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:.. <br />i RECE!~%FC, <br />~ ~ <br />BONES ~ HFiLLRR SEP ~ ]993 <br />ATTORNEYS AT LAW QIl9Q!pp U~ ~,71l1(;.'31S ~ hL' y <br />A PROFESSIONAL CORPORATION (. O(1V <br />1625 BROADWAY <br />SUITE 1600 <br />DENVER,COLO RADO 80202 <br />RODNEY D. NNUTSON TELEPHONE (303) 573-1600 <br />TELECOPIER (303)893-6506 <br />Direct Dial: (303) 825-6000 <br />August 30, 1993 <br />Ms. Gwen Fraser <br />President <br />Colino Oro Molina, Inc. <br />P. O. Box 80905 <br />Seattle, WA 98108 <br />Dear Ms. Fraser: <br />OIA FAS <br />(206) 937-8232 <br />During the last week we have received reports of several <br />separate independent sources disclosing that ore from the John Jay <br />Mine near Jamestown has been "imported". to the Gold Hill Mill and <br />processed through the mill. The owner or operator of.the mine <br />stated that he would be shipping ore to the mill for_an agreed <br />price per ton. An employee of the owner or operator of the John <br />Jay Mine has recently boasted of shipping six truck loads of ore to <br />the Gold Hill Mill. A resident of Jamestown witnessed trucks <br />loaded with ore coming down from the John Jay Mine and passing <br />through town. An individual living in Sunshine Canyon saw trucks <br />loaded with ore heading up the canyon towards the mill during the <br />early evening and at night. i have talked with Mark about these <br />reports and wanted to advise you of them. <br />A person who was in the mill told a local individual that at <br />least half of this ore was ending up in the tailings pond, and a <br />recent examination of the tailings pond revealed that the pond <br />contains mill tailings that are of a color and composition unlike <br />the tailings that would have resulted from processing any of the <br />ore previously stockpiled at the mill. In addition, the amount of <br />material removed from the stockpile could not possibly account for <br />the large volume of the new tailings that have recently been <br />discharged into the pond. <br />When Bob Mason asked your on-site mill superintendent about <br />the trucks coming up Sunshine Canyon, I understand that Mr. Tatman, <br />stated that "It was the last of the monzonite." Presumably, this <br />was a reference by your brother to the ore that you purchased from <br />Tom Hendricks that was completely removed and hauled by Keeter <br />Trucking to the mill over a year and a half ago. Bob Mason also <br />