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sk Sophia Mofifing Ltd. <br />C, <br />Attn. Chris M' <br />Ouray Count - Road and Bridge Dept. <br />11 Mall.Road <br />Ridgway, CO <br />Dear Chris; <br />This letter and the attached maps provide a summary of the proposed actions to occur within the Lower <br />Mountain Top mine site which is comprised of patented mine claims being operated by the 'St. Sophia <br />Holding Ltd.' Company (Larry O'Connor/President). This project is referred to as the Lower Mountain Top <br />mine. The St. Sophia Holding Ltd. company plans to pursue underground exploration and bulk sampling of <br />a silver/gold vein structure within the workings of the mine. The site has existing roads and existing surface <br />pad features that will be relied upon for the prospecting efforts. There is a minimal amount of new surface <br />disturbance. If viable ore reserves are discovered, this project will transition into a mine plan of operations. <br />The proposed actions are concurrently being reviewed by the Colorado Division of Reclamation, Mining <br />and Safety (DRMS) for a 'Notice of Intent permit to Conduct Prospecting Operations' (NO1). Please <br />recognize that the accompanying map is confidential information. Please do not provide copies to entities <br />outside of the County. In the future, if mining is pursued, a copy of the final permit will be provided for your <br />files upon completion. There will be several 'phases' of activity over the course of the next several years. <br />These phases of activity are summarized as; 1) prospecting, and 2) either reclamation or mining (pending. <br />outcome of prospecting) as follows; <br />1) Prospecting (Spring 2011) will occur underground where exploration drilling and <br />refurbishment of underground workings. Waste rock produced as a result of the prospecting <br />will primarily be managed underground however a minimal amount will be placed within an <br />approved repository. Recovered ore will be transported off site to private ground., <br />2) Reclamation or Mining: The next phase of activity may involve mining if the results of the <br />prospecting identify a suitable resource. If prospecting does not identify a worth-while <br />resource, then the site will be reclaimed as per the NO1 reclamation requirements determined <br />by DRMS. If mining is to be pursued, a formal mine plan of operations will be submitted for <br />County review, and a new era of activity will begin. No details regarding, the mining activity are <br />described herein since the effort is unforeseeable at this time. We will continue to coordinate <br />with the County as this project progresses. <br />There will be a minimum of traffic created as a result of the proposed prospecting activities on site. <br />Approximately two standard sized passenger trucks will be used to transport personnel and equipment to <br />the project area. The amount of activity on site will be related to seasonal conditions. It is anticipated that <br />the work will be accomplished during a standard 5-day work week from late May, 2011 through October,