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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 />November 17, 2011 <br />George Robinson <br />R Squared Incorporated <br />5555 DTC Parkway, Suite A -4000 <br />Greenwood Village, CO 80111 <br />RECEIVaD <br />NOV z 1 2011 <br />Division of reclamation, <br />Mining and Safety <br />RE: Partial Approval J <br />a pproval with Conditions of CN - 01, Approved Activities, <br />May Day Idaho Mine Complex ' Permit No. M- 1981 -185. <br />Dear Mr. Robinson: <br />STATE OF COLORADO <br />On November 9, 2011, the Mined Land Reclamation Board (Board) affirmed the Division's <br />recommendation for partial approval with conditions of CN -01. Please note the Board's <br />decision is not effective until the order is signed and placed in the mail. Therefore, at this time, <br />the existing cease and desist orders remain intact and the conditionally approved permit has <br />not been issued. <br />Once the Board Order is effective, the Operator may proceed with the limited activities <br />approved by the Board and limited to the following: <br />Office of <br />Mined Land Reclamation <br />1. The Operator may collect geotechnical information on the New Access Road, as <br />necessary to finalize a work plan addressing stabilization and reclamation of the New <br />Access Road. Necessary equipment may include a drill rig and backhoe or tracked <br />excavator. <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pirfleda <br />Director <br />2. The Operator may collect geotechnical information on the access road to the Incas <br />Mine, which was undermined by the construction of the Chief Portal. This information <br />may also prove essential in demonstrating the stability of the Chief Portal and its <br />associated highwall. Necessary equipment may include a drill rig and backhoe or <br />tracked excavator. <br />3. The Operator may collect geotechnical information on the collapsed portal at the May <br />Day 1 level. The Operator may clear debris from the collapse to expose a stable <br />highwall and gain safe access to underground workings. Necessary equipment may <br />require a drill rig, backhoe or tracked excavator, bull dozer, and possibly a truck(s) to <br />haul excavated debris to May Day 2 level. Excavated materials may not be taken offsite. <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />