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J~ <br />REGULATORY PERNIITS MANAGEMENT, INC. <br />7425 Winter Berry Ln., Castle Rock; Colorado 80108 <br />Apri130, 2008 <br />~Mr. Cazl Mount <br />Div. of Reclamation, Mining and Safety <br />Rm. 215 <br />1313 Sherman St., Denver, CO 80203 <br />Re: Second Adequacy Response, File No. P-2007-069 <br /> <br />MAY 0 ~ 2008 / <br />,_ <br />Division of declamation, <br />Pvtining and Safety J" <br />Dear Mr. Mount: <br />Below aze COAG Corporation responses to the second adequacy review for NOI, File No. P- <br />2007-069. <br />1. "Please inform the Division as to the intent of the $2,000.00 and $7,000.00 bonds. If the <br />$7,000.00 bond is to remain in place, the bond form noted above will need to be submitted." <br />•~~ ~. <br />Response: Please return the $7,000.00 bond to COAG Corporation, in care of Mr. Mickey <br />Fouts. <br />2. and 3. "COAL will-need to commit to securing both'the Freighter Friends Shaft and the <br />Franklin Shaft as a component of the reclamation plan." <br />Response: COAG Corporation is in the process of constructing and then placing the closures <br />on the Freighter Friends Shaft and Franklin Shaft. These structures aze being constructed <br />according to DRMS design standazds. Therefore, COAG Corporation does not expect to have to <br />bond for these structures once the DRMS reviews the closures. <br />4. "Please specify the amount of material to be stored underground, the location of <br />underground storage and the characteristics of the waste rock." <br />Response: According to Franklin Mine documents in the Division's files, the surrounding <br />rocks are highly fractured and mineralized granites, gneiss, and schists. Given that the operation <br />is a prospecting activity and will be removing bulk samples, what limited waste rock that is <br />generated will be placed in adjacent dry stopes. The original application states that the <br />Prospector, COAG Corporation intends to move up 1,000 tons of material. Samples, as stated in <br />earlier submittals will be taken from various azeas of the underground workings as COAG <br />Corporation's geologist deems appropriate for investigation. In addition, we see nothing in Rule <br />5.1.2 that specifies that a prospector must address this question as part of an NOI if it does not <br />Phone: (303) 854-7499 FAX: (303) 660-3852 <br />