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<br />James C. Stevens <br />October 25, 1991 <br />Page 2 <br /> <br />2. As we disussed the other day, we are in the process of <br />finalizing a lease/purchase agreement with Homestate, <br />Inc, on all of Energetics' properties at Jamestown. The <br />next phase of our plan is to file a Request for Transfer <br />of Mineral Application and Succession of Permit Appli- <br />cant from Energetics, Inc, to Homestate, Inc. <br />3. Concurrent with, or immediately following, the above <br />transfer of operations, Homestate intends to file a <br />technical revision to the existing Energetics, Inc. 112 <br />Permit 4M-80-128, to allow Homestate to fully develop <br />the Bueno Mine and to operate the Bueno Mill. As we <br />discussed the other day, the basics of the technical <br />revision would be to: <br />a. Reduce the permit area from 144 acres down to <br />approximately 13 acres. See attached maps A-1 <br />and A-2. <br />b. Incorporate MLRD suggestions relative to exist- <br />ing dumps and tailings pond stabilization into <br />our mining, milling and reclamation plans. <br />These suggestions were presented to Van Dyke <br />Minerals, Ltd. and Energetics by David Hernan- <br />dez and others at the time Van Dyke was oper- <br />ating the property. <br />c. Update the reclamation plan and recalculation <br />of the financed warranty requirements. <br />The actual mine and mill operations proposed under the <br />existing permit are not expected to change under the <br />technical revision, and surface disturbance is expected <br />to remain the same. It is not anticipated that any <br />additional adits will be required and that only the <br />existing 350, 450 and Big Boar adits will be rehabili- <br />tated and used for access and production. <br />With the assistance of Silvia and Wayne, i will be providing you <br />the above described materials over the next several weeks. Please <br />feel free to give any of us a call at the following numbers if you <br />have any questions or need additional information. <br />Silvia Pettum 443-0714 <br />Wayne Tatman 449-7746 <br />A. J. Seastone 220-9588 <br />