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7. Prospector failed to pay the annual fees or submit the annual reports <br /> and maps by the anniversary date or at any time since. <br /> 8. On June 22, 2017, the Division mailed a Reason to Believe a Violation <br /> Exists letter to the Prospector, informing Prospector of the possible violation and <br /> providing details regarding a hearing on this matter scheduled for July 26, 2017. <br /> 9. On July 24, 2017, the Division received its June 22, 2017 Reason to <br /> Believe a Violation Exists letter by return mail from the U.S. Postal Service, <br /> marked "Return to Sender— No Such Number — Unable to Forward." <br /> 10. Prospector failed to submit annual reports, fees, and maps, as required <br /> by sections 34-32-116(4) and -127(2)(a), C.R.S. and Rule 5.6(1) of the Mineral Rules <br /> and Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, <br /> Metal, and Designated Mining Operations ("Rules"). <br /> 11. The NOI includes a performance warranty in which Prospector agreed <br /> that all prospecting operations shall be in compliance with the Act and all rules and <br /> regulations promulgated pursuant to the Colorado Mined Land Reclamation Act, <br /> Article 32 of Title 34, C.R.S. ("Act"). Prospector's violations of section 34-32-116(4), <br /> C.R.S. and Rule 5.6(1) constitute Prospector's default under the performance <br /> warranty and violation of the NOI. <br /> 12. On July 26, 2017, the Board considered the revocation of the NOI and <br /> whether the financial warranty should be subject to forfeiture. The Board found that <br /> Prospector failed to pay the annual fee or submit the annual report and map by the <br /> anniversary date. The Board found Prospector in violation of sections 34-32-116(4) <br /> and -127(2), C.R.S. and the NOI. The Board ordered Prospector to cease and desist <br /> prospecting activities at the site; required Prospector to, within ten days, submit the <br /> annual report and map, and pay the annual fee; ordered the NOI revoked; found the <br /> financial warranty to be subject to forfeiture; and directed the Division to schedule <br /> this matter for a hearing to consider forfeiture of the financial warranty for the NOI. <br /> The Board issued a written order, effective August 24, 2017 ("August 2017 Order"). <br /> 13. Prospector failed to submit the annual report and map, and pay the <br /> annual fee within ten days or at any time since, in violation of the August 2017 <br /> Order. <br /> 14. On August 24, 2017, the Division sent a Notice of Formal Board <br /> Hearing for Forfeiture of Financial Warranty letter to Prospector. <br /> Gold Hill Minerals, Inc. <br /> P-2012-006/Bueno Mining Mill <br /> PV-2017-009 2 <br />