2011-08-24_PERMIT FILE - P2011025

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DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866 -3567 FAX: (303) 832 -8106 August 24, 2011 Michael Leidich Lynx -Royal JV LLC 813 14 Street, Suite A Golden, CO 80401 Dear Mr. Leidich, STATE OF COLORADO ECEIV AUG 2 9 2011 Division of Reclamation, Mining and Safety Loretta E. Pineda Director Mike King Executive Director Re: Wray Mesa Project, Preliminary Technical Review of Notice of Intent to Conduct Prospecting (NOI) File No. P- 2011 -025. . The Division is reviewing the Notice of Intent to Conduct Prospecting (NOI) named above, and has identified a few items upon which we must comment or request clarification. These are listed in the paragraphs below. Please provide responses to each item. The description of the drill holes (NOI form, Item 6) states that the drill holes will be 425 feet deep. However, that figure is the average depth, not the maximum expected depth. The maximum depth is estimated to be 620 feet. Since drill hole closure cost enters into the bond estimate, the maximum depth will be the figure used to calculate the bond amount. Please confirm whether this depth figure is correct. Up to three drill holes will be open at one time, so the bond estimate will include closure costs for three holes. Please note that the depth you included for this corresponds to the 620 -foot depth noted above. The NOI states that no new or significantly upgraded roads will be used in this project, and no reclamation costs will be included in the bond, unless the BLM requires certain reclamation to be performed on the existing trails you plan to use. If this becomes the case, please forward any pertinent correspondence to this office so adjustment may be made to the plan and the bond. No bond was submitted with this modification, which is a deficiency of the NOI submittal, but the Division will calculate a bond amount for this NOI during the review period and notify you as to the Office of Mined Land Reclamation COLORADO D I V I S I O N O F RECLAMATION MINING —&— SAFETY John W. Hickenlooper Governor Besides grading and topsoil replacement to reclaim the drill pads, please confirm that you will scatter all brush and woody debris over the disturbed area that was stripped prior to disturbance. The topographic map shows the proposed drill sites to be on generally gently sloping surfaces. Your plan states that ephemeral drainages will be avoided, but you should also include temporary sediment control structures, such as earthen berms and/or straw wattles or silt fences, wherever needed. These controls should also be used if the mud pits will be decanted after settling. Please confirm these items. Office of Denver • Grand Junction • Durango Active and Inactive Mines