501-2790 . !toile .l 24 1 , FAX ic.)76) 241,4312 , walshenv.coni <br />Corporate Office: <br />41-3SS Pear F...ns1 Circle, Suile 10F , floulder, Colonolo 9'601-2475 , Phone (303) +13-3282 . FAX 30:3) 443-0367 <br />