2013-07-05_PERMIT FILE - M2013028

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