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ARCADIS <br />Infrastructure • Water • Environment • Buildings <br />Mr. Bob Oswald <br />Colorado Department of Natural Resources <br />Division of Minerals and Geology <br />691 CR 233, Suite A -2 <br />Durango, CO 81301 <br />970 - 247 -5193 <br />Bob.oswald(a state.co.us <br />- 1H - -004- <br />Subject: <br />Installation of Replacement Piezometers <br />Indian Creek Waste Rock Dump, Pitch Reclamation Project, Sargents, CO <br />Dear Bob: <br />This letter is submitted in reference to our previous conversations concerning <br />monitoring of water levels in the Indian Creek Waste Rock Dump at the Pitch <br />Reclamation Project. The Pitch Mine (property) is an inactive mine owned by <br />Homestake Mining Company (HMC) that is currently in the final closure and <br />reclamation phase of its mine life. The property is located in Township 48 North, <br />Range 6 East in Saguache County approximately 25 miles west of Salida, Colorado <br />near the town of Sargents in the Gunnison National Forest. <br />As reported in the Annual Geotechnical Reports, water levels in two piezometers in <br />the Indian Creek Waste Dump on the 10,300 and 10,370 -foot benches have become <br />difficult to access due to clogging, and HMC would like to replace the piezometers <br />such that water level monitoring can continue. Specifically, HMC's work proposal <br />includes abandonment of piezometers IC -10300 and IC- 10370, and installation of <br />replacement piezometers (Figure 1). <br />A site visit was conducted on August 3. Though adequate access to the piezometers <br />and to the new drilling sites exists, it is anticipated that minor road improvements will <br />be required to allow access for the drill rig and support vehicles. Furthermore, it will <br />be necessary to do some minor re- grading to accommodate the drill rig and support <br />trucks at both locations. These pads will be restored to previous grades and <br />reclaimed after field activities have been completed. The two primary activities <br />planned for this phase of work include abandonment of the existing piezometers and <br />drilling of the new piezometers, as described below. <br />ARCADIS U.S., Inc. <br />630 Plaza Drive <br />Suite 100 <br />H ighlands Ranch <br />Colorado 80129 <br />Tel 720 344 3500 <br />Fax 720 344 3535 <br />www.arcadis - us.com <br />Date: <br />August 5, 2011 <br />REC5IVED <br />AUG 18 20'.1 <br />Division of Reclamation, <br />Mining and Safety <br />Contact: <br />Phil DeDycker <br />Phone: <br />303 - 471 -3443 <br />Email: <br />phil.dedycker @arcadis - us.com <br />Our ref: <br />A0000102.0001 <br />