2010-02-02_INSPECTION - M1981185

• Permit No: M1981185
• IBM Index Class Name: INSPECTION
• Doc Date: 2/2/2010
• Doc Name: Response to inspection report
• From: R2 Incorporated
• To: DRMS
• Inspection Date: 11/24/2009
• Email Name: WHE
• Media Type: D
• Archive: No

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R21NCORPORATED
'+/CRONUFNrAL AND F \1GNV ERINC SERVICES
GEORGE ML ROBINSON FEB 10 2010
1 E2ICH RAUBER P.E
R Divieion of Reciama6on,
Mining and Safety
STRA_rE=AI9.Y PCKTKWf=A-11ECH%1CA1.LY PREPAWD
January 26, 2010
Mr. Wallace Erickson
Colorado Division of Reclamation, Mining and Safety
691 CR 233, Suite A-2
Durango, CO 81301
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Re: Wildcat Mayday Mine Bond Estimate, LaPlata County, Colorado
Dear Mr. Erickson,
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On behalf of Wildcat Mining Company, R Squared (R2), Inc. respectfully requests the Colorado
Division of Reclamation Mining and Safety revisit the bonding calculations summarized in your
December 17, 2009 Mayday Inspection Report. Our request is based on the information Wildcat
included in their recently submitted Mayday mine permit application. The purpose of this
request is to initiate a process to formally modify the bond requirements outlined in your report
prior to the February 2010 board meeting.
We believe the bond estimate of $148,329.00 summarized in your inspection report may be
reasonable under the assumptions presented in your report however Wildcat has estimated the
Mayday mine operation bond should be approximately $25,000.00 (Table 1). As an example,
two line items in your bonding estimate-that are not contemplated-suggest the mill will be
demolished and disposed of off -site. The bonding estimate for these two activities alone
exceeds $90,000, plus the indirect costs.
Wildcat's bond estimate of $25,000.00 is summarized on Table 1 where the following
assumptions were applied:
o The processing and mill will be buried on site within Portal No. 1
o The hourly rates for the specified work are consistent with the costs published by Means
(CostWorks2009)
o Portal No. 1 and No. 2 backfill and grading will return the bench to approximate original
contours
o Sediment control structures (basins, ditches, culverts etc) will be removed after the
portals have been backfilled and revegetated
• The disturbed area within the Mayday permit area is equal to or less than 4.5 acres.
Current disturbed acres are less than 3 acres.
9 Fertilizers and irrigation will not be required and
o Debris (solid materials) will be buried within the closed mine
"Strutegirally Positioned - Technically Prepared"
9034 E Easter PI Suite 201, Centennial, Colorado 80112, p: [phone], £ [phone]