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�2 <br />RIO GRA NDE <br />SIILV ER„ 1NC <br />November 8, 2012 <br />Bob Oswald <br />Division of Reclamation, Mining, and Safety <br />691 CR 233 <br />Suite A -2 <br />Durango, CO 81301 <br />RE: Clarification of 20.12 Annual Report for Bulldog Mine Operation, Permit No. <br />M- 177 - <br />9215 v. <br />Dear Mr. Oswald, <br />Thank you for your email (dated November 7, 2012) regarding the 2012 Annual Report for the <br />Bulldog Mine Operation, Permit No. M- 1977 -215. We appreciate the opportunity to address <br />your comments. <br />Question #1: The report form asks if the bond is sufficient, but the amount shown is not the full <br />required amount. I know RGS sent in the increase for TR -19, and though it still doesn't show up <br />on the data I have access to, I assume it's being reviewed by Barbara Coria. Can you give me <br />any update for the other increase (for TR -20)? <br />Response #1: A check for $6,043.00 was sent to DRMS to cover the additional <br />reclamation bond amount for the TR -19. A check for $3,249.00 was sent to DRMS to <br />cover the additional reclamation bond amount for the TR -20. This brings the total <br />reclamation bond amount for the Bulldog Mine Operation to $127,104.00. <br />Question #3: The water monitoring is carried out through sampling the wells, but I'm not clear <br />on all of their locations, specifically BD -MW and HW -4. In TR -16 (which involved the <br />temporary well on the road up to the 9700 portal) you stated that sampling would occur from <br />HW -3 that is 418 feet north of the temp well, so I know where HW -3 is. How about those other <br />two? <br />H w 4— <br />Response #3: A map showing the locations of BD -MW, HW -3, and +19i-3-is attached as <br />Figure AA. n <br />Question #4: Any thoughts about the water depths graphed for those wells in 2012? Are they <br />behaving normally for seasonal changes? <br />Response #4: Since the dataloggers were installed late in 2011, we do not have historic <br />data to compare to these results. However, it seems reasonable that the water level would <br />be highest in mid- to late May (during runoff) and would be lower in the early spring and <br />late fall. With respect to HW -4 (representing the mine pool), it would seem reasonable <br />that the water level would fluctuate. There were also some issues with the placement of <br />112 East 12 "' Street P.O. Box 610 Creede. CO 81130 <br />719- 658 -1080 Fax 719 -658 -1082 <br />