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STATE OF COLORADO <br /> MINED LAND RECLAMATION BOARD <br /> DEPARTMENT OF NATURAL RESOURCES <br /> IN THE MATTER OF: ) NOTICE OF VIOLATION M-86-094 <br /> Marathon Gold Corporation ) AND <br /> CEASE AND DESIST ORDER <br /> TO: Marathon Gold Corporation and all other persons engaged in or owning or <br /> controlling the following operation: Joker Mine and Pilot Plant <br /> FINDINGS OF FACT <br /> Pursuant to the authority vested in the State of Colorado Mined Land <br /> Reclamation Board by C.R.S. 34-32-124, the Board hereby makes the following <br /> findings of fact: <br /> 1 . Marathon Gold Corporation is permitted to conduct a mining operation under <br /> the terms of Permit No. M-83-052 located in Section(s) 9, Township 9N, Range <br /> 92W, in Moffat County, Colorado. <br /> 2. The Mined Land Reclamation Board conducted a Formal Public Hearing on <br /> November 20, 1986, to consider possible violation of the terms of Permit No. <br /> M-83-052 and C.R.S. 34-32-101 et seq. <br /> 3. The Mined Land Reclamation Division presented evidence at the Formal <br /> Public Hearing on November 20, 1986, demonstrating that: <br /> a. Notice of "Order of Liquidation" of Allied Fidelity Insurance Company <br /> was mailed to Marathon Gold Corporation on July 29, 1986, advising <br /> them of their need to provide new financial warranty. <br /> b. Notice of reason to believe a violation exists and notice of formal <br /> public hearing for consideration of possible Notice of Violation, <br /> Cease and Desist, Civil Penalties, Revocation of Permit and Forfeiture <br /> of Financial Warranty was mailed to Marathon Gold Corporation on <br /> October 28, 1986. <br /> c. To date, replacement Financial Warranty in the amount of $45,000.00 <br /> has not been provided as required by 34-32-117(6). <br /> NOTICE OF VIOLATION <br /> Based upon these same Findings of Fact and in accordance with <br /> C.R.S. 34-32-124(6), the Colorado Mined Land Reclamation Board hereby finds <br /> Marathon Gold Corporation to be in violation of Permit No. M-83-052 and C.R.S. <br /> 34-32-117(6). <br />