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1. Please see enclosed signature pages signed. <br />2. We commit to plug and abandon the proposed core holes at a cost of $14,900.00 and <br />will post a reclamation bond in this amount prior to drilling the holes. We will also <br />commit to sealing the entire length of the holes using tremied cement grout or high <br />quality sodium bentonite gel if water is encountered during drilling and to install the <br />sealing material immediately upon completion of drilling. If underground voids are <br />drilled into, drilling will cease and the DRMS will be contacted to confer on plugging of <br />hole(s). <br />3. We commit that cuttings that might remain at the surface will be spread no thicker than <br />'/2 inch. <br />4. Milling will occur during approximately the summer of 2011. However, we would <br />request to make necessary mill building and equipment repairs in early summer, 2010 and <br />to start construction on the footing for Impoundment D at the mill. Construction will be <br />compiled of waste rock and glacial til and topped off with available mill sands to provide <br />a benign surface for proper fitting of Impoundment Liner. One major advantage of <br />Impoundment D is location, because the construction will be suited to receive the current <br />toxic run off of the 50' Level waste dump. <br />5. The proposed gate is on Forest Service land and will be installed where the present <br />gate stands. Patti Turacek and Associates inspected the mine site and mill site area. (See <br />attached gate specifications.) The gate will remain after prospecting is completed, if <br />sufficient ores are located. <br />6. At this time, no maintenance in perpetuity concepts can be provided or guaranteed. <br />(See attached Santiago mill description, demolition and removal estimates.)