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Page 3 <br />Background Information for May Day Mine Permit No M-1981-185 <br />On March 2, 2007, the Office approved transfer of the 110(2) approved permit to Wildcat <br />Mining as a successor operator. <br />During a September 3, 2009 site inspection, the Office discovered that Wildcat Mining was <br />constructing an unpermitted portal at the Level 1 area, which constituted a possible violation <br />of the conditions of the approved permit. The Board considered the issue during the <br />November 12, 2009 hearing and found Violation MV-2009-035 for failure to comply with <br />permit conditions. The Board issued in writing Violation MV-2009-035 on December 10, <br />2009, and ordered Wildcat Mining to revise the permit within 60 days to address the new <br />portal. <br />During a November 24, 2009 site inspection, the Office discovered that Wildcat had not only <br />completed the construction of the unpermitted portal, but had also constructed an <br />unpermitted mill facility within the unpermitted portal. The Office believed that the <br />construction of the unpermitted mill facility constituted a possible violation of the conditions <br />of the approved permit and scheduled the issue for consideration during the February 10, <br />2010 Board meeting. <br />During the February 10, 2010 hearing, the Board found Wildcat Mining in violation of <br />permit conditions, and on March 5, 2010, issued Violation MV-2010-001. The corrective <br />actions of Violation MV-2010-001 require Wildcat Mining to update the reclamation permit <br />to address all major components of the operation within 180 days, due September 1, 2010. <br />Background Information for Amendment No 01 (AM-01) to the May Da Mine, Permit <br />No. M-1981-185 <br />Wildcat Mining filed amendment AM-01 to the May Day Mine, Permit No. M-1981-185, <br />with the Office on April 6, 2010. The apparent delay in filing of AM-01 involved two <br />issues: <br />1) On January 25, 2010, the Office received a 110(2) application for the May Day Mine <br />and Mill, File No. M-2010-005. Through the application for M-2010-005, Wildcat <br />Mining attempted to address the corrective actions of Violations MV-2009-035 and <br />MV-2010-001. Pursuant to Rule 1.4.1(8), the Office conducted a preliminary review <br />of the submitted materials and on February 7, 2010, informed Wildcat Mining that the <br />application for M-2010-005 was incomplete for the purposes of filing. In that <br />February 7, 2010 correspondence, the Office enumerated 34 filing deficiencies. On <br />March 22, 2010, Wildcat Mining withdrew the application for the May Day Mine and <br />Mill, File No. M-2010-005. <br />2) On March 16, 2010, the Office received an application to amend the existing permit <br />for the May Day Mine, Permit No. M-1981-185 (AM-01). Through AM-01 Wildcat