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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />August 29, 2008 v <br />Bill Ritter, Jr. <br />Governor <br />Mr. Ryan J. McHale Harris D. Sherman <br />Vice-President Executive Director <br />? <br />Venture Resources, Inc. Ronald W. Cattany <br />Division Director <br />P.O. Box 1974 Natural Resource Trustee <br />Idaho Springs, CO 80452 <br />Re: File No. M-2008-037, Emma Lode MS#7261, 110(2) Decision Letter - Conditions, Financial and <br />Performance Warranty Request - Hard Rock Mining Operation <br />Dear Mr. McHale: <br />On August 28, 2008, the Division of Reclamation, Mining and Safety approved your 110(2) mining permit <br />application. The conditions to the approval are noted in the stipulations below: <br />Stipulation No. <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Description <br />In accordance with Hardrock Rules 3.1.6(1), 6.3.3(1)(1), and 6.3.4(1)(e) that require the <br />Division to protect the prevailing hydrologic balance, applicant must provide a comprehensive <br />geochemical characterization of the material that will be backfilled. The Division will require <br />sampling and analyses of in situ ore and waste rockfrom the underground workings, including <br />characterization of the processed material proposed for backfill. The geochemical <br />characterization must occur as soon as reasonably practical after access is gained for <br />sampling. <br />2. Operator is prohibited from backftlling into the mine any material that is not generated <br />specifically from the permitted Emma Lode shaft. <br />The Division will provide protocols for characterization testing at a later time. The characterization will include <br />standardized tests such as acid-base accounting and accelerated weathering tests such as the synthetic <br />precipitation leaching procedure. <br />The amount of financial warranty set by the Division for this site is $6,050.00. You must submit a financial <br />warranty in this amount and a performance warranty in order for us to issue a permit. In the event you have <br />requested a financial warranty form, we have enclosed it in this letter. If you have not, please select a type of <br />financial warranty from Rule 4.3. Then contact us so that we can provide you with the appropriate warranty <br />form. We have enclosed a performance warranty form with this letter for your use. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand lunctinn . n,iranon a,ti- -4 1-ti.m AA;-