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BEFORE THE DEPARTMENT OF HEALTH <br /> DIVISION OF ADMINISTRATION <br /> STATE OF COLORADO <br /> ------------------------------------------------------------------------------- <br /> NOTICE OF VIOLATION AND CEASE ANb DESIST ORDER <br /> ------------------------------------------------------------------------------- <br /> IN THE MATTER OF: SUNNYSIDE GOLD CORPORATION - AMERICAN TUNNEL <br /> PERMIT NO. CO-0027529 <br /> SAN JUAN COUNTY, COLORADO <br /> ------------------------------------------------------------------------------- <br /> TO: Sunnyside Gold Corporation <br /> FINDINGS OF FACT <br /> Pursuant to the authority vested in the Division of Administration of the <br /> Colorado Department of Health ("the division" ) by 25-8-301 to 308, C.R.S. <br /> (1982 and 1985 supp. ) , which authority has been delegated to me by the <br /> executive director of the department, I hereby make the following findings of <br /> fact. <br /> 1. Sunnyside Gold Corporation ("Sunnyside Gold") operates an <br /> underground hardrock mine ("the mine") approximately 6 miles north of <br /> Silverton, Colorado. <br /> 2. The mine is accessed by an adit called the American Tunnel. <br /> 3. Water draining from the American Tunnel receives chemical <br /> treatment and flows through a series of four settling ponds prior to <br /> discharging to Cement Creek, a tributary to the Animas River. <br /> 4. Sunnyside Gold holds Colorado Discharge Permit System permit no. <br /> CO-0027529 ("the permit") authorizing the discharge described in paragraph 3 <br /> above. The permit became effective on August 2, 1982 and is scheduled to <br /> expire on March 31, 1987. <br /> 5. The permit originally was issued to Standard Metals Corporation <br /> and was transferred to Sunnyside Gold on December 5, 1985. <br />