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Michael A. Cunningham <br /> September 15, 2017 <br /> Page 2 <br /> 5. 1 spoke briefly today with Corey DeAngelis, Assistant Division Engineer, Water <br /> Division One, which includes Park County. I described our NOI prospecting plans <br /> and asked his guidance regarding the term "immediately" in regard to the <br /> requirement to backfill any prospect trenches that encounter ground water. He <br /> said that, for purposes of regulation by the state water engineer, backfilling within <br /> 72 hours of the water exposure would be considered as "immediate." Following <br /> that guideline, then, 1 hereby commit to backfill any water exposing trenches two <br /> feet above the water level within 72 hours. Attached is a copy of Mr. DeAngelis's <br /> e-mail to me following our discussion.. <br /> 6. 1 expect a swell factor of around 30% for the material dug from the exploration <br /> trenches. If we remove samples equal to the swell, we can then retain the <br /> original ground profile when the trenches are backfilled.. If we remove less, there <br /> will be a slight hump in the reclaimed area. If we remove a sample volume <br /> greater than the swell, there will be a slight depression. I estimate that these <br /> effects will be not more than two feet above or below the original ground surface, <br /> and they will extend about six feet away from the trench on both sides. I have <br /> included this enlarged affected area in my calculation of reclamation <br /> requirements. <br /> 7. The Goldpark No. 1 claim is far removed from human occupation or activity, and <br /> we have encountered neither domestic nor wild large animals in our time on the <br /> prospect. Nevertheless, safety around the trenches is a major concern. If we <br /> elect to keep a trench open for more than a day, we will erect a temporary fence <br /> with T-posts, rope, and warning flags and signs, about three feet away from the <br /> open trench. <br /> 8. As you have requested, we will specify a reclamation seed mix without crested <br /> wheatgrass, hard fescue, or Canada bluegrass. <br /> 9. The mulch I had in mind has been used, I believe, by CDOT on highway road <br /> cuts a number of places in Colorado. I will attempt to obtain a description of the <br /> material. <br /> 10.Per the recommendation of the CDRMS, we will stockpile the topsoil downstream <br /> of the trenches and will place the sample material on the upstream side. <br /> 11.The NOI states that up to 1,000 CY of material may be moved during the <br /> prospecting operations. We cannot accurately predict at this time how much of <br /> the material might be removed from the claim, However, I would guess that <br /> perhaps 10-100 CY might be removed for testing. The gold content of placer <br /> deposits is notoriously erratic, and the testing of large samples is essential to <br /> their prospecting and evaluation. <br />