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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 />October 12, 2011 <br />Randy McClure <br />Rio Grande Silver, Inc. <br />PO Box 610 <br />Creede, CO 81130 <br />Re: Bulldog Mine, Technical Revision TR -17, Revision to Borrow Area #1, Holding Pond #2, <br />Approved. <br />Dear Mr. McClure, <br />The Division has reviewed your September 23, 2011 letter describing the need to revise the location of <br />the proposed Borrow Area #1 for the evaporation pond (a.k.a. pond #2) due to the presence of mill tails in <br />the originally proposed borrow area. The Division appreciates that Rio Grande Silver stopped work upon <br />recognizing that tails were being disturbed, and that this requested change was promptly prepared and <br />submitted. <br />The new location of the borrow area #1 appears to be appropriate. The revised map shows a new borrow <br />area located approximately 100 feet west of the original borrow area. Given that the same site activities <br />will occur, including topsoil salvage and grading, on a site so close to the previously- approved location, <br />this office does not anticipate any change to the amount of bond increase for this technical revision. Rio <br />Grande Silver has already provided the bond increase. As such, the bond increase of $28,342 still applies, <br />and no further increase of bond is required for this revision. <br />The request for revising the location of Borrow Area #1 is hereby approved. Thank you for providing this <br />information to the Division. Please keep this office apprised of your progress during the project. If there <br />are other issues that arise during the activities associated with this permit, please do not hesitate to contact <br />me. I may be reached at the Division's Durango Field Office: 691 CR 233, Room A -2, Durango, CO <br />81301; telephone 970 - 247 -5193. <br />Sincerely, <br />Bob Oswald <br />Environmental Protection Specialist <br />Ec: Steve Shuey, DRMS Grand Junction <br />(c: \11 -10 docs\Bulldog TR -17 appr rev borrow#1 /rco) <br />Office of <br />Mined Land Reclamation <br />(% <br />STATE OF COLORADO <br />RECENED <br />OC. "i 7 l u1 <br />Division or t- eclamation, <br />Mining and Safety <br />I �-� -2�5 <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />