GENERAL44442

• Permit No: M1978091UG
• IBM Index Class Name: General Documents
• Doc Date: 11/28/1986
• Doc Name: GOLDEN WONDER MINE FN M-78-091 UTE MINE FN M-78-092
• From: MLRD
• To: LAKE CITY MINES
• Media Type: D
• Archive: No

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Richard D. Lamm
Governor
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DEPARTMENT OF NATURAL RESOURCES
Davitl H. Gelches, Executive Director
MINED LAND RECLAMATION DI\
DAVID C. SHELTO N, Director
November 28, 1986
Lake City Mines
C/0 Mr, Kye Abraham
L.K,A. Minerals
18000 Pacific Highway South
Suite 808
Seattle, Washington 98188
Re: Golden Wonder Mine - File No, M-1A-091 `~
Ute Mine - File No. M-78-092
Dear Mr. Abraham:
On November 17, 1986, our Division received the annual fee payments for the
two operations captioned above which brought both of them up to date on the
annual fees ($100.00 for the Golden Wonder F1ine and $50,00 for the Ute Mine).
We also received the required accompanying annual reports. I appreciate your
attention to this problem.
On November 26, 1986, I called the number you provided and talked to one of
your staff members. He gave me the proper address to contact your company and
verified that you should be considered our contact for these two Lake City
Mines permits. A review of your annual reports and my conversation with your
office leads me to outline two further problems with these mines which I will
discuss below.
First, at some point it will be necessary to formally transfer these two
permits to L.K.A. Minerals if your company, rather than Lake City Mines,
continues to be the corporate entity responsible for these two mining
operations. This transfer would entail submittal (in the name of
L.K.A. Minerals) of a Succession of Operators form for each mine, a limited
impact application form to give us administrative information for each mine
(form only - no new exhibits required), a Performance Warranty for each mine
(a written promise to do reclamation), and the appropriate Financial Warranty
for each mine ($950,00 for the Golden Wonder Mine and $1,850.00 for the Ute
Mine). I have enclosed a copy of each of the first three forms. When you
decide to do the permit transfers, please request forms for the type of
financial warranty you wish to use from us (typical options being a corporate
surety bond, and irrevocable letter of credit from a bank or a certificate of
deposit made out to "Colorado Mined Land Reclamation Board" with the interest
to go back to your company), and they will be sent to you. Please clarify
your future plans in this regard at your earliest convenience.
423 Centennial Building, 1313 Sherman Street Denver, Colorado 80203 Tel. [phone]
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