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prl <br />J. M. BECK & ASSOCIATES <br />6130 W. Vassar Way <br />Lakewood, Colorado 80227 <br />Mining & Environmental Engineering <br />May 25, 2011 <br />v <br />Mr. Michael A. Cunningham <br />Colorado Division of Reclamation, Mining, and Safety <br />1313 Sherman Street - Suite 215 <br />Denver, CO 80203 <br />RE: Permit No. M1994-117 (Gold Hill Mill) <br />t GC Resources LLC - Front Range Gold Project <br />tatus Report on Corrective Action Items <br />Dear Michael: <br />Telephone (303) 985-1521 <br />Fax (303) 985-1532 <br />E-mail: jmbeckpe@comcast.net <br />RECEIVE <br />MAY <br />tiO 01*10n of Reclamation, <br />Mining & Safety <br />AGC Resources, LLC ("AGC") herein provides the following summary discussion (with <br />appropriate attachments, where cited) relative to four (4) outstanding corrective action items <br />associated with the Gold Hill Mill (Permit No. M1994-117). These corrective action items evolve <br />from the sequence of correspondence that includes the Division's initial letter of January 12, <br />2011; AGC's response and request for extension letter of February 15, 2011; and, the Division's <br />March 9, 2011 status confirmation letter. <br />The status of each item is as follows: <br />Compliance Problem 1: Mill Tailing Discharged to Locations Outside of Approved Pond. <br />In response to a Division follow-up letter of March 9, 2011, AGC conducted requested sampling <br />of the tailing pond solids matrix and the Cy Eaton shaft location and submitted same for acid- <br />base accounting (ABA) laboratory analysis. Analytical results were provided (via electronic <br />transmittal on April 14, 2011) in conformance with the Division imposed deadline of April 15, <br />2011. <br />AGC, unless requested otherwise by the Division, still plans on completing field reclamation <br />activities at the Cy Eaton shaft off-permit disposition area by July 31, 2011 as originally stated in <br />AGC's letter of February 15, 2011; however, AGC awaits Division approval/authorization to do <br />so. As also stated therein, AGC considers the White Cloud shaft off-permit disposition area to <br />be satisfactorily reclaimed (based on concurring Division verbal comments on December 22, <br />2010) and no further action is planned at that location. Similarly, AGC considers those tailing <br />materials that were placed in underground stope locations to be non-retrievable and subject to <br />no further action. AGC seeks Division concurrence on these items in order to bring this <br />corrective action item to closure. <br />?;,p