2011-11-23_REVISION - M1990057

• Permit No: M1990057
• IBM Index Class Name: REVISION
• Doc Date: 11/23/2011
• Doc Name: Notice of DMO
• From: DRMS
• To: Union Milling Company, LLC
• Type & Sequence: TR3
• Email Name: MAC
• Email Name: TAK
• Media Type: D
• Archive: No

DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
November 23, 2011
Mike Elder
Union Milling Company, LLC
6200 S. Vivian St.
Littleton, CO 80127
Dear Mr. Elder,
STATE OF COLORADO
COLORADO
D I V I S I O N O F
RECLAMATION
MINING
— &—
SAFETY
John W. Hickenlooper
Governor
Mike King
Executive Director
Loretta E. Pineda
Director
RE: Hopemore Shaft; DRMS File No. M- 1990 -057; Notice of Designated Mining Operation
On July 5, 2011, the Division of Reclamation, Mining and Safety (Division) notified you that the
above referenced operation may be a Designated Mining Operation (DMO). The Notice of DMO
status was provided to you following the review of Technical Revision No. 3 (TR3). Under TR3,-
the Mining Plan was revised to allow for the use of potassium amyl xanthate (PAX) in the
extractive metallurgic processing at the site. The Division met with Union Milling Company and
Calais Resources on July 25, 2011 to discuss the intent and the purpose of the law regarding
DMO designations. During the meeting, the Division concluded that a review of the DMO rules
and regulations, as they apply to the Hopemore Shaft, was warranted.
Based on a review of the operational conditions at the Hopemore Shaft (Union Mill), the
Division has determined, under criteria specified in Rule 1.1(14) of the Mineral Rules and
Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, Metal and
Designated Mining Operations (Regulations), that the Hopemore Shaft meets the definition of a
DMO. Under the authority of Rule 7.2.2 of the Regulations, the Division hereby notifies Calais
Resources Colorado, Inc. that the determination has been made, effective on the date of
this notice, that the Hopemore Shaft is a Designated Mining Operation.
The Division's determination is based on the following:
The site has the potential to release designated chemicals, specifically PAX, as a result of milling
operations. The use of PAX represents a potential threat to human health and the environment
and is considered to be a designated chemical as defined by Rule 1.1(13). Under Rule 1.1(14) of
the Regulations, a site will be assigned DMO status if "designated chemicals used in metallurgic
processing are present on- site ".
/2I4 MiC
Office of / Office of
Mined Land Reclamation
Denver • Grand Junction • Durango Active and Inactive Mines