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July 2, 2013 <br />Mr. John M. Kunst <br />PO Box 664 <br />Fairplay, CO 80440 <br />Dear Mr.Kunst: <br />Thank you for your letter dated June 10, 2013. Your concerns are appreciated and mirror <br />those of Tom Kaldenbach, Senior Reclamation Specialist for the State of Colorado. A <br />copy of his adequacy comments review is included with this letter, along with a drawing <br />of the French drain design. <br />The location of the site is in a large depression that runs generally north to south with the <br />eastern edge of the claim area sitting higher than the proposed are of the operation. <br />Storm water from above the site flows down the natural channel onto the mine and into <br />the ponds. A hydrology firm has been retained to model a 100 year storm event (or <br />snowmelt equivalent) to ensure that the ponds will have adequate capacity to handle the <br />inflow. A large ditch will be dug in front of the eastern tailings area to intercept any run- <br />off from the mine face. <br />The two ponds that are currently available for the plant to draw from to operate receive <br />their water from snowmelt, which is the only source of water for the ponds. Tailings will <br />not be allowed to foul the ponds. <br />The larger pond is positioned directly on bedrock, so there is little opportunity for the <br />water to reach the lower aquifers. The height of the rim of the pond is approximately 8 -9 <br />feet above the water level (freeboard). If the hydrologists indicate this would be <br />insufficient to handle a 100 year event, the pond rim would be built up to accept greater <br />inflow. An additional two feet of freeboard would be added to insure containment. If the <br />smaller of the two ponds needed to be enlarged, it would be drained during the course of <br />the full season and deepened to bedrock. <br />The tailings pile on the eastern edge of the property will consist of dry screened material <br />ranging in size from boulders to 4 inch rock. The material will be stacked at no greater <br />than a 3:1 slope and the height of the pile will not exceed 15 feet. <br />