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ML• Carl Mount <br />January 20, 1999 <br />Page 2 of 2 <br />the confidential Agapito Associates, Inc. January 7, 1999, correspondence to <br />Steigers Corporation. <br />American Soda has been conducting prospecting activities on its Yankee Gulch Leases since <br />December 1996 under Authorizations to Proceed (CDMG Files P-96-034 and P-97-003) for two <br />Notices of Intent to Conduct Prospecting Operations (NOIs). <br />On December 18, 1998, staff from Steigers Corporation met with staff from the Colorado <br />Division of Minerals and Geology (CDMG) to discuss American Soda's permitting <br />requirements. During the meeting, Steigers Corporation staff described the uniqueness of the <br />Yankee Gulch Project and how it differs from most standard mining operations. The <br />information requirements discussed in the meeting are provided in the Exhibits. <br />It is also important to note that the Yankee Gulch Project is not a Designated Mining <br />Operation. During the December 18, 1998, meeting, CDMG staff recommended providing <br />information explaining why the Yankee Gulch Project is not a Designated Mining Operation in <br />the Permit Application. Therefore, this information is provided in Exhibit T. <br />We expect that the bonding for the commercial mining operation will be conducted in the <br />same manner as for the NOIs that were bonded in the experimental test phase, with the <br />Bureau of Land Management (BLM) holding the primary bond and CDMG holding a token <br />bond. <br />American Soda intends to begin construction of the commercial mine in May 2000. If you have <br />any questions or comments regarding this Permit Application, please contact Ha] Copeland of <br />Steigers Corporation at (303) 799-3633 or me at (970) 928-9866. <br />Please direct future correspondence regarding this Permit Application to: <br />Mr. Kurt R. Nielsen, General Manager <br />American Soda, L.L.P. <br />c/o Steigers Corporation <br />6551 S. Revere Parkway Suite 250 <br />Englewood, CO 80111-6411 <br />Sincerely, <br />~t^GG'C~ , <br />Kurt R. Nielsen <br />General Manager <br />Enclosures <br />cc: Hal Copeland, Steigers Corporation 1/1 <br />John Mehlhoff, BLM 1/1 <br />KRN/TD/dwm <br />134186 <br />