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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 275 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />October 20, 2004 <br />Mr. Todd Hennis <br />San Juan Corpora <br />cc'- ,y~l~', w~F, NB~I <br />OLORADO <br />( V I S I O N O F <br />INSRALS <br />EOLOGY <br />:IAN ATION•MINING <br />SAFETY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cottony <br />Division Director <br />Natural Resource Trustee <br />611 Water St <br />Silver Pltune, CO 80476 <br />Re: Reclamation Issues response; Sunnyside Gold Corp., Sunnyside Mine; M-1977-378 <br />Deaz Mr. Hennis, <br />Thank you for your October 12, 20041etter regarding reclamation issues at the Herbert Placer <br />sedimentation ponds. The Division received your letter October 18. <br />You offered an explanation of the San Juan District Court's decision regarding Gold King's obligations to <br />San Juan Corp on the Herbert Placer lease. The Division has not yet seen the Court's final decision, so <br />we aze not aware of Gold King's precise obligations under that action. <br />You indicated that you do not want to give Gold King Mines Corp "carte blanche" for "reclamation of the <br />affected lands of the Herbert Placer." As you know, ponds on the Herbert Placer are under a Mined Land <br />Reclamation Boazd (NLRB) permit to Sunnyside Gold Corp; they aze not under an NLRB permit to Gold <br />King Mines Corporation. Although Gold King applied to the DMG to take over the American Tunnel <br />azea, that action is on hold, and the Division cannot approve the application as long as Gold King remains <br />under notice of violation at any of their other properties. <br />The Sunnyside permit from the NLRB carries an approved reclamation plan for the sediment ponds in the <br />Herbert placer area. Strnnyside's only obligations to the NLRB aze those identified in the approved <br />reclamation plan. The NLRB holds no permit from Gold King Mines Corp for reclamation on the <br />Herbert Placer, so Gold King has no reclamation obligation to the NLRB at the Herbert Placer. <br />In your letter you requested that I arrange a meeting involving DMG, San Juan Corp, Gold King, and <br />Sunnyside. The Division is available for a meeting with San Juan Corp, but before setting a time, we <br />would like to heaz your proposal for reclamation, if it differs from the approved reclamation plan. Once <br />we review your proposal, we will set up a meeting. Because the approved reclamation plan for the ponds <br />azea may differ from your stated desire for this azea, DMG will be glad to meet with you and Sunnyside <br />representatives regarding any specific proposal you may have to ensure consistency with the approved <br />reclamation plan; however, as far as DMG is concerned, Sunnyside's obligations for that area will be met <br />if Sunnyside follows the reclamation plan. DMG will not oppose any actions that Sunnyside <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Su <br />