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January 22. 2016 <br />OURAY SILVER MINES INC. <br />PO Bo\ 564. 1900 Main Street. t nit 1. Oura). Colorado. t;S \ 81427 <br />1 c L 970-325-9830 - 1 a\. 970-325-9824 <br />RECEIVED <br />'-'JAN 262010 <br />ViA U.S. Mail and Email <br />DIVISION OF RECLAMATION <br />Travis Marshall. Environmental Protection Specialist MINING AND SAFETY <br />Colorado Division of Reclamation. Mining. and Safety <br />1313 Sherman Street. Room 215 <br />Dem er. CO 80203 <br />r to(__ <br />RE: Notice of Temporary Cessation 7, 'Jt ` <br />The Revenue Mine (the Mine). located 5 miles southwest of Ouray. CO. which is owned and <br />operated by Ouray Silver Mines Inc. (OSMI) under pertnit M2012032 (Permit). has been in a <br />state of reduced activity since late -summer 2015. While site maintenance. housekeeping. and <br />eater quality sampling and reporting, continue at the Revenue Mine no extraction or blasting has <br />occurred since September 9. 2015. Therefore. this letter summarizes the current site status and <br />pro\ ides the regulatory notice elements required under DRMS Rule § 1.13.5 for temporary <br />cessation. However. OSMI is planning a drilling campaign and metallurgical process <br />improvements for 2016. OSMi. as the new owner. is invested in bringing the Mine to production. <br />and is actively working towards that goal. Based upon OSMI's continued development efforts. <br />continued environmental sampling. as well as difficulty in accessing and inspecting the site <br />during the winter. OSMi and the Division of Reclamation. Mining. and Safety (DRMS) have <br />reached a verbal agreement. as discussed on January 20. 2015 (B. Greer pers. comm.), to revisit <br />the need for a notice of temporary cessation on June 30. 2016. <br />Current Site Status <br />Since September 9. 2015 there have been a total of 14 people working at OSMI. including those <br />employed in administration at the office in the town of Ouray. An additional four contractors are <br />employed by OSMI. <br />1 he current OSMI employees perform all permit -required maintenance. including but not limited <br />to water management. road maintenance. avalanche control. snow removal, and regular <br />stormwater and spill control measures. inspections. and repairs. Additional!). they perform <br />permit required sampling and reporting. <br />OSMI had not yet received a mill certification as of September 2015. and had not commenced <br />full scale extractive metallurgical processing. Mill certification was received in November 2015. <br />Regulator) Notice Elements <br />The notice information required by DRMS Rules § 1.13.5(2) is as follows: <br />Paye 1 of 2 <br />4024094.2 <br />