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• Collect an undisclosed quantity of samples. <br />In this phase of the Project exploration program, Colorado Goldfields plans to collect up to 250 channel <br />samples from the sides and back of existing underground workings. Each sample will be placed in <br />sample bags at the point of sampling and will contain up to one pound of chipped rock material. <br />Individual channel sample sites up to 2 inches deep by 3 inches wide by 12 inches long may be chipped <br />to obtain samples. Small areas of fresh sulfide mineralized material will be exposed by this activity. <br />None of the sample sites are expected to be exposed to running water and are not expected to result in <br />any degradation of water quality in the mine or in the mine discharge. <br />• General and undefined site clean -up. <br />The general site clean -up planned will consist of removal of old "junk" materials lying around on the <br />mine surface area including old boards and timber, old scrap metal, old metal ventilation piping, old <br />steel structural shapes (such as angle iron) that formerly supported snow sheds, old galvanized metal <br />siding, old discarded bridge timbers, old sections of steel pipe and some "junk" equipment. All of these <br />materials will be hauled by truck from the mine site for disposal at a re- cycling depot, to a regulated <br />land -fill location or for sale to others. <br />The removal of these items and materials from the mine site will not adversely affect ground water <br />quality and will support and result in improvements in the Storm Water Management Plan. 1 Any areas <br />that may result in disturbance of site rock /soils materials will be re- graded in accordance with the Storm <br />Water Management Plan. <br />The Storm Water Management Plan will be revised as necessary to incorporate the resulting <br />improvements in site drainage management. <br />• Remove sludge from the sediment pond and bury the sludge in a trench excavated into the <br />existing waste rock stockpile. <br />The proposed plan for disposal (burial) of the sediment pond sludge will not result in any increase in <br />metal loading (degradation) to the Animas River. <br />It has been well established, as the Division of Reclamation, Mining and Safety has pointed out in their <br />Deficiency Letter dated September 21, 2011 (NOl P- 2011 -027), that the existing Silver Wing Mine dump <br />(which was placed prior to 1904) is believed to contribute metal loading and some degradation to water <br />quality in the Animas River as it flows by the site. There are other potential sources of this degradation <br />(such as seeps of metal laden water coming from the bottom of the river channel — which has been well <br />established by other studies by the USGS in the Upper Animas River basin); however, the Silver Wing <br />Mine dump is an obvious possible source since it is known to contain significant amounts of metal <br />sulfides. <br />The current Storm Water Management Plan contains a provision for removal of this dump to the Pride <br />of the West Mill for processing during the tenure of a previous operator. The Mined Land Reclamation <br />1 By way of background, there is an existing Storm Water Discharge Permit and associated Storm Water <br />Management Plan in place for the site — COR- 040176. The permit is currently held by Silver Wing Company, Inc., <br />former owner of the Silver Wing Mine, and will be transferred to Colorado Goldfields Inc. <br />