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December 23, 2011 <br />2 3 2011 <br />Greg Lewicki And Associates, PLLC <br />11 5.41 \\ a,rington Court Phone: (303) 346 -5196 Fax (303)-346-6934 <br />Parker. CO USA 80138 E- flail: info , Ie ickibiz <br />Eric Oppelt <br />j CDPHE - Water Quality Control Division <br />4300 Cherry Creek Drive South <br />Denver, CO 80246 <br />RE: Revenue Mine Baseline Water Data <br />r- Les 1 — 0 - S <br />( v t RAI ¶0 b✓g C, t) 'RE <br />OW ¶ Pea w,, <br />As we discussed on the phone, Silver Star Resources is investigating the possibility of re- <br />opening the Revenue Mine in Ouray County, Colorado. The old workings are on private <br />patented lands controlled by RVM LLC. This site has a historic underground gold and silver <br />mine that was started in the 1880's and has operated sporadically since that time. The mine was <br />operated by Sunshine Mining and refining Company in the 1980's and the discharge was <br />regulated under discharge permit CO- 0044601. We do have records of the old permit and the <br />quarterly sampling results if this information is desired. Silver Star has applied for an exploration <br />permit with the DRMS to conduct exploration to decide if the mine should be re- opened. <br />The exploration permit calls for a) rehab work in the mine to make it safe, by installing better <br />roof support, etc., b) in -mine drilling and c) the 800 feet extension of one tunnel (Yellow Rose <br />Drift) in a vein that will allow us to take a bulk sample and d) surface drilling with cores for vein <br />testing. <br />As part of this exploration permit application, the DRMS asked us to contact the Water Quality <br />Control Division to determine if a discharge permit was needed for the Exploration Permit. In <br />order to help evaluate the need for the permit, the information discussed below is attached for <br />your review. <br />The existing underground workings have 2 main drifts. See attached map. Water emanating from <br />the old workings in the Yellow Rose drift was measured in November of 2011 at approximately <br />20 gallons per minute. The Yellow Rose drift joins the main drift before leaving the mine. The <br />main drift was measured at approx. 200 gallons per minute at the same date in November. <br />Samples of the Yellow Rose water and the main drift at that time were analyzed by ACZ labs <br />and these results are available and have been attached. <br />Based on the water quality samples taken in November of 2011 by Silver Star personnel, <br />Sneffels Creek water quality north of the Revenue Mine is affected by three principal water <br />sources: Sneffels Creek flow from further upstream, surface runoff that comes out of the Atlas <br />Mine portal, and runoff and ground water flow from the Revenue Mine area. Each of these <br />influences is monitored with a sample point, as well as two underground sample points to further <br />JAN 0 3 2012 <br />M i n �,f e� fimatioR, <br />MinIng safety <br />