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November 4, 2011 <br />Mr. Michael Cunningham <br />Environmental Protection Specialist <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Permit M1990 -057, Project Status Udate <br />The Union Milling Company <br />P.O Box 620490 <br />Littleton, CO 80162 -0490 <br />+1.303.947.3499 <br />keeetveb <br />110 72011 <br />iv Division of Rooloo tioni <br />Mining & Safety <br />Dear Mr. Cunningham, <br />Union Milling Company (UMC) is providing the Division with and overview of construction activities at <br />the Union Mill located near Leadville, Colorado. Also, we are commencing work with respect to <br />obtaining a DMO designated permit, and would like to meet with you to discuss the requirements for this <br />application. <br />Mill Site Activities <br />On 30 September 2011, upon approval of Technical Revision #3 of our permit, UMC commenced <br />activities to bring the mill into production. The primary task is the construction of the tailings storage <br />facility (TSF). <br />UMC submitted bids to contractors to complete the required work. Given the time required to award the <br />bid to construct the TSF, mobilize the contractor, and complete the work it became clear that this activity <br />could not be completed within the current construction season. <br />UMC however was able to complete the following activities: <br />• Trees were cleared in the area of future TSF construction; <br />• Topsoil was removed and placed on the topsoil pile; _ • Mill site roads were improved; <br />• A construction stormwater permit was obtained and a stormwater plan was implemented; and <br />• The access from US Highway 24 to the property was improved (per CDOT requirements). <br />In addition, UMC plans to complete the following activities over the winter months. These are relatively <br />small tasks and can be completed as weather permits: <br />• Mill building improvements. Construction of the concentrate storage room and office is currently <br />underway and should be completed by the spring of 2012; <br />• Construction to access the Leadville Sanitation District sewer system in underway and should be <br />completed in November. This activity also involves installing a lift station; <br />