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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY "w, d <br />J <br />Department of Natural Resources 4 <br />1313 Sherman St., Room 215 O L O R <br />O <br />0 <br />Denver, Colorado 80203 <br />" D <br />N O <br />F <br />Phone: (303) 866-3567 i RECLAMATION <br />FAX: (303) 832-8106 MINING <br /> <br /> SAFETY <br />19 May 2011 <br /> John W. Hickenlooper <br />Mr. Kevin Lawrence Governor <br />Sara Ray Silver Mining Mike King <br />127 Elm St Executive Director <br />CO 80461 <br />Leadville Lorett <br />o E. Pineda <br />, Dire t <br />Re: Notice of Intent to Conduct Prospecting; Ajax Mine; Park County <br />File No. P-2011-004; Approval and Financial Warranty Request <br />Dear Mr. Lawrence: <br />The Division of Reclamation, Mining, and Safety (Division) received your Notice of Intent to Conduct <br />Prospecting Operations (NOI) P-2011-004 on 14 March 2011. Your notice was reviewed by our office <br />and approved on 18 May 2011. <br />A financial warranty must be submitted to the Division and approved before prospecting activities may <br />commence. The financial warranty required by the Division for this NOI has been determined to be <br />$2,000. In accordance with Hardrock Rule 4.2.1(6), when prospecting on federal land and the federal <br />land management agency requires that a financial warranty be posted with their agency, the amount of <br />financial warranty posted with the Division shall be the difference between the amount required by the <br />federal land management agency, and the amount required by the Division. In no event shall the amount <br />of Financial Warranty posted with the Division be less than $100. This financial warranty must be <br />submitted on the appropriate Mined Land Reclamation Board approved form, which is available from <br />our office or can be downloaded from our website at (http://mining.state.co.us/). You have 60 days <br />from the date of this letter to post the financial warranty or the NOI may be denied. If you post <br />financial warranty with the U.S. Forest Service, please provide evidence of receipt of financial warranty <br />by the U.S. Forest Service. <br />Your application indicates that explosives will be used on site. You should contact the State Division of <br />Oil and Public Safety for information regarding the required state and federal permit(s): <br />(http://oil.cdle. state.co.us/public%20safety/Explosives/Explosives%20FAQs.asp# 1 expl) <br />Please contact Alysha Hernandez at 303-866-3567 x8125 with questions regarding the financial <br />warranty. Other questions can be directed to me at (303) 866-3567 x8108. <br />Sincerely, <br />d4/0`'?/ <br />David Bird <br />Division of Reclamation, Mining, and Safety <br />cc: Alysha Hernandez - DRMS <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction Durango Active and Inactive Mines