2006-02-15_REVISION - M1983141 ‎(2)‎

• Permit No: M1983141
• IBM Index Class Name: Revision
• Doc Date: 2/15/2006
• Doc Name: Construction Costs for Hydraulic Bulkheads in Underground Mines
• From: DMG
• To: Mining and Environmental Services
• Type & Sequence: AM2
• Media Type: D
• Archive: No

STATE { ~airiirirt~irrrrr'r;
OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1317 Shaman Sl., Roan 21 S `

Denver, Cobrado 80203 ~
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Phone: [phone]
FAX:[phone]

POSt-IP Pax Note 7671 Date

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A v r r, o (
orQ s DEPARTMFNf OF
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August 9, 1996 ~~
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Mr. Larry Perino Fax g 70 ` -. (~? /Q Fen •
7 7 R('~mmiar

Sunnyside Gold Corp. i pores 5. Lochhead
Executive o+rKta
P.O. Box 177
Michael B, long
Silverton, CO 61433 Division Directs
RBt Finanoial Warrantp for BulkheaQ Replacement, 8unnpaide
I[ine, Technical Revision TR-014, Permit No. K-77-378
Dear Mr. Perino:
In order to satisfy Commitment #3 to the approval of Technical Revision
TR-014, 3unnyside Gold Corporation (SGC) has provided a Letter of Credit
in the amount of $500,000.00. This dollar amount was determined based on
the SGC estimate of discounted direct costs plus $115,000.00 to cover
indirect costs as detailed in your letter and attachments dated July 1,
1996. It is the Division's position that most of the discounts detailed
in your letter would not be realized in the event that the Division had
to replace the bulkheads under a bond forfeiture (see memorandum prepared
by Tom Gillis dated July li, 1996). The one discount item that would
obviously be realized is that a direct cost for a hoistman would not be
necessary. In addition, it is the Division's position that daily expenses
for project labor should be included in the estimate, and as such, your
direct cost for meals during the bulkhead concrete pours can be
discounted. Also, the Division believes that detailed indirect costa need
to be broken-out as a refinement to the SGC estimate. Based on the
foregoing discussion, the Division's estimate of direct and indirect costs
for bulkhead replacement are presented here:
Direct Costs: $550,601.00 from SGC estimate
(10,800.00) hoistman
(902.00) meals during pour
40.560.00 $65 per diem for 624 laborer-days
Total Direct: $579,459.00
Indirect Costs: $8982.00 Public Liability Insurance.. 1.55$ dir.
5650.00 Performance Bond.. ......... .975$ dir.
57,946.00 Contractor's Profit......... 10.08 dir.
11,589.00 Contractor's Contingency.... 2.08 dir.
Total Indirect: $84,167.00
TOTAL CONSTRUCTION CONTRACT AMOUNT (direct plus overhead, profit, and
contingency): $663,626.00