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/ C!r Corporation's JD-9 Mine, M-7.06 <br />Page 2 -September 28, 1999 <br />Task #3 Slope reduction for waste rock stockpile. <br />DMG's cost estimate is $5,557. <br />Cotter's cost estimate is based on a waste rock stockpile size of 13,333 Icy. Of the total, 10,000 <br />Icy would be pushed downhill with a production rate of 357 lcy/hr; and would take 28 hours. The <br />remaining 3,333 lcy. of waste rock would be pushed uphill and away from the drainage, using a <br />production rate of 325 Icy/hr., it would take 10 hours. The total project would take 38 hours of <br />dozer time at $100/hr. ($3,800). <br />Task #4 Grade pond, vents and shop areas and roads. <br />DMG's cost estimate is $2,594, based upon an estimated 3 acres to be graded. <br />Once the waste rock stock pile is contoured, the dump area will be graded on the final pass. <br />Therefore; the total acreage requiring grading will be 2.25 acres instead of 3. Cotter has <br />subtracted the difference from the total cost of task no. 4. <br />Task #5 Replace topsoil (waste rock fines) <br />The waste rock fines will be spread during the re-contouring efforts, as there is no segregation <br />between the fines and the waste rock material. <br />Task #6 Re-vegetate 5.52 acres. <br />Cotter agrees with this cost. <br />Task #7 Mobilization and Demobilization <br />DMG's cost estimate of $1,547. Cotter has deducted $800 from this estimate, as local <br />contractors do not charge hourly rental rates for their equipment while in transit. <br />Task #8 Foreman Costs <br />Cotter agrees with DMG's cost estimate of $1,993. <br />Ifyou have any questions, please call me at 970-864-7347. <br />Sincerely, <br />COTTER CORPORATION <br />a.~-Q <br />Dave iss <br />Environmental Tech II <br />DD/tlt <br />dmgduA.dd <br />cc: Dave Munger <br />