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STATE OF COLORADO <br />.~ <br />I~"~ <br />I~L7 <br />OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />January 22, 2007 <br />Larry Perino <br />Sunnyside Gold Corporation <br />P.O. Box 177 <br />Silverton, CO 81433 <br />ce~~~;~~~~. <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br /> MINING <br /> <br /> SA ETY <br />[. <br />RF~' <br />J <br />Cj~.~ <br />q <br />/ t Bill Owens <br />vernor <br />G <br />~ <br />~ <br />V o <br />/S/O/j ° ~~D <br />~j OI t Ol Russell George <br />Ezecu[ive Director <br />~jn ~e~, <br />9 <br />aQp'S°/)/~t~ <br />~ Ronald W. Cottony <br />afe~ <br />~ Division Director <br /> Natural Resource Trustee <br />1/~ <br />RE: Approval of Sur~Reduction Request No. 05_(SR-05) <br />Sunnyside Mine, Permit No. M-1977-378./ <br />Dear Mr. Perino: <br />On January 19, 2007, the Division of Reclamation, Mining, and Safety approved a reduction in <br />the amount of financial warranty required for the Sunnyside Mine (SR-05). During the review <br />period of SR-05, the Division could not inspect the referenced lands due to snow cover. <br />Therefore, the approval decision was based upon observations made during the October 2, 2006 <br />inspection and December 5, 2006 recfamation cost estimation. The existing $146,151 financial <br />warranty may be reduced to not less than 60 534, representing an $85,617 reduction in the <br />amount of financial warranty required by the Division. The cost summary form of the Division's <br />December 5th reclamation cost estimation is enclosed. <br />Please note that during the October 2"d inspection the Division did not inspect the Mayflower <br />Tailings Pond 4. Therefore, the December 5th cost estimation does not address recent progress <br />in reclamation at Tailings Pond 4 and the Division has retained reclamation costs associated with <br />Tailings Pond 4. <br />Please contact me at the Division's Durango Office, 701 Camino del Rio, Room 125, Durango, <br />CO 81301, phone (970) 247-5469, if you have any questions. <br />Sincerely <br />Wallace H. Erickson <br />Environmental Protection Specialist <br />cc: Tony Waldron <br />Suzi Ericksen <br />Office of <br />Mined Land Reclamation <br />Office of <br />Active and Inactive Mines <br />