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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 8643567 <br />FAx: (303) 832-8106 <br />July 30, 2007 <br />Ron Thompson <br />Basin Resources, Inc. <br />Go Peak Project Management <br />34115 County Road 20.8 <br />Trinidad CO 81082 <br />RE: 2008 ARR Review, Golden Eagle Mine, #C-81-013 <br />Dear Mr. Thompson: <br />COLORADO <br />D t V 15 t O N O F <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cottony <br />Division Director <br />Natural Resource Trustee <br />The Division has completed review of the 2006 Annual Reclamation Report for the Golden Eagle mine. <br />Surety Release No. 5 (SL-05) was approved in January 2006 and released 1.15 acres at the two Apache <br />Canyon ventilation sites. This bond release was a Phase I, II, and III release under apost-mining use of <br />Industrial. However, these acres are not reflected on the 2006 ARR reporting form. Please add 1.15 <br />acres to each of the three categories of acres bond released and re-submit the 2006 ARR form. <br />A review of the status of the remaining areas at this site is as follows. Approximately 66.17 acres were <br />disturbed over the life of mine. After the 2006 Apache Canyon bond release, 7.87 acres have achieved a <br />Phase I, II, and III bond release under an Industrial Land Use. This leaves 58.30 bonded acres remaining, <br />of which 51.40 acres have been Phase I and Phase II bond released but still need a Phase III bond <br />release. 5.7 additional acres need a Phase I, II, and III bond release, and are comprised of the reclaimed <br />areas of pond 3 and pond 4 and a small area near the railroad track. The remaining 1.2 acres at the NW- <br />1 vent shaft needs a Phase II and Phase III bond release. <br />Golden Eagle Bond Release Status <br />Achieved Achieved Achieved <br />Description Acres Phase I Phase II Phase III <br />Main Facility 51.4 51.4 51.4 0 <br />Ponds 3 and 4 5.6 0 0 0 <br />RR track 0.1 0 0 0 <br />NW-1 vent 1.2 1.2 0 0 <br />Apache shafts 1.15 1.15 1.15 1.15 <br />Roads and pads 6.72 6.72 6.72 6.72 <br />Totals 66.17 60.47 59.27 7.87 <br />Thank you for completing your reclamation reporting in a timely manner. We have no further questions at <br />this time. <br />Sincer ly, <br />•'~~~`~ <br />Kent orham <br />Environmental Protection Specialist II <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction Durango Active and Inactive Mines <br />