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~l es c, ~e,~, <br />~~. <br />GOLD MOUNTAIN METALS, INC `- <br />PO Box 29 Sharon Center, OH 44274 <br />330-703-8565 <br />December 4, 2006 -~ ~~ ~~ `~ <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman St <br />Room 215 <br />Denver, CO 80203 <br />1 `~ <br />-~-0 <br />RECEI~~~FD <br />DEC 0 8 2006 ~ <br />Division of Reclamation, <br />~-c ~. Mining and Safety ,~ <br />Subject: Revision to Permit M-1992-045 Per Requirement of 8/25/06 Inspection Report <br />Deaz Mrs. Erica Crosby: <br />Please fmd below the revision to Permit M-1992-045 for Gold Basin Mine as requested m your Inspection <br />Report from your visit to the mine site on 8/25/06. Per the request to clarify the subject permit on how water is <br />routed and recuculated and how impacts to the hydrologic balance with Lost Canyon Creek will be minimized, <br />we respectfully submit the requested information below. The information below is to be used in place of the <br />original wording contained in EXHIBIT C -Mining Plan, subsections #8 & #9 of Permit M-] 992-045. <br />Also included in this mailing is a check for $188.00 for payment of the required fees for the subject permit <br />revision. <br />New Permit Wording for EXHIBIT C - Miniog Plau, subsections #8 & #9 <br />8. The wash water used th the mining operation comes from a closed loop recirculation system. The <br />washing plant employed in the mining operation uses approximately 9000 gaVhr of water. The water <br />is supplied to the washing plant via a pump located in a recirculation/settling pond down grade of the <br />wash plant. The water leaving the wash plant flows via gravity through a small ditch from the wash <br />plant back to the recirculation/settling pond where it is then recycled back to the wash plant via the <br />pump. Natural runoff of snow melt and precipitation from the surrounding hillside replaces any minor <br />losses of water fmm the recirculation settling pond system. <br />9. The mining operation has no impact on ground water, because no ground water is encountered in the <br />mining operation. Also, no surface water is intercepted m the mining operation. Although the <br />headwaters of Lost Canyon Creek (Cashe Creek Ditch) originate on the properly above the mining <br />operation, the flow of this water through the affected area of the mining operation takes place in its <br />natural stream channel. The flow of Lost Canyon Creek is sepazated from the recirculation water used <br />in the mining operation's wash plant by an approximately 20 foot wide stone and earthen roadway <br />within the mined area. This roadway will be maintained 2-4 feet higher than the water level of Lost <br />Canyon Creek, thus providing a complete separation of the re-circulated mining water from the natural <br />stream channel to maintain the hydrologic balance of Lost Canyon Creek. <br />Sincerely, <br />Steven M. Ryba <br />Secretary & Treasurer, <br />Gold Mountain Metals, Inc <br />