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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 />COL O R A D O <br />Denver, Colorado 80203 DIVISION O F <br />Phone: (303) 866-3567 RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> <br /> SAFETY <br />March 4, 2011 <br /> Governor <br />Mr. George Robinson MAR O8' 011 Mike King <br />Executive Director <br />R Squared, Inc. <br />pivision ci (reclamation, <br />Fit ,,,;jig and';-e Y Loretta E. Pineda <br />5555 DTC Parkway, Suite A-4000 Director <br />Greenwood Village, CO 80111 <br />RE: May Day/Idaho Mine Complex, Permit No. M-1981-185, Bulk Sampling Request Denial <br />Mr. Robinson: <br />DRMS has reviewed Wildcat Mining Corporation's (WMC) request to use a backhoe to remove a <br />10 ton bulk sample of ore from a location between the old mill building and the pond at the <br />Idaho Mill site. Currently, this site is not covered by a reclamation permit or NOI and the <br />proposed activity would qualify as prospecting. This location is also subject to a Cease and <br />Desist Order issued by the Mined Land Reclamation Board. Therefore, DRMS must deny <br />Wildcat's request. <br />DRMS will allow for hand picking of two 55 gallon drums of "ore" from the pile identified in <br />your proposed bulk sampling request. Please be aware that this location has not been <br />permitted under the Mined Land Reclamation Act. Therefore, this pile of "ore" most likely <br />originated pre-law and could have come from anywhere. With that in mind, unless the origin of <br />the pile can be definitively determined and documented, DRMS will not be able to accept <br />analysis results from this material as demonstration data to be included in the CN-01 <br />application. <br />Please be aware that in an August 5, 2010 correspondence to Greenburg-Traurig, and <br />reiterated in an August 24, 2010 email to R Squared, DRMS responded to WMC's previous <br />requests to conduct prospecting activities by stating that Wildcat should not submit NOI's at <br />this time, but concentrate on the 112d conversion as specified in our stipulated agreement <br />executed July 8, 2010. That direction is emphasized again herein. The appropriate time for <br />these activities is after WMC secures DRMS approval of CN-01 and DRMS acceptance of the <br />required financial warranty. <br />If you need additional information, please contact me at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South Third Street, Room 301, Grand Junction, <br />Colorado 81501, phone no. 970-243-6368. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines