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<br />~~ <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />.Department of Natural Resources <br />7373 Sherman St., Room 275 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303)83?-8106 <br />March 31, 1998 <br />Mr. Don Coram, President <br />Gold Eagle Mining, Inc. J <br />P.O. Box 3007 <br />Montrose, CO 81402 <br />RECEIVED <br />APR 0 6 1998 <br />Division of Minerals & Geology . <br />DERIyER OFFICE ~' <br />PUBLIAC~ F^ILE COPY ~~~~~ <br />FILE: /'"!- /~_~ L1 Q /DEPARTMENT OF <br />SdTE: _ Tp S NATURAL <br />InsPec f,.,,, a~n ok RESOURCES <br />~mt% Ro Romer <br />~~ ~P/1/ Governor <br />lames 5. Lochhead <br />Executive Director <br />Michael B. Long <br />Division Director <br />RE: C-JD-S Mine. DMG Reclamation Permit No M-77-248 <br />Dear Mr. Coram: <br />As you know, the DMG Enforcement Action for the C-ID-S Mine, No. M-77-248, was <br />withdrawn from consideration by the Mined Land Reclamation Board after the permit was <br />transferred from Blake Mining Co. to Gold Eagle Mining, Inc. As part of the permit transfer, the <br />DMG accepted a DOE bond in lieu of a DMG bond (except for the statutory $1DO.OO.minimum <br />DMG bond). However, one of the requirements set forth under Rule 4.2.1 (8) of the Hard Rock <br />Rules for acceptance by the DMG of bonds posted with federal land management agencies such <br />as the DOE, is that the approved permit application must contain a provision that in the <br />event the federal land management agency reduces the financial warranty, the operator <br />must post an acceptable replacement warranty with the DMG prior to any release by the <br />federal land management agency. Since the approved permit application for the C-JD-S Mine <br />does ~ contain such a provision, Gold Eagle Mining, Inc. will need to submit a Technical <br />Revision request ("TR") to the DMG to add this necessary provision to the approved permit. The <br />TR needs to be submitted as soon as possible in order to avoid anon-compliance enforcement <br />action from the DMG The TR submittal need only consist of a letter to the DMG referencing the <br />permit number- the reason for the TR request. and a statement containing the provision referenced <br />in the Rule (copy attached. <br />This requirement was previously identified by the DMG in a February 5, 1998 letter sent to all <br />parties having an interest in the C-JD-S Mine Permit (copy attached). <br />