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Response to DRMS Adequacy Review #2 — Cotter JD -8 Mine Reclamation Plan Amendment <br />within 30 days. No gobbing will be allowed below the initial groundwater elevation <br />encounter until the water regime is fully analyzed and Cotter receives Division written <br />approvals to resume the practice. Please indicate Cotter understands the requirements of <br />the stipulation. <br />Cotter response: Cotter understands the requirements of this stipulation. <br />5) On Page 8, #16 it is noted that a Threatened and Endangered Species Study "will be <br />conducted for the current and proposed affected areas "later this spring" (sic). Please <br />note the survey has not been submitted. <br />Cotter response: A biological field survey was conducted on June 14, 2012, by ERO <br />Resources and the associated report is currently in preparation. A copy of the <br />report will be provided to DRMS upon receipt by Cotter. <br />6) On Page 13 and 14, # 17 notes clay materials will be used for a geo- synthetic liner on <br />ore pads. The response notes clay materials will be brought in from an outside source. <br />Please clarify the materials will come from a properly permitted site in the vicinity. Also <br />discussed is compaction and proctor testing of the materials during placement. Please <br />clarify that the test results will be submitted to the Division for acceptance prior to <br />placement of any ore materials on the pad. <br />Cotter response: The clay materials will come from a properly permitted site in the <br />vicinity. The proctor compaction test results will be submitted to DRMS for <br />acceptance prior to the placement of any ore materials on the pad. <br />7) On Page 22, #7 the Division and Cotter have discussed the location of the compliance <br />well in correlation to planned future mining. Based on in person discussions please <br />review the location of the proposed monitor well to locate a suitable location closer to <br />proposed underground workings. <br />Cotter response: The distance from the monitoring well to the workings was not <br />shown in the figure because the figure showed only the main development drift, and <br />did not show the potential extent of drifts extending south (downgradient) of the <br />main development drift. The fmal extent of workings will be determined, in part, <br />based on ore control during mining operations. Therefore, the proposed monitoring <br />well location was closer to the proposed underground workings than it may have <br />appeared. However, a revised location has been selected at 1,220 feet east - northeast <br />of the original location (Attachment 3). <br />The new well will be located in the NE% of the NE % of Section 19, T46N, R17W. <br />The well would be drilled within 200 feet of coordinates 1,058,000E 586,000N <br />(Colorado State Plane Central NAD27). The expected depth to water is about 550 <br />feet and the proposed total depth of the well is 600 feet, based on information from <br />nearby exploration drill holes. The depth to water was 540 feet in exploration drill <br />hole 79 -157, located 140 feet east of the proposed monitoring well location. <br />Page 4 <br />