2020-12-09_REVISION - M1977300 - Laserfiche WebLink

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Colorado Legacy Land Supporting Information for 2020 Bond Reduction Schwartzwalder Mine Colorado Legacy Land, LLC (CLL) is the current owner and operator of the Schwartzwalder Mine located in Jefferson County, Colorado. The operations are being performed under Permit No. M-1977-300 issued by the Colorado Division of Reclamation,Mining and Safety(DRMS). The current bond amount required under the permit is $8,900,000. Attachment 1 provides the bond calculation used to support the bond amount. Since March of 2018 when CLL took over operations at the mine, a substantial amount of work has been completed in accordance with the permit terms. Table 1, below, provides a summary of the work scope completed and the associated bond amounts. The work totaled $1,283,646. Because this work has been completed, CLL is now requesting that the bond be reduced accordingly. Table 1 Completed Scope Value Initial In Situ Treatment $350,000 Demo and Debris Removal $246 400 Excavate, Haul and Place 75% $215,494 Concrete V-ditch Storm Water Drain $133,363 Waste Rock Pile Ca $88 389 "Denver Water Contingency" $250,000 Subtotal $1,283,646 Included in the bond calculations are DRMS Indirect Costs that are calculated as a percentage of direct costs, as shown in Attachment 1. When the completed scope is removed from the bond calculation it results in a further reduction of$243,207 in DRMS Indirect Costs. Consequently, CLL is requesting that a total of$1,526,853 be released from the current Schwartzwalder bond (Table 2). Table 2 Bond Reduction Reduction Completed Scope $1,283,646 DRMS Indirect Costs $243 207 Total $1,526,853 With these released bond amounts, the current Schwartzwalder Mine bond will now total $7,373,147. Attachment 2 is the revised 2020 bond calculation worksheet. The following sections provide more detail on the completed work scope presented in Table 1, above.