PERMFILE123027

• Permit No: M1982058
• IBM Index Class Name: Permit File
• Doc Date: 6/4/1981
• Doc Name: GOLD & ASSOCIATED MINERALS MINING LEASE 2989/16-S
• Media Type: D
• Archive: No

N' •
In the event that said Lessee does not extract Crom said premises said minimum amounts above specified during
each lease year of the term nC this lease, it is nevertheless understood that the above sums of money are royalties
for the years stated, and are due and payable to the Lessor whether rninerils are mined or not during such yeaz,
but that such minimum advance royalty will be credited upon the first royalties due as hereinafter provided for
minerals aetuill~produeed form said premises and sold or milled during the yen (or which such minimum royilty
wu paid.
2. Production RovaltY -Lessor hereby reserves and Lessee agrees to pay to Lessor u royilty the following:
(a•1) otabLOaxaaats~ see attached schedule.
(a•?) For non•fissionable tn:terials - 7G~tX
7t70f1O4c~
(b) ~Ottaeaaet
Within sixty days prior to the tetxninatton of each and every the-year period Cor so long u this
ease remains in effect, the State Board oC Land Commissioner ma reappraise the property herein
leued and fix and determine the me of production royilty to be paid doting each year of the succeeding
tive•year period. Failure to comply with any new royalty rate set by the Board tray subject this lean to
cancellapon by thinyday wrinen nonce by the Board.
If requested by Lessor, lessee is to furnish Proof of price received for all minerals sold. Such royalty is due and
payable on or before the tweary•Cifth (25th) day of each cilendu month during the term of this lease for tnineraLt
mined, removed, and sold by Lessee during the preceding cilendu month.
Royilry paymentt shall apply to payment received by the Lessee on any miner! so sold. The minerals mined
from the leased prtmises ma;y be milled in a custom or commercial plant or mill owned and operated by Lessee.
They rtuy not be coined ar commingled with ores from other propetties until they have been crushed and sampled
by the mill for the purpose of determining the hereinabove desr~taced minerals and other minerals contained m
the crude ore tlut may be salnaed by milling of same. The resulting samples are to be assayed a[ the laboratory
used by the mill where ore is trolled and Lessor ma demand an assay certtfiute showing the contenu oC each
delivery to mill. !f re uesteti by the Lessor, the trill is to reserve a pulp of each compostte sample for testing,
provided, however, said mill will not be obliged to keep pulp for a period of more than ninety (90) days. In the
event of a dispute u to analysis, the pulp prcpazed from each composite sample it to be referred to an umpire
acceptable to Lessor and Lessee and the deternuna[ioa of the umpire will be binding upon both panics. The net
weight of the crude ort on adry-weight basis will be determined a[ the scales at the mill. Lessor will have the right
to check the weights u often u it deems advisable. Lessee will famish Lessor with duplicate scale weight
cettificates. Ltssee agrees to, and will be held accountable to see that the foregoing provisions uc carried out by
such mill or mills u receive m,irtenls produced from the premises herein demised.
The Lessee his the right to mine, raise, n and transport ores from the lands hereby leued through other lands
now or hereafter owned or leased by the Lessee, and the right to raise, carry, and transport ores atttted by the
Lessee from other lands owned or leased by the Lessee oyer or through the lands covered by this lease; provided,
That the ores mined from o[lter lands ue in no even[ mined with ore ttuned from these leased premises, except u~
provided above.
3. Overriding Rovilry Limitations - It is agreed that this leue or any subsequent assignment hereof may not be
burdened with overriding royilties the aggregate of which exceeds 2;L Lessor must be no[Sed
of all overriding royilties accruing to this leue. Violation of the above may subject this leue to ancellation by
Lessor.
4. Wei is - It n agreed that .all minerals rained and taken from said premises ue to be weighed and the weight
t ereot is to be entered in due form in weight records kept for such purposes by Lessee.
5. RRevorts -After operations are begt[n. it is agreed ttut on or before the 25th day of each and every month during
the term of this leue the Lessee will make a sworn report on forms Famished by Lessor, in wluch the exact
amount in weight of all tnirte:rals trained and removed from said premises and sold during the preceding calendar
month are to be entered anti accompanied by full payment for all royilty due Cor the month. Further, Lessee
must furnish annually a map ar blueprint of survey oC all workings, with loation of same tied to a comer
established by United States surveys of some land subdivision, certified to by s licensed engineer or surveyor.
6. Ins coon - It is agreed that during all proper hours wad at all times during the continuance of this leue the
ssor or iu duly authorized agent or agents, u authorized to check soles u [o their accuracy, to go through any
oC the slopes, entnes, snafu, openings, or workings on said premises, and to examine, inspect, survey and take
meuurements of the same and to examine and make extneu of copies of aB books and weigh[ sheen and records
which show in any way the mineral output of the leued premises, and clot all comveniences necessary for said
inspection, survey, or examination are to be Curttis}ted to the Lessor.
7. Minis Methods -Failure to comply with anv oC the provisions of this panaraph may subject this leue io
carte aeon. ,
!n the underground and open pit workings, all st[afu, inclines, and tunnels must be we!) timbered (when good
mining requires timbering) and all pans of workings, where minerals uaaot exhaus[ed, will be kept free Crom
water and wute materials. The underground and open pit workings are to be protected against fire, floods, creeps,
and squeezes. !f such evenss do occur, they must be checked in a manner which is it[ keeping with good methods
of mining. Such methods of mining must be used u will insure the ex[nction of the gratesr possible amounts of
minerals consistent with prertiling good mining practice.
Cerise agrees to sloe the sides oC all surface pin or excavations to a ratio of not more than one Coot (I') vertical
for each two feet ( ) of hodzonul distance. Such sloping is to become a normil part of the operation. Whenever
practirable, all pi[s or excavations are to be shaped to drain, and in no case may the pits or ezavatiom be
allowed to become a hazard to persons or livestock. All material alined and not removed from the premises will
be used to fill the pin so thxt at the ex nation, surrender, or temtina[ion of this lease the land will, u nearly as
practicable, approxtmate its original contPgura[ion, with a minimum of permanent damage to the surface:
li on re nest Crom the Boazt! Lessee further auees to submi[ tans and ma s of ro osed minis ro ms in
a vance, sot at the oar may e t v aware or t e oronosea operanons.
8. Ri¢htsofwav - It is agreed that the Lessor reserves the right to gran[ righuoC•way over said premises for oublic
roads, railroads, power, tclegrapit, telephone, ditch, and canal lines, but such grams are to be subject to the righu
of the Lessee.
9. Notices - It u agreed that uty notice requned or permitted to be given to [.'te Lessee undo the provisions ai this
ease u to be sent by certited mail to the address sec forth at Ne beginning of this leue or to such other address
as Lessee may indicate in writing to Lessor and such service by mail will be deemed sufC~cien[ and in Cull came
plicence with the terms oI this Inse. Notice to Lessor is to be given in lilce manner, addressed to State Board of
Land Commissioners, Denver, Colorado.
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