2011-09-12_ENFORCEMENT - M1994117 (2)

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DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866 -3567 FAX: (303) 832 -8106 September 12, 2011 Mark Nesbitt AGC Resources, LLC 1580 Lincoln St, Suite 700 Denver, CO 80203 STATE OF COLORADO RE: Reason to Believe a Violation Exists at the Gold Hill Mill; DRMS File No. . M- 1994 -117 Dear Mr. Nesbitt, On August 24, 2011, the Division of Reclamation, Mining and Safety (Division) conducted an inspection of the Gold Hill Mill located 10 miles northwest of Boulder, Colorado and found the following: A thin layer of tailings has been deposited on the out -slope of the tailings dam. In addition, the historic prospect pits, in which tailings were deposited, have not been reclaimed. Based on the findings of the inspection we believe that this is a violation of: • C.R.S. 34- 32- 116(7)(c) for failure to handle acid - forming or toxic - producing material in a manner that will protect the drainage system from pollution. COLORADO D I V I S I O N O F RECLAMATION MINING — &— SAFETY John W. Hickenlooper Governor Mike King Executive Director Loretta E. Pineda Director Therefore, we have reason to believe that a violation exists to DRMS File Number M- 1994 -117 and to the Law, and have scheduled this matter to appear before the Mined Land Reclamation Board. A Formal Public Hearing will be held during the October 12 and 13 2011 Board Meeting for consideration of a possible violation. The hearing will be held in Room 318 of 1313 Sherman Street, Denver, Colorado, beginning at 9:00 a.m. on October 12 or as soon thereafter as the matter can be considered. At that hearing you will have the opportunity to be represented and heard. It will be reiterated that there is reason to believe that you are in violation of the provisions noted above. �il�c t uJ Office of / Office of Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines