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~~Q\Jed <br />pp3 <br />GOLD KING MINES CORPORATION / ~ ~' ~`~ <br />~;l':.. <br />SilvertonO, Colorado 81433 ~4~4~Geotonv <br />Oo~~t~M~^~`~ <br />~o <br />Telephone (970) 387-5813 Fax (970) 387-5760 ~~~~ <br />~~~~ ~~ <br />June 30, 2003 ' "~ ~~ <br />Colorado Division of Minerals and Geology/ <br />701 Camino Del Rio <br />Room 125 <br />Durango, Colorado 81301 <br />Attention: Mr. Wallace Erickson <br />s„~,.Ys~de M„~/ <br />M-(47y7-378/ <br />C6~1Se/1l ~eGYF2/ <br />M~~e Rew~ed~a{jO1~ptofe~f'SIs~. <br />Re: Initiation of Mogul Mine Level No. 1 Tunnel Bulkhead Work /(~~ cF'~VF® <br />3?~ <br />Qr~s~Oa°r <br />Dear Mr. Erickson: M„~Pra,Ja <br />n <br />This letter is to advise you that Gold King Mines Corporation has initiated work on installationa0~°ar <br />of the proposed bulkhead in the No. 1 Level of the Mogul Mine. This work is being carried out as part of <br />a contractual agreement between Sunnyside Gold Corporation and Gold King Mines Corporation and is a <br />key element of the final settlement of the Consent Decree between Sunnyside Gold and the State of <br />Colorado. <br />Work was commenced to re-open the Mogul mine No. 1 level portal on June 1 1, 2003. The <br />initial proposed site for the bulkhead will be inspected by John Abel, the bulkhead design engineer, to <br />determine the structural feasibility of the proposed location and, if acceptable, to gather data for design <br />of the bulkhead. <br />Prior to opening the portal, a sedimentation pond was constructed on the mine dump to contain <br />sediments generated during the cleaning of the tunnel. In addition, Gold King began treating a partial <br />flow from Cement Creek at the American Tunnel water treatment plant to mitigate effects from possible <br />increased levels of dissolved metals generated during the clean out of the Mogul mine tunnel. <br />If you have any questions, please contact me at the above telephone/fax numbers or by a-mail at <br />fearneng@rmi.net. <br />We look forward to working with the Division on this project. <br />Re pe full <br />eaiL>. <br />to en C. Fearn, P esident <br />cc. Larry Perino, Sunnyside Gold Corporation •~ ` ~, <br />Tod Hennis, San Juan Corp. - <br />