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~. <br />.n <br />RECEIVED <br />San Juan Corp. <br />P .O. Drawer I <br />611 Water St. <br />Silver Plume, CO 80476 <br />Tel.(303)i69-0155 <br />Fax (303)569-0156 <br />Colorado Mined Land Reclamation Board <br />Division of Minerals and Geology <br />1313 Sherman Street <br />Denver, CO 80203 <br />May 16, 2003 <br />MAY 19 2003 <br />Division ~f Minerals and Geology <br />Re: Proposed Amendment [o Mined Land Reclamation Permit M-77-378 American Tunnel <br />Gentlemen: <br />In response to notification of a proposed amendment to Permit M-77-378 American Tunnel from <br />final use of rangeland to industrial, we wish to point out the following: <br />1. We are contractually due to receive title [o the Herbert Placer, Gladstone Millsite and Bridge <br />mlllsite from Sunnyside Gold Corp in short order. At that time, our lease of a portion of the <br />Herbert Placer to Gold King Mines Corp. (as recorded in the Records of San Juan County, <br />Reception No. 142219, dated Nov. 19, 2002) will become effective. The quonset but and the water <br />treatment settling ponds are located on the Herbert Placer. <br />2. The continued use of the water treatment plant and water treatment plant settling ponds by Gold <br />King Mines Cory.is tq be for mining purposes, specifically for treating the water from the Gold <br />King Mine and the building areas will be used as a mining equipment repair/base area. Our lease of <br />that portion of the Herbert Placer to Gold King Mines Corp. is a 25 year period only and is <br />specifically for mine water treatment operations and storage/maintenance of equipment related to <br />Gold King Mines Corp.'s Cement Creek operations. <br />3. The proposed operator of the water treatment plant and/or owner of the Gold King mine <br />property may lack the financial capacity to insure the removal of precipitates offthe Herbert <br />Placer property, reclaim the settling ponds, and reclaim the other permitted areas over the long <br />term. WE OBJECT TO ANY PROPOSED CHANGE THAT WOULD REDUCE OR REMOVE <br />BONDING REQUIREMENTS ON THE SUBJECT PROPERTY, OR LEAVE BONDING AT <br />SUCH A LEVEL AS TO BE INSUFFICIENT TO RECLAIM THE MINING OR MINING <br />RELATED ACTIVITIES ON THE ENTIRETY OF THE SUBJECT PROPERTIES. We are also <br />concerned with potential petroleum product leakage or potential hazardous substance spills should <br />the area continue to be used (as planned) as a base for mining operations. <br />4. We do not object [o [he buildings remaining on the subject properties, and in fact deem this <br />advisable if the Herbert Placer is otherwise reclaimed at the end of activities as now required. <br />