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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 />Operator: <br />eM I l I ? Z_ Z" -t -'� <br />STATE OF COLORADO <br />PERFORMANCE WARRANTY <br />Gold Basin Mine, LLC <br />Operation: Gold Basin Mine <br />Permit Number: M -1992 -045 <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />This form has been approved by the Mined Land Reclamation Board ( "Board ") pursuant to <br />the Mined Land Reclamation Act (C.R.S. § 34 -32 -101 et. seq.) ( "Hard Rock Act') and <br />associated Rules (2 C.C.R. 407 -1) ( "Hard Rock Rules') and the Land Reclamation Actfor the <br />Extraction of Construction Materials (C.R.S. § 34 -32.5 -101 et. seq.) ( "Construction Materials <br />Act') and associated Rules (2 C.C.R. 407 -4) ( "Construction Materials Rules'). Any alteration <br />or modification of this form, without approval by the Board shall result in the performance <br />warranty being invalid and result in the voiding of any permit issued in conjunction with such <br />invalid performance warranty and subject the operator to cease and desist orders and civil <br />penalties for operating without a permit pursuant to sections 34 -32 -123, C.R.S. of the Hard <br />Rock Act and 34- 32.5 -123, C.R.S. of Construction Materials Act. <br />KNOW ALL MEN BY THESE PRESENTS, THAT: <br />WHEREAS, the Colorado Mined Land Reclamation Act, C.R.S. § 34 -32 -101 et seq. (the <br />" Hardrock Act "), as amended, and the Colorado Land Reclamation Act for the Extraction of <br />Construction Materials, C.R.S. § 34- 32.5 -101 et sew. (the "Construction Materials Act "), as <br />amended (collectively the "Acts "), provide that no permit may be issued until the Mined Land <br />Reclamation Board (the 'Board ") receives a performance warranty consisting of the Operator's <br />written promise to comply with the requirements of the Hardrock or Construction Materials Act, <br />whichever is applicable. <br />WHEREAS, Gold Basin Mine, LLC (the "Operator "), has applied for a <br />permit to conduct a mining operation known as Gold Basin Mine <br />(the "Operation ") on certain lands in Chaffee County, Colorado. These <br />lands are described in the permit application, as amended and supplemented, and are referred to <br />herein as the "Affected Lands." <br />WHEREAS, in its application for the permit, the Operator has agreed to be bound by all <br />requirements of the Hardrock or Construction Materials Act and all applicable rules and <br />regulations of the Board, as amended from time to time. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and <br />Inactive Mines <br />