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STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Rewurces <br />7373 Sherman 6t., Room 275 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />May 31, 2005 <br />Ron Thompson <br />Basin Resources, Inc. <br />c/o Peak Project Management <br />34115 County Road 20.8 <br />Trinidad CO 81082 <br />RE: 2004 ARR Review, Golden Eagle Mine, #C-81-013 <br />Dear Mr. Thompson: <br />COLORADO <br />D 1 V I S I O N O F <br />MIN sRALS <br />GEOLOGY <br />0.ECLA MATION•MINING <br />SAGETT•SCIENCE <br />aiu oven: <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division has completed review of the 2004 Annual Reclamation Report for the Golden Eagle <br />mine. <br />The Division notes the reporting of the completion of reclamation at the NW-1 bleeder fan site. <br />The mine reports no acreage in active mining areas or in reclamation facilities, thus the value for <br />facilities subject to reclamation but yet to be completed is also reported as zero. The status <br />regarding bond release of reclaimed acreage at the mine is as follows: <br />Approximately 66.17 acres were disturbed over the life of mine at this site. 6.72 acres have <br />achieved a Phase 1, II, and III bond release under Industrial Land Use release. This leaves 59.45 <br />bonded acres remaining, of which 51.40 acres have been Phase I and Phase II bond released <br />but still need a Phase III bond release. 8.05 of these acres need a Phase I, II, and III bond <br />release. This 8.05 acres is comprised of Apache Shaft upper (.9), Apache Shaft lower (.25), <br />NW-1 vent shaft (1.2), ponds 3 and 4 (5.6), and RR track (.1). 59.45 total acres still need a <br />Phase III release. <br />Bond release phase Achieved LOM Total Remaining acres <br />Phase I 58.12 ac 66.17 ac 8.05 <br />Phase II 58.12 ac 66.17 ac 8.05 <br />Phase III 6.72 ac 66.17 ac 59.45 (51.40 + 8.05) <br />Thank you for completing your reclamation reporting in a timely manner. We have no further <br />questions at this time. <br />Sincer y, /d~ <br />Kent Gorham <br />Environmental Protection Specialist II <br />Office of <br />Mined Land Reclamation <br />Office of <br />Active and InaRive Mines <br />Colorado <br />Geological Survey <br />