2013-06-11_PERMIT FILE - P2013009

• Permit No: P2013009
• IBM Index Class Name: PERMIT FILE
• Doc Date: 6/11/2013
• Doc Name: NOTICE OF DETERMINATION
• From: DRMS
• To: OPERATOR
• Email Name: GRM
• Email Name: AJW
• Email Name: WHE
• 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]
June 11, 2013
STATE OF COLORADO
COLORADO
DIVISION OF
RECLAMATION
MINING
SAFETY
John W. Hickenlooper
John M. Clement Govemor
Executive VP & General Council Mike King
Ouray 79 Mining, LLC Executive Director
P.O. Box 1917 Loretta Weda
Forney, TX 75126 Director
RE: Notice of Determination for a Notice of Intent to Conduct Prospecting, Wanakah
Mine, NOI File No. P- 2013 -009
Dear Mr. Clement:
Pursuant to Rule 5.1.1(2) of the Mineral Rules and Regulations of the Colorado Mined Land
Reclamation Board for Hard Rock, Metal and Designated Mining Operations (Rule) , the
Division of Reclamation, Mining and Safety (Division) has determined the majority of the
activities proposed in the above referenced NOI application are development and mining
activities, not prospecting. With the exception of the five surface drill holes and underground
core drilling the proposed activities exceed the scope of prospecting activities, as defined under
CRS Section 34 -32- 103(12) and Rule 1.1(43). The proposed reopening of multiple mine portals;
rehabilitation and/or expansion of existing underground mine workings; construction of an
underground incline and slusher drifts; construction of an underground shop area; construction of
underground storage areas for fuel, lubricants and/or explosives; and the surface disposal of
refuse from underground mining are mine development and/or mining activities, as defined
under CRS Sections 34- 32- 103(4) and (8) and Rule 1.1(31). As such, the Division cannot accept
the NOI as submitted. Pursuant to Rule 5.1.1(2), any appeal of this determination shall follow
the procedures set forth in Rule 1.4.11.
During and onsite inspection on June 4, 2013 representatives for the prospector noted there was a
desire to move forward with scaled back drilling activities to investigate the commercial values
of the historic ore body prior to submission of a mining permit. The Division requested from the
prospector a written proposal for review outlining an underground core drilling program with
minimal surface disturbance and no deposition of waste or ore materials on the surface.
After careful review of the written proposal received on June 6, 2013 the Division has
determined that the revised activities would be classified as prospecting and not development as
defined by CRS 34 -32- 103(4). Due to language in Rule 5.1.1 (3) modifications can only be
addressed for "existing" NOIs. Therefore the prospector must submit a new NOI application
which is limited in scope to prospecting activities discussed for formal review and approval.
Staff has requested that your application fee of 586.00 be returned to you and has initiated the
refund process. Please find enclosed your financial warranty check for $6,000 which was not
processed. As a matter of record, the NOI submittal, P- 2013 -009 has been denied.
Office of Office of
Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines