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<br /> <br />STATE OF COLORADO <br />DIVISION OE MINERALS AND GEOLOGY <br />Department of NaWral Resources <br />1313 Sherman SL, Room 215 <br />Denve*, ColoraAu 80203 <br />Phone: (3031 866-3567 <br />FAR: (3031 H32-13106 <br />March 3 ], 1998 <br />Mr. Don Coram, President <br />Gold Eagle Mining, Inc. <br />P.O. Box 3007 <br />Montrose, CO 81402 <br />RE: C-JD-S Mine. DMG Reclamation Permit No M-77-248 <br />Dear Mr. Coram: <br />~~~ <br />DEPAFZTMENT OF <br />NATURAL <br />RESOURCES <br />Roy Romer <br />Cuvemor <br />dames S. Luchhnul <br />ExeaiGve Director <br />Mlchae~ 8. Luny <br />Division Director <br />As you know, the DMG Enforcement Action for the C-JD-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withdrawn from consideration by the Mined Land Reclamation Board after the permit was 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 $100.00 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 not 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-comRliance 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~he Drovision referenced <br />in the Rule (co~v 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 GJD-5 Mine Permit (copy attached). <br />~~I <br />