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<br />AGC RESOURCES, LLC <br />4450 Arapahoe Avenue - Suite 100 <br />Boulder, CO 80303 <br />FRE-CFn <br />FEB 15 Z 011 <br />Division of r.,euw nation, <br />Mining and Safety <br />February 15, 2011 <br />Mr. Michael Cunningham <br />Division of Reclamation, Mining, and Safety <br />1313 Sherman St. - Room 215 <br />Denver, CO 80203 <br />RE: AGC Response to January 12, 2011 No ice s <br />oUnresolved Problem <br />Gold Hill Mill (Permit No. M-1994-17) <br />Dear Mr. Cunningham: <br />We are in receipt of the January 12, 2011 Division of Reclamation, Mining, and Safety (DRMS) <br />letter and the related Inspection Report (under separate cover), both of which reference certain <br />"unresolved problems" at the Gold Hill Mill (Permit No. M-1994-117). This letter shall serve as <br />AGC's update on the status of each problem/corrective action, as well as our request (where <br />necessary) for extension of the imposed February 15, 2011 corrective action date. <br />AGC recognizes the importance of maintaining site-wide compliance at the Front Range Gold <br />Project, and we regret that the complexities of the site permitting process have left AGC unable <br />to fully resolve all of the outstanding site-related issues to date. Be assured that intensive <br />efforts are ongoing on a number of fronts, and that there has been significant progress made. <br />AGC is committed to establishing site compliance with DRMS and all other agencies/entities, as <br />applicable, and we provide the following responses to each of the cited concerns. However, <br />due to performance constraints imposed by the seasonal conditions at the site, as well as the <br />complex inter-relationships between the specifically cited concerns and other ongoing site <br />permitting efforts, AGC finds it necessary to respectfully request extension(s) of the February <br />15, 2011 corrective action date(s) where so indicated below. <br />GOLD HILL MILL (Permit No. M-1994-117) <br />(Letter Dated January 12, 2011 RE: Unresolved Problems) <br />The following four items were noted in the January 12, 2011 letter as a result of the December <br />22, 2010 site inspection. <br />1) Problem: Mill tailing discharged to locations outside of the approved pond. <br />Corrective Action: Provide maps and/or cross sections showing the location where <br />tailings were discharged to surface pits and underground mine workings. In addition, <br />provide the volume of tailing discharged at each location. <br />? I'D <br />?ti