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RPM, Inc. <br />October 19, 2012 <br />Div. of Reclamation, Mining and Safety <br />‘ /Attn: Michael Cunningham <br />Rm 215, 1313 Sherman St., <br />Denver, CO 80203 <br />✓ ✓ <br />Re: P2012 -006 Clean -up and Spill Mitigation Report <br />Dear Mr. Cunningham: <br />RECEIVED <br />OCT 2 4 2012 <br />Division of Reclamation, <br />Mining & Safoty <br />In your inspection report of 9/25/2012, Corrective Actions, related to the loss of containment of <br />drilling fluid, requires Gold Hill Minerals take the following actions: <br />"The Operator shall provide the Division with proof that the drilling fluid has been cleaned up <br />per the recommendations of the USFS by the corrective action date. In addition, the Operator <br />shall notify the Division in writing of the changes that will be made to the drilling operations to <br />prevent future losses of drilling fluids." The corrective actions due date is 10/24/2012 <br />The drainage has been cleared of drilling fluid as of the date of this letter. We did not receive <br />correspondence from the USFS as to their clean -up recommendation. We did discuss the matter <br />with the USFS during a subsequent site visit and were told to proceed as was discussed during <br />the initial site visit with the USFS and DRMS representatives on September 6, 2012. <br />We are leaving the sump with the fabric dam in place to catch any residual outflow from the <br />Bueno Mine Waste dump. We will periodically check the sump for any further drain down and <br />clean up the material as necessary. We will remove the sump and clean up any additional <br />leakage after spring runoff in 2013. (As you know this is a very dry area and drainage. We do <br />not expect significant amounts of additional seepage. We are leaving the sump as a precaution <br />against any additional loss to the drainage.) <br />Attached are a series of photography which demonstrate the cleaned drainage. We have included <br />a representative number of photographs and may provide the full set if needed. <br />The drilling program was modified to eliminate or reduce the outflow from the waste dump <br />during drilling. We were not able to completely eliminate the discharge. The sump prevented <br />any additional loss to the drainage. However, we were able to reduce the amount of water used <br />from approximately 6,000 gallons per shift to less than approximately 1,000 gallons per day. <br />RPM. Inc., 9050 Old Tom Morris Cir., Highlands Ranch, CO 80129 Phone: (303) 854 -7499 FAX:(303) 660 -3852 Email: hlhumphries2,a comcast.net <br />