2016-04-18_REVISION - P2013019 (2)

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would seem reasonable that the cost of installing the permanent safeguard on Portal#1 is still included in the financial warranty K&B has provided. K&B currently proposes to access only those workings that have existing access for sampling and prospecting activity. Currently, six(6) openings have existing access in safeguards. Should K&B elect to install access into any other mine openings or reopen any additional mine features, we will submit an application for modification to the current NOI or submit a new application. 6. The Applicant has stated that prospecting may include advancement of drifts and/or raises/winzes from existing underground workings subject to the total amount of material to be extracted The Division approved the Operator to remove a total of 250 cubic yards of material. Please specify the total volume of material which has been removed from the mine to date. The Operator has removed no more than 72 cubic yards of material from the mine (all areas)to date. 7. The Applicant has stated that the detached accessory structure(shed) located on the Rip Van Dam Lode and the office structure located on the Badger Claim will remain post prospecting for the use of the landowner. Please provide a signed and notarized statement from the landowner which demonstrates the landowner's desire to have these structures remain. At the request of K&B, the landowner sent the Division a notarized statement demonstrating the landowner's desire to have these structures remain post- prospecting. A copy of this affidavit is attached hereto. 8. The Applicant has stated, in an Adequacy Response letter dated February 4, 2014, that the mine working would be advanced ten feet to allow the core drill to fit into the drifts.Please specify if this advancement of the drifts has been completed. In addition, specify if the Applicant is proposing additional advancements of the mine workings under this modification application. Work has been completed in the upper level and no further advancement is proposed in that area. As indicated in the letter dated February 4, it may be necessary to perform additional work in the lower level to allow the core drill to be stationed within the existing workings. K&B does not intend to vary from the proposed and previously approved activity regarding advancement of workings. No additional development of mine workings is proposed under this modification application. DRMS NOI Mod.,Response 1 Page 16 of 17 4/18/2016