PERMFILE69754

• Permit No: M1982020
• IBM Index Class Name: Permit File
• Doc Date: 8/18/1993
• Doc Name: FINANCIAL WARRANTY LUCKY STRIKE MINE FN M-82-020
• From: DMG
• To: LUCKY STRIKE MINE
• Media Type: D
• Archive: No

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.~ ie ~l ~, OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1 313 Sherman Sr, Room 21 S
Denver, CO 80203
Phone: [phone]
FA%: [phone]
August 18, 1993
Melvin R. Gydesen
Lucky Strike Mine
229 County Road 11
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Governor
Mi.hael R Lnng
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Gunnison, CO 81230
Re: Financial Warranty, Lucky Strike Mine, File No. M-82-020
Dear Mr. Gydesen:
The Division is in receipt of your letter dated July 7, 1993 which
included an estimation of reclamation costs for the Lucky Strike
Mine. As a result, the cost estimate sent to you with the May 5,
1993 inspection report has been re-evaluated. The Division agrees
that using a poured in place concrete cap to seal the shaft would
be less expensive than pre-cast concrete panels. An average cost
for poured in place concrete caps of $17.00 per square foot is
based on bids received by the Inactive Mines Program within the
Division of Minerals and Geology. This would result in a shaft
closure cost of $612.00 for the nominal 36 sq. ft. opening at the
Lucky Strike, a reduction of $1176.00 from the initial estimate.
Also, the Division is willing to reduce the indirect cost for
reclamation from 18 percent to 15.8 percent based on the relatively
easy access to the site and the straight forward reclamation plan.
This reduction, in combination with the lower cost for sealing the
shaft, results in indirect costs of $1655.58, a reduction of
$442.21 from the initial estimate.
You also submitted estimates for mobilization, earth-moving, and
re-vegetation that are markedly lower than those estimated by the
Division. The Divisions estimate is based on accepted cost
estimating techniques that reference the Cost Reference Guide,
Contractors Equipment Cost Guide, Colorado Contractors Association
Wage Rate Schedule, and the Caterpillar Performance Handbook. The
material volumes used to derive earth-moving costs for reclamation
of this site are based on information contained in the permit file,
and measurements and observations made during the inspection in
May. The revegetation cost of $500.00 per acre used in the
Division's estimate is the minimum re-vegetation cost that is used
for bonding purposes. The Division believes that the cost estimate
sent to you with the inspection report, with the exception of the
two items discussed above, is an accurate determination of the
reclamation costs for the Lucky Strike Mine.