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July 11, 2012 <br />JU% ?012 <br />Mr. Bob Oswald <br />'r Colorado Division of Reclamation, Mining and <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />i tiLUR!, <br />Re: Airport Pit, Permit M- 2011 -013, Technical Revision TR -1, Adequacy Review Letter"{j��pnl <br />Dear Mr. Oswald, <br />�C.o <br />TELLURIDE <br />STONE COMPANY <br />Telluride Stone Company (TSC) is providing the following responses to your Adequacy Review <br />Letter dated July 9, 2012. Post Office Box 3552 <br />Telluride, CO 81435 <br />Question 1: The revised mining plan states that the pit that is excavated will be backfilled with Tel: 970.728.6201 <br />unusable materials up to the original surface grades. We do not intend for this backfill material Fax: 970. 369.4568 <br />to include imported earthen materials from an offsite source at this time. TSC would like to reserve www.te[Lu6destone.com <br />the right to allow for importing earthen materials per CRMS Rule 3.1.5 (9). If we do so, the imported <br />material will be from a large pile of stored material owned by TRAA (landowner) immediately adjacent <br />to TSC's mining permit eastern boundary. This large pile is comprised of a mix of topsoil, shale, <br />sandstone and quartzite. It was removed from the east end of the owner's property by the owner (TRAA) <br />and stored at this location. TSC currently has on site 40,373 cubic yards of stored topsoil and waste rock <br />both in stockpiles and berms. Our initial mining area will be approximately 1 acre. The excavated topsoil, <br />at an estimated average depth of 3.5 feet, will be 6,123 cubic yards. We are then estimating the brown <br />stone average depth to be approximately 4 ft and the sandstone layer average depth to be 15 feet. The <br />estimated volume in cubic yards of yield, respectively, would be 6,997 cy for the brown stone and 26,240 cy <br />for the sandstone for a total of 33,237 cubic yards of stone. Our recovery, historically, has been 609 or 19,942 <br />cubic yards. This creates 400 of waste rock, or 13,294 cubic yards. The amount of total material displaced from the <br />quarried area, topsoil plus stone, will be approximately 39,360 cubic yards. The waste material stored on site will <br />be 19,417 cubic yards from the pit excavation. This material will be placed back into the pit with 19,943 cubic yards <br />of existing stored material. The remaining stored material (20,430 cy) will be available and used for the 2nd acre as <br />contemporaneous reclamation occurs. We will only likely need to import earthern materials when the 3`d acre is <br />mined and contemporaneous reclamation has begun. TSC estimates that based on current market conditions the <br />life of each 1 acre mined area to last approximately 3 years. <br />Mining Area and Reclamation Volumetrics: <br />Existing stored topsoil & waste rock, cu.yds <br />40,373 <br />Initial area, acres (290 ft x 163ft) <br />1.08 <br />Avg topsoil depth, ft <br />3.5 <br />Topsoil volume cu. yds <br />6,123 <br />Brown stone depth, ft <br />4 <br />Brown stone volume, cu.yds <br />6,997 <br />Sandstone depth, ft <br />15 <br />Sandstone volume, cu.yds <br />26,240 <br />Recovery (60% of 33,237 cy) <br />19,942 <br />Waste rock (40% of 33,237 cy) <br />13,294 <br />Material displaced in initial area, cu.yds <br />39,360 <br />Material needed from existing storage, cu.yds <br />19,943 <br />Material remaining from existing storage, cu.yds <br />20,430 <br />Denver Retail & Wholesale Yard /Sales /Accounting Office • 3975 York Street Denver, CO 80205 • Tel: 303.388.8863 <br />