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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 />October 14, 2008 tl <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Mr. Richard Blubaugh / <br />Powertech (USA) Inc. a NON CONFIDENTIAL Ronald W. Cattany <br />Division Director <br />5575 DTC Parkway, Suite 140 Natural Resource Trustee <br />Greenwood Village, CO 80111 <br />RE: Centennial Project, Receipt of Modification to Notice of Intent, File No. P-2008-043 <br />Dear Mr. Blubaugh: <br />The Colorado Division of Reclamation, Mining, and Safety (DRMS) has received your modification to <br />Notice of Intent to Conduct Prospecting, that modification being dated September 15, 2008 (received by <br />DRMS September 16, 2008). Our initial review indicates that it is incomplete. Please address the following <br />items at your earliest convenience bearing in mind that if you have not addressed these items within sixty <br />days of the date of this letter the DRMS may terminate consideration of the modification (rule 5.1.3 of the <br />Mineral Rules and Regulations of the Mined Land Reclamation Board). <br />Section III, item 6.G. of the modification specifies the total project area to be disturbed at 2.605 acres. <br />Section III, item 6.A. lists project disturbances as 9 drill pads with dimensions of up to 80' x 200', or 3.3 <br />acres. Please provide the source and justification for the 2.605 acre figure. The DRMS has used the 3.3 acre <br />figure for the purpose of estimating revegetation costs (see enclosed cost estimate spreadsheets). These costs <br />can be re-estimated and the correct amount for the reclamation bond can be established if you commit to <br />limiting disturbances to the lesser acreage. <br />Section IV, item 5 of the modification states that disturbed areas will be seeded at the conclusion of grading <br />operations. To maximize the potential for vegetation success, the DRMS will require seeding be done in <br />November or in April, with November being the preferred option. Please commit to these seeding windows. <br />The DBMS has already discussed with Michael Beshore of Powertech the need to provide fully executed <br />signature pages for this modification and the need for Powertech to commit to the same mud pit testing and <br />reporting protocols approved in the initial prospecting notice subject to this modification. Mr. Beshore stated <br />that that these documents were being prepared for submittal, so are not discussed further here. <br />DRMS has estimated the costs to reclaim prospecting disturbances proposed in the modification, including <br />plugging and abandonment of all drill holes, at $129,000.00 (see enclosed reclamation cost estimate). Bond <br />in this amount must be provided. Prospecting bond forms are available online at <br /> You may not commence these prospecting operations until <br />the bond has been submitted and you have been notified in writing that the bond has been accepted by the <br />DBMS. <br />Office of <br />office of <br />Mined Land Reclamation Denver • Grand junction • Durango Active and Inactive Mines