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w IZIO GRANDE <br />■ - _ SILVER, INC. <br />Division of Reclamation, Mining, and Safety <br />Attention: Minerals Program <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />September 8, 2014 <br />RE: Bulldog Mine Permit No. M- 1977 -215 <br />Technical Revision TR -23, Construction of Drill Core Storage Pads and Access Road. <br />Minerals Program, <br />Rio Grande Silver is proposing to build a new drill core storage area near our current Tailing Pond 2 (TP- <br />2) to relocate our existing drill core inventory and to accommodate future drill core storage for the San <br />Juan Silver project. The facility will consist of the improvement of an existing disturbance (Area 1 -on <br />existing road) and construction of a larger storage area (Area 2) with an access road (Road). The storage <br />areas are proposed to be flat, graveled pads to accommodate pallets of diamond drill core to be stored <br />in tightly spaced rows. The pads are designed to be accessible by truck and heavy equipment for the <br />purposes of moving, storing, and accessing the past and future drill core for the San Juan Silver Project. <br />Existing Conditions <br />The site proposed for Area 1 is on an existing disturbance. The area proposed for Area 2 and the access <br />Road is currently undisturbed. See Table 1 for disturbed acreages and totals. <br />FACILITY <br />LENGTH <br />(feet) <br />PRIVATE <br />(acres) <br />US Forest Service <br />(acres) <br />TOTAL <br />(acres) <br />Area 1 <br />N/A <br />0.29 <br />0 <br />0.29 <br />Area 2 <br />N/A <br />0.69 <br />0 <br />0.69 <br />Road <br />325 feet <br />0.25 <br />0 <br />0.25 <br />Area 3 <br />N/A <br />N/A <br />N/A <br />N/A <br />TOTALS <br />N/A <br />1.23 <br />0 <br />1.23 <br />Proposed Action for TR -23 <br />The proposed work is located on patented millsite claims MBD 11 and MBD 16 in M- 1977 -215 Permit <br />Area "J" of M- 1977 -215 (Figure 1), located in the SW N, Section 36, R1W, T42N, NMPM. Proposed work <br />will consist of dirt work by heavy equipment, applying road base, compacting road base, installing <br />sediment control (waddles, culvert, etc.) and placing two shipping containers. Rio Grande Silver <br />proposes to improve the existing disturbance of Area 1 (see Figure 2) to accommodate two shipping <br />containers and a separate improved area for storage and will be benched into two tiers of <br />approximately 75' x 75' each, with the two shipping containers placed on the north bench and storage <br />on the south bench. Area 2 is proposed to be located on a broad flat topped hill. Drill core is stored on <br />pallets with a dimension of approximately 4' x 4'x 4'. The Road area will consist of access to Area 2. All <br />areas will have 6" of road base gravel applied and compacted and all appropriate sediment control <br />measures employed. Area 3 (Future, green) as seen on the maps is not included in this technical <br />revision (TR -23) and is only shown as future expansion potential. <br />625 USFS Road 504.1A P.O. Box 610 Creede, CO 81130 <br />719 - 658 -1080 Fax 719 - 658 -1082 <br />