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Esc <br />STATE OF COLORP,pO <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) 866-3567 <br />FAX: (303) 832-8106 <br />i/ January 8, 2008 <br />Mr Mickey Fouts <br />~OAG Corporation <br />PO Box 402 <br />200 South Wilcox Street <br />Castle Rock, CO 80104 <br />RE: Notice of Intent to Conduct Prospecting Operations <br />COAG Corporation; File No. P-20Q7-069; Adequacy Review <br />Dear Mr. Fouts, <br />COLORADO <br />D I V I S ION O F <br />RECLAMATION <br />MINING <br />SA ET'Y <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W, Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Reclamation, Mining and Safety ("Division") received, your Notice of Intent ("NOI") to <br />Conduct Exploration for the COAG Corporation ("COAG") Prospecting Project; File No. P-2007-069. <br />The Division reviewed the NOI for adequacy. Please address the following items; <br />1. COAG submitted an interim reclamation bond in the amount of $7,000.00. COAG will need to <br />submit the bond form titled, "One Site Prospectins? Financial Warranty Check for Deposit in State <br />Treasury." The form is attached or ><t can be downloaded from the Division's web page located at <br /> us/ProspectingForms htm. <br />2. The map submitted in the NOI application needs to be signed by a registered land surveyor, <br />professional engineer, or other qualified person. Please resubmit the maps with the appropriate <br />signatures. <br />3. The NOI indicates that 1,000 tons of material will be extracted or moved under this prospecting <br />permit. COAG has not explained or defined how the material will be extracted, where the <br />material will be stockpiled, the characteristics of the waste rock and ultimately how the material <br />will be reclaimed to achieve the performance standards of Rule 3 of the Hard Rock Metal Mining <br />Rules and Regulations. The applicant will need to specify where in the existing Franklin Mine <br />shafts and tunnels the material will be extracted (or area explored), specify if the material is <br />acid-forming material and how the material will be handled and disposed of in a manner that <br />will protect the drainage system from pollution. Please be aware that any new piles or dumps <br />created or expanded will need to be specified in the application, located on a map, included in <br />the reclamation plan, and included in the reclamation cost estimate. <br />4. Please specify a reclamation plan for any waste piles created to ensure adequate stability, <br />preventing leaching of toxic or acid forming materials and to control erosion and siltation of the <br />affected lands. In particular, describe the reclaimed configuration and slope of the material and <br />how the pile will be constructed and revegetated to control erosion. <br />Office of <br />Office of <br />Mined Land Reclamation Denver Grand -unction Duraneo c~r;,,o -,..,~ ~.,~,..;,,,, AA:...,.. <br />