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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 />June 8, 2011 <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Ji' Beck Executive Director <br />y.M Beck & Associates <br />6130 W. Vassar Wa Loretta E. Pineda <br />3' Director <br />Lakewood, CO 80227 <br />RE: Gold Hill Mill; DRMS File No. M-1994-117; Follow-up Regarding Tailings Depos? <br />Dear Mr. Beck, <br />The Division has received and reviewed the analytical results of the samples collected from the <br />Gold Hill Mill tailing pond and the Cy Eaton Shaft. The analytical results demonstrate that the <br />tailing material may be left in the prospect pits without a significant threat of pollutants being <br />released to the surface or subsurface drainage system. Therefore, the Operator may proceed with <br />final reclamation of the tailing disposal locations. Mill tailing was disposed of in the Cy Eaton <br />Shaft, the White Cloud Shaft and in the mine workings gf the Cash and Who Do Mine (File No. <br />M-1983-141). As noted in the inspection report dated une 12, 2009, the White Cloud Shaft has <br />been covered with organic material. The Cy Eaton shaft shall be backfilled, compacted and <br />graded to match the surrounding topography and to ensure positive drainage. In addition, the <br />reclaimed area shall be revegetated. <br />As for the tailing material which was placed in the underground stope locations, the Division <br />concurs with the Operator's assessment that the material is currently non-retrievable. Therefore <br />the Division will not require any further action at this time. <br />If you have any questions, please call me at (303) 866-3567 x8116. <br />Sincerely <br />, <br />e- <br />ichael A. . Cunni gham <br />Environmental Protection Specialist <br />CC: -l ony Waldron, DRMS <br />Stephanie Carter, BLM <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines