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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Depan:ment of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />May 3, 2010 <br />Michael Leidich <br />Lynx-Royal JV LLC <br />2030 Foothills Rd. <br />Golden, CO 80401 <br />cow <br />FAY 0 6 200 <br />Division of kecia,nagon, <br />Mining and Safety <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SA FETY <br />Bill Ritter, Jr. <br />Governor <br />James B. Martin <br />Executive Director <br />RE: Notice of Intent to Conduct Prospecting Operations for Fire House East Project; DRMS File <br />No. P-2009-032; Financial Warranty Acceptance and Approval to Commence Prospecting. <br />Dear Mr. Leidich, <br />The Division approved your Notice of Intent to Conduct Prospecting on November 30, 2009. Our letter <br />indicated that your notice was approved with the exception of an adequate financial warranty. On May <br />3, 2010 the Division received and approved your One-Site Prospecting Cash Bond, number 3031, in the <br />amount of $4,928.00 <br />Therefore, final approval for your Notice of Intent to Conduct Prospecting at Fire House East Project is <br />hereby granted and you may commence operations at this site. <br />Also, in accordance with Rule 5.6, an Annual Report and associated fee of $86.00 must be submitted on your notice <br />approval anniversary date for each year following the filing of an NOI until reclamation responsibility release is <br />granted. In addition, Rule 5.3.4 requires the prospector to notify the Division of completion of prospecting operations <br />and Rule 5.7 requires the submittal of a final report for drill holes within 60 days of completion of the abandonment for <br />artesian flow holes and within one year of completion of the abandonment for any other drill holes. (Form enclosed <br />and also available on the DRMS website at http://www.mining.state.co.us/) <br />U' you have any questions, please contact me at 970-247-5193. <br />Sincerely, <br />it <br />Bob Oswald <br />Environmental Protection Specialist <br />Cc: Steve Shuey, DRMS <br />James Blair, BLM Dolores <br />Enclosure(s) Abandonment Hole Report Form <br />(c A10-05docs\fire house east appr fw/rco) <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines