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<br />S I LVIE _', R r I N C 4 0) <br />savt,) 2vL.suvey-mLvu(vugjoWvt'veoti e <br />*** CERTIFIED MAIL *** <br />7007 2560 000 4212 5122 <br />RETURN RECEIPT REQUESTED <br />October 31, 2009 <br />State of Colorado <br />Department of Natural Resources <br />Division of Reclamation and Mining Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />Attn: Mary Rodriguez <br />RE: 2009 Annual Report for Bulldog Mine Operation, Permit No. M-1977-215 <br />Dear Ms. Rodriguez, <br />This annual report for the Bulldog Mine Operation, Permit No. M-1977-215 is being submitted <br />to the Division of Reclamation, Mining and Safety by Rio Grande Silver, Inc. on behalf of <br />Emerald Mining & Leasing, LLC. Emerald Mining & Leasing entered into a joint venture <br />agreement with Rio Grande Silver, Inc. in 2008. <br />New Disturbance <br />In November 2008, the Bulldog Mine 9700 portal was reopened to gain access to inspect the <br />underground workings. The Bulldog Mine 9700 portal is located in the NW corner of <br />Section 36, T42N, RI W of NMPM, Mineral County, Colorado, within `Permit Area A' as <br />specified in Exhibit A (Legal Description), and described in Exhibit D (Mining Plan), of <br />Permit No. M-1977-215. The 9700 portal is situated on private ground owned by Rio <br />Grande Silver, Inc., Emerald Mining & Leasing, LLC, and Golden 8 Mining, LLC. This <br />work was conducted under Technical Revision TR-14 to Permit No. M-1977-215, which was <br />approved by DRMS in November 2008. Figure I is a location map showing the portal site. <br />The 9700 portal was closed by Homestake Mining Company in 1992 as part of their <br />reclamation of the Bulldog Mine and related facilities. Closure consisted of backfilling the <br />portal with native material, primarily rock talus. Reopening of the 9700 portal by Rio <br />Grande Silver consisted of removal of the rock talus fill and installation of a culvert, 36 <br />inches in diameter and 30 feet in length; after which the rock talus fill was placed back into <br />the portal opening, leaving the culvert as the only entrance to the Bulldog 9700 level. The <br />culvert opening is secured by a locked 1/4-inch thick solid steel door. The frame for the steel <br />door is welded to the culvert; hinges are backwards-facing and the locking mechanism is <br />protected by a steel `reach-under' box welded to the door to prevent tampering and entry to <br />the 9700 by unauthorized personnel. Before and after photos of the 9700 portal area are <br />included as Figures 2 and 3, respectively.