2012-07-27_PERMIT FILE - P2012012

• Permit No: P2012012
• IBM Index Class Name: PERMIT FILE
• Doc Date: 7/27/2012
• Doc Name: INITIAL ADEQUACY REVIEW
• From: DRMS
• To: SANTIAGO MINING
• Email Name: TAK
• Email Name: AJW
• Media Type: D
• Archive: No

DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
July 27, 2012
Mr. Stephen Hilgers
Santiago Mining Co., LLC
6499 Plateau Drive
Englewood, CO 80111
Re: Santiago Mine, Notice of Intent (NOI) to Prospect, file P -2012 -012
Initial Adequacy Review
Dear Mr. Hilgers:
Mined Land Reclamation
STATE OF COLORADO
COLORADO
DIVISION OF
RECLAMATION
MINING
— &—
SAFETY
John W. Hickenlooper
Govemor
Mike King
Executive Director
Loretta E. Pineda
Director
DRMS has reviewed the above - referenced NOI, and has determined that the proposed operation is a mining operation
and, therefore, requires a reclamation permit prior to commencing operations. The NOI proposes the removal of
dumps for processing (Project Description, Item 6.D.). Hard Rock Rule 1.1(43) allows a variety of activities to be
conducted under an NOI "for the purpose of extracting samples ". The removal of dumps for processing is not an
activity that is conducted for the purpose of extracting samples.
A further indication that the proposed operation is a mining operation, and is not prospecting, is the NOI provides
for the extraction or removal of up to 20,000 units of material (Project Description, Item 3), of which the
mineralized portion "may be shipped away from the property" (Project Description, Item 6.C). DRMS believes
20,000 units of material (whether the units are cubic feet, cubic yards, or tons) exceeds a reasonable volume for a
bulk sample.
Should you wish to revise the NOI so that only sample -sized volumes of material are removed from the site, the
Division provides the following comments.
1. GENERAL INFORMATION, Item 7F. Please submit proof that the U.S. Forest Service has received a
copy of this NOI application.
2. PROJECT DESCRIPTION, Item 3. Please specify the units for the number "20,000" (tons, cubic yards,
etc.).
3. PROJECT DESCRIPTION, Item 3. Of the 20,000 units of material, what is the maximum volume or
weight that will be transported off -site?
4. PROJECT DESCRIPTION, Item 5. What is the function of the "water discharge trench "?
5. PROJECT DESCRIPTION, Item 5. Does the following wording refer to an NOI application other than
the current application for the Santiago Mine: "written N.O.I. application to be submitted 7/9/12 "?
6. PROJECT DESCRIPTION, Item 6.C. Will a secondary escapeway or ventilation opening be constructed
for the new adit?
7. PROJECT DESCRIPTION, Item 6.C. Based on the potential for Santiago Mine waste rock to
contaminate water when contacted by precipitation and snowmelt (U.S.G.S. Scientific Investigations
Report 2004 - 5104), please commit to isolating waste rock generated during prospecting by encapsulating
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