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BEFORE THE MINED LAND RECLAMATION BOARD <br />STATE OF COLORADO <br />Notice of Violation No. MV- 2011 -033 <br />AMENDED FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER <br />IN THE MATTER OF THE NOTICE OF POSSIBLE VIOLATION BY AGC <br />RESOURCES, LLC, CORRECTIVE ACTIONS, AND CIVIL PENALTIES FOR <br />FAILURE TO HANDLE ACID - FORMING OR TOXIC - PRODUCING MATERIAL <br />IN A MANNER THAT WILL PROTECT THE DRAINAGE SYSTEM FROM <br />POLLUTION, File No. M -1994 -117 <br />THIS MATTER came before the Mined Land Reclamation Board ( "Board ") <br />on October 12, 2011 in Denver, Colorado to consider a possible violation, <br />corrective actions, and civil penalties against AGC Resources, LLC ( "Operator ") <br />for failure to handle acid- forming or toxic - producing material in a manner that <br />will protect the drainage system from pollution, file number M- 1994 -117. <br />Michael Cunningham appeared on behalf of the Division of Reclamation, Mining <br />and Safety ( "Division "). There were no appearances on behalf of the Operator. <br />The Board, having considered the materials presented with this matter and <br />having been otherwise fully informed of the facts in this matter, hereby enters <br />the following: <br />FINDINGS OF FACT <br />1. The Operator holds a 110(2) permit for a 8.4 -acre gold and silver mill <br />operation. The site, known as the Gold Hill Mill, is located in Section 12, NE 1/4, <br />Township 1 North, Range 72 West, 6th Principal Meridian, 10 miles northwest of <br />Boulder, Colorado in Boulder County. <br />2. In March 2009, the prior site operator, Mount Royale Ventures, LLC, <br />submitted Technical Revision 06 to permit number M -1994 -117 to allow placing <br />uncemented tailings from the Gold Hill Mill into the Cash Mine workings and other <br />voids in the area. The Division denied Technical Revision 06 in April 2009. <br />3. On June 12, 2009, the Division inspected the site and found that <br />tailings had been placed both in two historic prospect pits located on the hillside <br />below the mill and in the Cash Mine workings. <br />4. Permit number M -1994 -117 was transferred from Mount Royale <br />Ventures, LLC to AGC Resources, LLC in August 2010. <br />