2003-09-22_REVISION - M1977378 (2)

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R~~~+~ed GOLD KING MINES CORPORATION ~ SFi~ 2 ~' rGp3 P.O. Box 299 ~3ura;T9o F Silverton, Colorado 81433 ~Msionofryr;nE~~s$G olagy Telephone (970) 387-5813 Fax (970) 387-5760 September 19, 2003r~~ o~; O~c. Q~~, Colorado Division of Minerals and Geology 701 Camino Del Rio Room 125 Durango, Colorado 81301 3j07 C t: nl // ~J. o,., °c 6~ `b; Attention: Mr. Wallace Erickson ,~ ~ Re: MLRB Permit M-1977-378 Amendment No. 5 Operation of Water Treatment Plant and Reclamation of 5.67 acres of the Herbert Placer ' Dear Mr. Erickson: Gold King Mines Corporation supports the application by Sunnyside Gold Corporation to change the post mining land use of approximately ten acres of land from rangeland to industrial. Approximately one-half of this area is located on land owned by Gold King and approximately one-half of the area is located on land leased to Gold King fora 25 yeaz period by San Juan Corp. for the primary purpose of operation of four settling ponds that are an integral part of the American Tunnel Water Treatment Facility operated by Gold King under CDPS Permit No. CO- 0027529. These ponds were in place and in use at the time of acquisition of the Herbert Placer by San Juan Corp. Under terms of the Lease Agreement, Gold King is obligated, at the end of the lease period (or sooner if Gold King opts for an early termination of the Lease), to reclaim the ponds in accordance with the terms of the Sunnyside MLRB Permit No. M-1977-378 in effect at the effective date of the Lease Agreement. Gold King expects to fulfill this obligation in a timely manner as provided for in the Lease Agreement. During the operational period, under the CDPS Permit, Gold King is obligated, as an on-going operational requirement, to periodically clean the ponds of the accumulated lime-based sludge and dispose of it at a permitted facility. Gold King does not believe any significant purpose will be served by keeping the settling ponds in the MLRB permit program since Gold King is already obligated to reclaim the ponds under the existing lease, and the actual reclamation work required under the existing permit/lease is minimal.