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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 30, 2011 <br />Mr. Brian Egolf <br />Emerald Mining & Leasing, LLC <br />P.O. Box 628 <br />Creede, CO 81130 <br />Dear Mr. Egolf: <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO` <br />• <br />[ X t 7 , mi l 1 <br />• <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pirleda <br />Director <br />Re: Bulldog Mine Operation, Permit No. M- 1977 -215, Technical Revision No. TR -17, Preliminary <br />Adequacy Review Letter. <br />On August 17, 2011 the Division of Reclamation, Mining and Safety received the Technical Revision <br />named above, which involves the proposed construction of two temporary, lined holding ponds for <br />containment of the anticipated mine pool water that would be pumped is anticipated to be encountered <br />during construction of a new decline into the Bulldog Mine workings. The plan for construction of the <br />decline and the dewatering plan are not included in this technical revision. This technical revision for the <br />holding ponds proposes revisions to the mining plan and the reclamation plan. <br />The Division is reviewing the technical revision to determine whether it is adequate for approval. During <br />the Division's review several issues and concerns have been identified, primarily concerning the integrity of <br />the constructed holding ponds and the water quality. As mentioned above, although this TR -17 does not <br />include the dewatering and filling of the holding ponds, it is appropriate to identify possible future <br />hydrologic concerns now that may require time to address. Please address each of the technical items listed <br />below. <br />Regarding hydrologic issues of surface water and groundwater, it may be helpful to refer to Hard <br />Rock/Metal Rules 3.1.6, 3.1.7 and 6.4.7. For structural and containment issues concerning the liners, please <br />refer to Hard Rock/Metal Rule 6.5. The Bulldog Mine permit is not currently permitted as a designated <br />mining operation (DMO) and is normally exempt from requirements under Hard Rock/Metal Rule 7. <br />However, portions of Rule 7 are pertinent to this revision, specifically regarding the engineering design, <br />construction, and certification of the lined holding ponds. Please see Hard Rock/Metal Rules 7.3 and 7.4. <br />The plan is for constructing two separate holding ponds, with similar embankments constructed of onsite <br />earthen materials with containment assured by impermeable liner systems. The basic design includes <br />grading and shaping to create the necessary depression and embankment. In general, the Division will <br />require that the pond bottom and sides be compacted and smooth (free of sharp protrusions) to avoid <br />breaching or rending of the liner when the pond is filled. It is likely that the earthen materials that comprise <br />the 9360 pad, from which Pond #1 will be constructed, contain some coarse material that could perforate or <br />breach the liner, and should be avoided. Please describe how the sub -base (surfaces of the floor and sides) <br />will be adequately cleared of such materials. <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />