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e ~ ~ ~~ X98 ~ a~g 18d02DosYicosl'arklfd. ~~/I ~~~ R~a moua, C,tl 95065 (/ Tei. 7G0-787-5[21 P'tts. lGO-?87-5724 toll free= S(i6-329-85G0 om:~il~ mountainmrblC~~ol.rom RE~ElVEC7 P ~ R 7ntl6 Erica Crosby State of Colorado Dept. of Minerals and Geology 1313 Sherman Street, Room 215 Denver, CO 80203 RE: ssues related to Reclamation at the Lily Mines Division of Reclamation, September 19, 2006 ~ Mining and Safety Erica: I wanted to let you know we have begun reclamation work at the Lily Mine this week. We will be addressing the immediate concerns regarding the 1 12 permit now under consideration. The reclamation work we are planning is as follows: • Backfill the un-permitted road on US Lime property. • Grade in new road to upper mine workings. Necessary to apply rip-rap to Taylor Gulch. • Channel Taylor Gulch with additional rip-rap to insure separation between disturbed area and the gulch. • Re-work grade on lower mine pad to ensure drainage runs into the mine pit. • Re-work the silt fence previously installed to eliminate DMG concerns regarding previous failure. In addition we will be hauling stock piled rock from the pit area within the original 110 Permit (mined in previous years) down to the lower pad, adjacent to Highway 50 (disturbed area included in the mine plan). The stocked piled rock is in the way of the waste rock we intend to use for rip-rap and backfill. It makes the most economic sense to move the stocked piled rock one time to the lower pad. I need an immediate response of your interpretation regarding movement of stone from a permitted area to another permitted area the contractor is waiting for direction from me on this. Erica, let me assure you we in no way want to run afoul of the permitting process at this stage of the game. We are not intending to do any mining this year. We simply want a headstart on the reclamation for next year and give you an opportunity to inspect the work we are doing. I will be in Salida on September 27th & 28th and invite you to meet meat the mine to inspect our reclamation work.