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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) 866-3567 <br />FAX: (303) 832-8106 <br />July 18, 2008 <br />Kye Abraham <br />-V?,LKA International, Inc. <br />372447 th St. Ct. NW <br />Gig Harbor, WA 98335 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />?J SAFETY <br />Jv4? Bill Ritter, Jr. <br />p Governor <br />0?bQj0 d 2O0(? Harris D. Sherman <br />%; in Qf KLLExecutive Director <br />9 ?por 1017 <br />, Ronald W. Cattany <br />`dd Division Director <br />Natural Resource Trustee <br />V ?' V <br />Re: Golden Wonder Mne, DRMS Permit No. M- 1978-09 1 UG, Technical Revision TR-2, <br />Adequate for Approval, Notice of Bond Increase. <br />Dear Mr. Abraham, <br />I have finished my review of the technical revision for the above-named permitted mine, which <br />addresses the installation of up to three wells at the Level 6 pad area, to be maintained and used as <br />piezometers and sampling wells. The technical revision application was found to be adequate on July <br />17, 2008, and was approved on that date. <br />Since the piezometer wells are to be maintained throughout the life of the operation, then removed <br />during reclamation, there are some minor reclamation costs associated with them. This constitutes an <br />increase to your posted bond amount. The Division currently holds a $44,000 bond for this operation, <br />an amount which has been considered adequate based on the level of disturbance up until now. The <br />new reclamation costs associated with the removal and sealing of the three wells represents an <br />additional cost of $1,757. This total includes direct costs: the pulling or cutting of the casings, filling <br />the wells with bentonite (chips or abandonment gel), capping the holes with cement, mobilizing a truck <br />and crew from Lake City, plus various indirect costs. <br />There are required drill hole closure methods to be used, as well as a requirement to file drill hole <br />abandonment reports, when they are sealed. After these wells are acceptably sealed and fully <br />reclaimed, their closure costs may be eliminated from the bond. Please contact me with any questions <br />about the methods or the forms to be provided. <br />After installation. of the wells, please provide their "as-built" description, including actual location, <br />diameter and depth, angle and direction, casing, etc., with map and pictures. The map should include <br />the permit boundary, as required in Rule 6. The results of future piezometer monitoring should be <br />provided to this office as sampling occurs. <br />In addition to informing you of the Division's approval of Technical Revision TR-2, this letter is your <br />notice of a bond increase related to this revision. Pursuant to regulations and statute, an operator must <br />160 <br />AJ w <br />Office of Office of <br />Mined Land Reclamation Denver • Grand lunction • Durango Active and Inactive Mines