2015-03-04_PERMIT FILE - P2015005

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_AVCOLORADO Division of Reclamation, _ Mining and Safety Department of Natural Resources 1313 Sherman Street, Room 215 Denver, CO 80203 March 4, 2015 Peter Freedman AuPt Industries LLC P.O. Box 1424 Edwards, CO 81632 Nom CONFIDENTIAL RE: Notice of Intent to Conduct Prospecting Application; AuPt Industries Claim Sampling Program #1; File No. P- 2015 -005; Notice of Deficiencies Dear Mr. Freedman, On February 13, 2015, the Division of Reclamation, Mining and Safety (Division) received the Notice of Intent (NOI) to Conduct Prospecting Application for AuPt Industries, File No. P- 2015 -005. The Application was filed for review on February 13, 2015. Our review indicates the NOI application contains deficiencies as defined by Rule 5.1.3 of the Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, Metal, and Designated Mining Operations. The Division requires the information described below before we can approve the NOI application. The Applicant is proposing to process the mine tailings using gravity separation and a portable re- circulating water system. Hard Rock Rule 1.1(31) defines a mining operation as the development or extraction of a mineral from its natural occurrences on affected land. The term also includes the following operations on affected lands: transportation; concentrating; milling; evaporation; and other processing. Therefore, the proposed processing activities may only be conducted under a Reclamation Permit for a mining operation. The Applicant may either withdraw this NOI from further review and submit the appropriate Reclamation Permit or remove all processing activities from consideration under the NOI. Finally, the Applicant should note that prospecting does not include any single activity which results in the disturbance of a single block of land totaling 1,600 square feet or less of the land's surface, not to exceed two such disturbances of land per acre. Please respond. 2. The proposed prospecting plan calls for excavating 999 cubic yards of material from a waste dump. While there is no specific limit to the amount of material that may be excavated or moved under an NOI, it should be noted the Hard Rock Rules define prospecting as the act of searching for or investigating a mineral deposit. Please specify the type of analysis which will be performed to determine if the mine dump contains an economically viable amount of minerals and specify the volume of material required to make this determination. The amount of material proposed to be extracted or moved should correspond to the volume of material required to perform the specified analysis. Please respond. 3. The Applicant provided the Division with a letter from the U.S. Forest Service (USFS) dated January 30, 2015. The letter states your proposed operation may proceed under a NOI with the USFS provided access to the claim will be by foot only and all prospecting work is done with hand tools. The plan which was submitted to the Division for review specifies that prospecting will involve the CO New,, 1313 Sherman Street, Room 215, Denver, CO 80203 P 303.866.3567 F 303.832.8106 http: / /mining.state.co.us John W. Hickenlooper, Governor I Mike King, Executive Director I Virginia Brannon, Director * 1876