CGFIA-From The Colorado Division of Reclamation, Mining and Safety 7
• Collect an undisclosed quantity of samples.
In this phase of the Project exploration program, Colorado Goldfields plans to collect up to 250 channel
samples from the sides and back of existing underground workings. Each sample will be placed in
sample bags at the point of sampling and will contain up to one pound of chipped rock material.
Individual channel sample sites up to 2 inches deep by 3 inches wide by 12 inches long may be chipped
to obtain samples. Small areas of fresh sulfide mineralized material will be exposed by this activity.
None of the sample sites are expected to be exposed to running water and are not expected to result in
any degradation of water quality in the mine or in the mine discharge.
• General and undefined site clean -up.
The general site clean -up planned will consist of removal of old "junk" materials lying around on the
mine surface area including old boards and timber, old scrap metal, old metal ventilation piping, old
steel structural shapes (such as angle iron) that formerly supported snow sheds, old galvanized metal
siding, old discarded bridge timbers, old sections of steel pipe and some "junk" equipment. All of these
materials will be hauled by truck from the mine site for disposal at a re- cycling depot, to a regulated
land -fill location or for sale to others.
The removal of these items and materials from the mine site will not adversely affect ground water
quality and will support and result in improvements in the Storm Water Management Plan. 1 Any areas
that may result in disturbance of site rock /soils materials will be re- graded in accordance with the Storm
Water Management Plan.
The Storm Water Management Plan will be revised as necessary to incorporate the resulting
improvements in site drainage management.
• Remove sludge from the sediment pond and bury the sludge in a trench excavated into the
existing waste rock stockpile.
The proposed plan for disposal (burial) of the sediment pond sludge will not result in any increase in
metal loading (degradation) to the Animas River.
It has been well established, as the Division of Reclamation, Mining and Safety has pointed out in their
Deficiency Letter dated September 21, 2011 (NOl P- 2011 -027), that the existing Silver Wing Mine dump
(which was placed prior to 1904) is believed to contribute metal loading and some degradation to water
quality in the Animas River as it flows by the site. There are other potential sources of this degradation
(such as seeps of metal laden water coming from the bottom of the river channel — which has been well
established by other studies by the USGS in the Upper Animas River basin); however, the Silver Wing
Mine dump is an obvious possible source since it is known to contain significant amounts of metal
sulfides.
The current Storm Water Management Plan contains a provision for removal of this dump to the Pride
of the West Mill for processing during the tenure of a previous operator. The Mined Land Reclamation
1 By way of background, there is an existing Storm Water Discharge Permit and associated Storm Water
Management Plan in place for the site — COR- 040176. The permit is currently held by Silver Wing Company, Inc.,
former owner of the Silver Wing Mine, and will be transferred to Colorado Goldfields Inc.
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