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iDIVISION 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 />► 4 (V1arch 28, 2012 <br />John S. Hamrick <br />otter Corporation <br />P.O. Box 1750 <br />Canon City, CO 81215 <br />/ <br />Re: Schwartzwalder Mine, Permit No. M- 1977 -300 <br />..-DRMS response to Cotter letter of March 1, 2012 <br />Dear Mr. Hamrick: <br />STATE OF COLORADO <br />*OW <br />DRMS has received your letter of March 1, 2012 which, in part, expresses Cotter's desire to <br />propose onsite disposal of alluvial source term materials from the mine. DRMS agrees that <br />Cotter should have the opportunity to propose onsite disposal of alluvial source term materials, <br />including disposal at a location inside the Schwartzwalder Mine workings or in a waste rock pile <br />on the land surface. Such a disposal plan must be submitted as a permit amendment and will <br />need sufficient detail to demonstrate that disturbances to the prevailing hydrologic balance will <br />be minimized. To allow for such a plan, please revise item 6 in Attachment A of our letter of <br />January 30, 2012 as follows. <br />6. Integrate a plan into the EPP for disposal of the alluvial source term materials, including a <br />cost estimate of completing the plan. If the proposed disposal method is a fill structure <br />within the mine workings or is a fill structure in an onsite waste pile, then please provide in <br />the plan a detailed engineering design that includes: <br />Office of <br />Mined Land Reclamation <br />a) Two vertical cross - sections oriented perpendicular to each other that are drawn through <br />the fill and surrounding rock at a scale sufficient to show details of the final fill structure <br />and any installed moisture barriers, <br />b) A structural stability analysis of the fill structure that demonstrates long -term stability, <br />c) A drainage plan demonstrating that ground water or meteoric water that infiltrates into <br />the subsurface will not saturate any part of the fill structure, <br /><4 i< 1 A W <br />C0 <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />d) A predictive geochemical model of expected water quality demonstrating that, should the <br />fill drainage plan fail, saturation of the fill by meteoric water or ground water will not <br />result in degradation of the quality of the mine pool water, ground water, or surface <br />water, <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />