2010-07-27_PERMIT FILE - M2009076 (12)

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• Hard Rock/Metal Mining Permit Application Limited Impact Designated Mining Operation (I 10(d)) Venture Resources, Inc. - Hukill Gulch Millsite Revision 1: July 27, 2010 Exhibit C - Mining Plan Project Summary: i v / The proposed Venture Resources Hukill Gulch Milisite project will be involved in operating a mineral processing mill and constructing a tailings impoundment to begin cleaning up and processing pre-existing abandoned mine waste rock and/or ore for trace precious metal content and environmental remediation. The CO DMG has done extensive work in analyzing the abandoned mine waste rock problem in this vicinity and produced the "Reclamation Feasibility Report - Virginia Canyon", December 2001 (attached). Prior to that, the EPA also has analyzed the situation, and a summary can be found in their EPA Record of Decision, ROD R08- 88/019, 1988 (attached). Phase I of operations, the scope of this permit application, employs the use of a mobile mineral processing mill (40- 80 ton/day), construction of a tailings impoundment and processing approximately 8,000 tons of pre-existing abandoned mine waste rock located within the affected area of the proposed Tailings Impoundment (see Exhibit A & E drawings). Additionally, abandoned mine waste rock and/or similar ore may be imported for processing from other locations. Prior to impounding processed imported material tailings (of a similar geology and mineral composition as described further in this exhibit), a waste stream characterization will be done by Venture Resources that will be • logged in a record for future reference. It shall be clearly understood that a permit modification will not be necessary for milling similar ore of similar mineralogy from imported locations. Phase I will determine the technical and economic feasibility of the proposed operation. Once success has been determined, Phase II will be evaluated to construct a permanent 400 ton/day facility within the Ownership Boundary in Exhibit A. In that event, Venture Resources understands that this permit will need to be modified/amended to reflect the newly affected area changes of a permanent facility. The Venture Resources Hukill Gulch Millsite project has two specific areas that will be affected by mining operations. Exhibits A and E identify these areas as "Tailings Impoundment" and "Mobile Mill Site". The proposed operation will not place wastes below or into surface water or ground water structures. The reason for applying under Designated Mining Operation criteria is very distinct and should be kept in the forefront of thought during evaluation: 1. There is approximately 8,000 tons of pre-existing mine waste rock to be processed within the affected area of the Tailings Impoundment. Its initial disturbance justifies consideration of a Designated Mining Operation. However, once processed, the resultant tailings are analyzed to be essentially inert and NON- acid forming. 2. There is limited (200 ton), sheltered (30' x 32') stockpile storage of feedstock located at the Mobile Mill Site. Because of the storage of potentially acid forming material, a Designated Mining Operation evaluation is prudent. It shall be demonstrated in this application that careful engineering design has been applied to mitigate this potential. 3. NO designated chemicals are used in the proposed mining operation or mineral processing. Venture Resources wishes to appeal to the DRMS Office and Board to recognize this and apply the provisions set forth in 6.4.20(e) which states: • Page 1 of 35