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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />March 6, 2013 <br />Mark Steen <br />Gold Hill Mines, Inc. <br />P.O. Box 1523 <br />Longmont, CO 80502 <br />RE: Cash and Who Do Mines; DRMS File No. M- 1983 -141; Technical Revision No. 7; <br />Adequacy Review <br />Dear Mr. Steen, <br />STATE OF COLORADO <br />John W. Hickenlooper <br />Govemor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />The Division of Reclamation, Mining and Safety (Division) received Technical Revision - 7 for <br />the above referenced site on February 15, 2013. The decision date for this Technical Revision is <br />March 18, 2013. The Division has reviewed the Technical Revision Application and has the <br />following comments: <br />1. The Cash Well has historically been used to dewater the Cash Mine and to collect water <br />samples from the Cash Mine pool. The Division concurs with the Operator's proposal to <br />eliminate this sampling point from the water monitoring program. The Operator has stated <br />that water will be sampled from the Third Level Adit to determine water quality in the Cash <br />Mine. Please specify the exact location within the adit where water samples will be collected. <br />The previous Operator did not provide the Division with a copy of a well peunit for the Cash <br />Well. During an inspection conducted on December 22, 2010, the Division cited a problem <br />for operating an unpermitted well. The Operator was to obtain a well permit from the Office <br />of the State Engineer or seal the well and provide the Division with a Well Abandonment <br />Report by September 30, 2011. Gold Hill Mines is now responsible for complying with this <br />outstanding corrective action. Please notify the Division as to how this outstanding corrective <br />action will be resolved. <br />2. The Operator has proposed eliminating the sampling point in Cash Gulch and the sampling <br />point in Unnamed Gulch. Both of the gulches are ephemeral and only have flowing water <br />during precipitation events or during spring runoff. The Third Level Adit is now discharging <br />mine water which has the potential, at certain times of the year, to report to either the Cash <br />Gulch or the Unnamed Gulch. The Division has not observed water from the Third Level <br />Adit flowing directly into the Cash Gulch or Unnamed Gulch; however, it has not been <br />conclusively demonstrated that the mine water is not reporting to these gulches at some point <br />down - gradient of the adit. Therefore, the Division believes that monitoring should continue <br />at these locations and does not approve the elimination of the sampling points. <br />Office of <br />Mined Land Reclamation <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />—&— <br />SAFETY <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />