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<br />
<br />STANDARD METALS CORPORATION
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<br />51LYERTOH.COLORA00 81A33
<br />•~[[ con[ [o[
<br />387-5539
<br />RE: I•:XHIBIT 0
<br />Colorado Tfined Land Reclamation Board
<br />Application for Regular Permit, Rule 2, Section 2.12
<br />For Silverton-Standard ?fetals Pfining/Milling Operation
<br />Silverton, San Juan County, Colorado
<br />The following statement confirms that the afformentioned corporation
<br />(succeeding to all of the interests of Plarcy-Shenandoah Corporation) engaged
<br />in a mining/milling operation in San Juan County, has all legal rights to enter
<br />and execute mining and milling practices under the following named le.3ses:
<br />' 1) Gold King Easement: A perpetual tunnel easement described under
<br />the original agreement between San Juan Gold King Mines, Inc., and Aia:rcy-
<br />Shenandoah Corporation, August 20, 1958; a) to enter and use for maintaining
<br />the American Tunnel and extensions in exploring, developing and mining; the
<br />Sunnyside Properties. The rights of use of this Tunnel also includes rights
<br />of ingress and egress from the Sunnyside Properties and for transporteltion
<br />of men, tools, equipment, and supplies, track, pipes, and cables, air and waste,
<br />i and for drainage, ventilation, pipelines, power lines and any other use
<br />• necessary or convenient ir. such operations in the Sunnyside Properties;;
<br />b) on and over so muc}1 of the surface of eight (8) patented mining; c]aims o~m ed
<br />by San Juan Gold King `tines, Inc., at or rear the portal of said ,lmerjcan Tunnel,
<br />as map be necessary or convenient for: 1) ingress to or egress from said Tunnel;
<br />2) convenient handling and stockpiling of all ores and dumping of all. waste
<br />transportated through said tunnel, and for the full use and enjoyment of said
<br />tunnel, including sites for ore bins, compressor house, bunk house, boarding
<br />douse, mills and such other structures and facilities Standard Metals Corporation
<br />mar' de::ire to use in connection with its operation through said tunnel.
<br />The oortal entrance of the American Tunnel is located N55° 06'11"E
<br />11,110 feet from llSLM ?Moultrie and ?:84° 03'10"ti', 1,480 feet from 17SLti Florence,
<br />in protracted Section 17, T 42 N, P. 7 L.', 11MPP1.
<br />Other affected lands in the portal area (5 patented, 3 unpatented mineral
<br />' claims) are oMmed outright by Standard ?tetals Cornoration.
<br />The active portal area is considered a moderately disturbed area as
<br />defined by the Colorado Mined Land Board. It's general location 3s shown on
<br />• the Portal Area ^fap found in Lxhibit C/D.
<br />2) Brenneman Lease: An agreement made Oc[oher 17, 1963, between the
<br />Lessors (listed in Lease) and Standard Metals Corporation, fcr the purpose of
<br />exploration, investigation, deveionment, mining and for reroval, extraction
<br />and marketing of minerals and ores valuable therefor in accordance with
<br />terms and conditions of the mining lease, under which six (6) patented
<br />Lode *fining Claims situated in San Juan County, Colorado, are listed.
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