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STATE OF COLORADO <br />G ' . DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />June 1, 2011 <br />Karmen King <br />Grayling LLC <br />18050 Road G <br />Cortez, CO 81321 <br />RECEIV <br />JUN 0 8 2011 <br />Division of ReclamGtion, <br />Mining and Safety <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. PiReda <br />Director <br />Re: Lower Mountain Top Mine, Notice of Intent (NOI), File No. P-2011-009, Technical Responses are <br />Adequate, Reclamation Cost Estimate, and NOI is Approved. <br />Dear Ms. King, <br />The Division has reviewed your May 4, 2011 letter, and finds that all items needed to "complete" the NOI are <br />present, and all technical responses submitted to address the adequacy issues are satisfactory. It is the Division's <br />position that the NOI meets all requirements, except for the lack of a bond. The Division therefore approves the <br />NOI, as of the date of this letter. We are also sending the operator a copy of this letter and all enclosures. <br />The Division has estimated the bond amount that the operator will be required to post before any activity may <br />commence. The bond amount is $6,855.00, as shown in the enclosed bond estimate packet. Please review the task <br />figures and notify me promptly if you notice any errors or omissions. Several assumptions were used in the bond <br />calculation, and discussion of each appears below. Also included in the list below are the operational conditions, <br />which accompany this project. (Note: the numbers do not correlate to the numbers in our last correspondence.) <br />1. The volume of waste rock to be brought to the surface for permanent placement will be no greater than 2,000 <br />cubic yards. It will initially be placed on the pad near the concrete slab, and then pushed against the adjacent <br />toe of the hill slope. The gradient of the final slope of waste rock created by this placement will be no <br />steeper than 3:1. All related activities will be conducted on the patented claims (Zigzag M.S. and Blythe) to <br />which this operator has right-of-entry. <br />2. The emplaced waste rock is intended to buttress and stabilize the toe of the hill. Any seeps or springs present <br />there should not be impeded, but allowance must be made for continued flow to the pond. Permanent <br />placement of this waste rock may occupy portions of the road prism, and possibly block it, if it is acceptable <br />to the claim owner. No rock is to be put in the sediment pond. <br />3. Only inert rock, and no mineralized material (such as ore or vein material, sub-ore, low-grade ore, etc.) may <br />be placed as permanent fill in the surface repository. <br />4. The waste rock will be visually scrutinized for mineralization before placement. The waste rock will also be <br />periodically tested for mineralization, and the results forwarded to the Division promptly. <br />5. There is no bermed, impermeable ore pad onsite, and none is required to be constructed at this time. Ore or <br />other mineralized materials brought to the surface must be removed frequently, and accumulation cannot <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines