2003-11-10_REVISION - M1978056 (8)

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Exhibit L -Reclamation Costs N0~ ~ ~ ~ Summary of Reclamation Costs: $ 25,071.60± Total Site Preparation Prior to Re-soiling. o~~~s~°°o+m+°e~eiga°acemoar $ 32,199.38± Total Re-soiling $ 12,581.46± Total Re-vegetation $ 69,852.44± Sub-Total $ 4,000.00± Mobilization and Demobilization Costs (8 pieces of equipment) $ 73,852.44± Sub-Total $ 2,594.23± Dispose of inert fill (see Other Costs, above) $ 76,446.67± Sub-Total $ 13,836.85± DMG Indirect Costs @ l 8.1 % of Total Reclamation Costs $ 90,283.52± Grand Total -Financial Warranty Amount SUMMARY OVERVIEW: Shortly before the succession of this operation of 21 October 1999, the permit area attained maximum disturbance and correlated reclamation liability. Since that time, activities by Varra Companies, Inc., are reducing reclamation liability, and will continue to incrementally decrease the remaining reclamation liability over the remaining life of the mine; presently estimated at 35.0± years. This is evidenced by several factors: the successful coverage of exposed ground water with a Substitute Supply Plan; • reducing the attending costs of revegetating lands above final water line through the creation of additional basin area by the on-going extraction of affected lands; and, • the acceleration of reclamation by the grading to 3H:1 V, and correlated re- coiling of 25.0± acres of pit wall (refer to Exhibit C -Pre-Mine and Mining Plan Map). While the former permit indicated the operation would be mined wet, it is evident that the operation has always been mined dry, since the on-set of operations in October 1984. Discharge of exposed groundwater is permitted for seven possible points of discharge, as approved under a State of Colorado stormwater discharge permit (COG-500100). The locations of the discharge points are indicated on the Exhibit C -Pre-Mine and Mining Plan Map. Varra Companies, Inc. DMG Permit M78-056 2003 Amendment