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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 />January 6, 2010 <br />Mr. Thomas Musch <br />Mr. Stanley J. Conner <br />19140 Co. Rd. 31.9 <br />Weston, CO 81091-9752 <br />Re: Lee No. 2 Placer, Gilpin County; Permit No: M-1987-072 <br />Notice of Financial Warranty Increase -- <br />Dear Mssrs. Musch and Conner: <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 />As a result of the field inspection conducted on 16 December 2009, the Division of Reclamation, Mining & <br />Safety (Division) has increased the Financial Warranty for the Lee No. 2 Placer to $2,480 in accordance with <br />Rule 4.2.1 of the Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for Hard <br />Rock, Metal and Designated Mining Operations. This is an increase of $1,480 over the existing required <br />Financial Warranty of $1,000. Preliminary notification of this increase was included in the Inspection Report <br />sent by the Division to you on 05 January 2010. <br />Amendment of the current Financial Warranty, or submittal of a new Financial Warranty reflecting the increase, <br />must be submitted to the Division within 90 days from the date of this letter, which is 2 April 2010. Questions <br />regarding the Financial Warranty should be directed to Elizabeth Merry in our office at 303-866-3567 x8148. <br />Other questions maybe directed to me at 303-866-3567 x8108. <br />Sincerely, <br />David Bird <br />Reclamation Specialist <br />cc: Stephanie Carter - BLM, Canon City <br />Elizabeth Merry - DRMS <br />Tony Waldron - DRMS <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines