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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 5, 2009 <br />Mr. Mike Clements <br />AID, Wildcat Mining Corporation <br />3643. Baker Street <br />San Diego, CA 92117 <br />Re: Reason To Believe a Violation Exists, Forfeiture of Financial Warranty, <br />Wildcat Mining Corporation, Permit No. M-2006-069,-Idaho Mill, <br />Scheduling of Board Hearing <br />Dear Mr. Clements: <br /> <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <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 />On September 3, 2009, the Division of Reclamation, Mining and Safety (Division) conducted an inspection of <br />the Idaho Mill site and found that Wildcat Mining Corporation was using the unpermitted road, subject of a <br />standing Cease and Desist Order associated with Violation MV-2009-007, to support mining activities at the <br />May Day Mine. <br />Pursuant to C.R.S. 34-32-124(1), the Division believes this is in violation of the Colorado Mined Land <br />Reclamation Act for failure comply with the Cease and Desist Order associated with Violation MV-2009-007. <br />Therefore, the Division has found reason to believe a violation exists to the Law and has scheduled this matter <br />before the Mined Land Reclamation Board (Board). <br />A Formal Board Hearing will be held during the November 12-13, 2009 Board meeting for consideration of a <br />possible violation. The hearing will be held at 1313 Sherman Street, Room 318, Denver, Colorado, beginning <br />at 9:00 a.m. or as soon thereafter as the matter can be considered. At that hearing you will have the <br />opportunity to be represented and heard. It will be reiterated that there is reason to believe that you are in <br />violation of the provisions noted above. <br />If the Board finds a violation at this hearing, it may issue a Cease and Desist Order and assess a Civil Penalty <br />in the amount of $50 to $200 for each day of violation. Additionally, the Board can deny the permit and <br />pursuant to C.R.S. 34-32-118(1)(a), forfeit the $56,233 financial warranty. If you have evidence indicating <br />that the possible violation noted above does not exist or has been corrected, please provide it to the Division as <br />soon as possible or bring it to the hearing. <br />Following the hearing, all parties have an opportunity to review and comment on a draft of the Board's order <br />before it becomes final. If you wish to do so, you must provide the Board with a written request to review the <br />draft order prior to or at the time of your hearing, or you must inform the Board orally during the hearing that <br />you request to review the draft order. You must include your mailing address and, if possible, a fax or email <br />address. You will be provided a copy of the draft order for your review as soon as it is available. The Board <br />must receive your comments on the draft order within ten (10) calendar days of the date the draft order is <br />mailed, unless that deadline is extended. Please note that the Division has requested and will be allowed to <br />Office of Office of <br />Mined Land Reclamation Denver - Grand Junction - Durango Active and Inactive Mines