1999-11-23_REVISION - M1999002

• Permit No: M1999002
• IBM Index Class Name: Revision
• Doc Date: 11/23/1999
• Doc Name: TEST MINE BOND
• From: DMG
• To: STEIGERS CORP
• Type & Sequence: TR1
• Media Type: D
• Archive: No

III IIIIIIIIIIIII III
999
•
STATE OF COLORADO
DIVISION OF MINERALS AND GEOLOGY
Deparunenl of Nawral Resources
1313 Sherman SL, Room 215
Denver, Colorado 80203
Phone: x303) 866-3567
FAX: [phone]
SENT VIA FAX
DATE: November 23, 1999 ~'
TO: Hal Copeland, Steigers Corp.
FROM: Allen Sorenson ~~• ~V~/KE " ie5~ ~ ~ ~~ ~~~
RE: Reclamation Bond, American Soda, Yankee Gulch, Permit M-99-002
DIVISION OF
MINERALS
GEOLOGY
RECLAMATION
MINING•SAFETY
Bill Owens
Governor
GregE Watcher
Execmive Director
nlichael B. Long
D\~iaion Dueaor
In an effort to better reconcile the bond required by the State of Colorado and the BLM, the following
analysis is provided.
In a letter dated l 1/22/99, DMG stated that a $2,603.000.00 bond was acceptable if posted in nddrtion
to the $26,000.00 held by the State and the test mine bond held by the BLM. In order to release the test
mine bond currently held and terminate the test mine notices with the State, additional bond in the
amount of $400,445 must be posted. The derivation of the test mine bond amount is tabulated in the
attached spreadsheet. All line items in the spreadsheet are self-explanatory except the seeding cost and
the demolition cost which are derived below.
Demolition Cost for Test Mine Facilities
Demo test mine process building -superstructure $16,628
Demo test mine process building -slab w/ rods $13,048
Demo test mine boiler pad $2,605
Demo test mine cooling pond pump block $104
Test mine pond liner-cut and fold in $9,862
Concrete disposal $3,900
TOTAL $46,147
Reve¢etation of Test Mine Facility
13-acre total disturbed area. 80 percent to be seeded @ $1419/acre or $14,757.60. 20 percent to be
planted to shrubs @ 6396.07/acre or $16.629.78. Total for 13 acres is $31,387.38.
SUMMARY
The total bond to be posted to allow surface development up to the point of drilling additional solution
mining wells and release of test mine notices is $2,603,000.00 + $26,000.00 + $400,445 + amount of
BLM lease bond = $3,029,445. Since the State already holds the $26,000, the total amount to be posted
with BLM to allow termination of the test mine notices is $3,003,445 + amount of BLM lease bond.