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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 />December 14, 2011 <br />Thomas Cavanaugh <br />AMEC <br />2000 S Colorado Blvd, Ste -2 -1000 <br />Denver, Colorado 80222 <br />Office of <br />Mined land Rerlamatinn f)anver • Grand Iunrtinn • Tillman <br />4A <br />STATE OF COLORAbO <br />RE: Uranus Patented NOI, Notice of Intent, File No. P- 2011 -033, Notice of Deficiencies. <br />Dear Mr. Cavanaugh, <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John John W Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Colorado Division of Reclamation, Mining, and Safety (Division) received Nuvemco's Notice of Intent <br />(N01) to conduct prospecting operations on November 23, 2011. The Division posted the non - <br />confidential Public Form 2 on the Office website on November 28, 2011 in accordance to the <br />requirements of Rule 5.1.3. Any public comments or request for disclosure of information designated as <br />confidential regarding the NOI had to be received by the office no later than ten (10) working days after <br />the notice was posted on the website. That date was December 7, 2011. No comments or requests <br />were received. <br />The Division has reviewed the NOI application and notes some deficiencies that must be addressed prior <br />to a decision. Please address the following: <br />1. While it is understood that drilling in the area has so far not encounter groundwater to date <br />there remains a slight potential. The Division recommends having at least 1 mud pit as part of <br />the plan as a contingency. Drill fluids and/ or water cannot be allowed to run freely on the <br />surface. If Nuvemco were to hit water or have to use unusual amounts of drill fluids a <br />containment pit or tank would be required. If a pit is not part of the approved plan, Nuvemco <br />would have to shut down and submit a modification to include the structure. A Toss of time and <br />money. Please submit a contingency plan for if groundwater or fluids are discharged that <br />include either a mud pit or having a tank nearby to capture fluids for proper disposal. <br />2. The maps provided indicate the size and nature of the project. However, they do not supply <br />critical information as to exactly which roads will be impacted and more information as to the <br />number of holes per area. Please provide a map(s) clearly showing roads to be impacted, drilled <br />on, and a general number of holes per area. <br />3. Nuvemco's estimate for a reclamation bond is based solely on the acreage which is insufficient. <br />Based on general drilling and exploration practices a number of holes will be drilled, and then <br />left open to probe prior to reclamation. Nuvemco must commit to drilling, probing, and sealing <br />1 hole at a time in order for the submitted bond to cover the liability or commit to a reasonable <br />amount of holes to work with. Another option is to bond for all 500 holes which would be very <br />costly. A systematic, phased approach will keep the liability down and appears to be a better <br />option. Please submit a drill hole reclamation plan that meets Nuvemco's goals. <br />Office of <br />Artivn and Inartiva Minac <br />