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r <br />DIVISION OF RECLAMATION, MINING AND SAFE 1Y <br />Department of Natural Resources <br />131 3 Shernwan St., Room 215 <br />Denver, Color") 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 8 -12 -8106 <br />June 15, 2011 <br />Brian Morris <br />Rio Grande Silver, Inc. <br />PO Box 610 <br />Creede, CO 81130 <br />Re: Notice of Intent (NOI) to Conduct 1 <br />Modification MD -1, Approval to C <br />Dear Mr. Moms, <br />r <br />STATE OF COLORADO <br />COLORADO <br />0 1 V I S 1 0 N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. PiAeda <br />Director <br />g for West Equity Project, DRMS File No. P -2010 -015, <br />Prospecting. <br />The Division has reviewed the NOI modification na ed above, and finds that it meets all requirements. The <br />Division has therefore approved the modification, effective on June 15, 2011. The reclamation costs associated with <br />this modification have been estimated to be $17, 552 Please see the enclosed reclamation cost estimate packet, and <br />notify me promptly if you notice any errors or omissions. The figure shown on the cost estimate is in addition to the <br />amount of bond already obligated toward this NOI. <br />The original NOI was initially approved on June 24, 010, and the bond amount was estimated to be $16,978. Rio <br />Grande Silver, Inc. posted Statewide Prospecting Bond #6575235 in 2008 in the amount of $269,318. That bond was <br />accepted by the Division. The bond is still in place, and though there are still several other NOIs currently covered <br />under this bond, a sufficient amount is still available or the additional costs associated with this NOI modification. <br />The bond amount required for this NOI has been inc ased to include the costs of this NOI, and the new total is <br />$34,530. Since the bond is already posted, the Di sion has granted its approval for NOI modification MD -1, <br />and continued prospecting at the West Equity Pr 'ect may commence. <br />Please be reminded that all other conditions of the <br />associated fees, and file permanent abandonment n <br />copy of the abandonment report form is <br />website: www.mininR.s%W.co.us/. r-- <br />Thank you for the consistent quality of t <br />Division's Durango field office: 691 CR <br />Sincerely, <br />Bob Oswald <br />Environmental Protection Specialist <br />Office of <br />Mined Land Reclamation <br />nal NOI, as well as requirement to file annual reports and the <br />.s for all drill holes, will remain in full force and effect. A <br />RECEIPT <br />FROM <br />DATE Z NO. 4 8 p U <br />X10 <br />ADDRES1 60 <br />FOR �rrtt,la�+t <br />Ac <br />ounrt <br />AMT. Of <br />ACCOUNT <br />AMT. <br />PAID <br />BAoul <br />0— <br />0 CASH <br />0 CHECK <br />O MONEY <br />ORDER <br />Denver F Grand Junction • Durango <br />BY %� <br />81820 <br />Office of <br />Active and Inactive Mines <br />