1996-08-09_REVISION - M1977378 ‎(3)‎

• Permit No: M1977378
• IBM Index Class Name: REVISION
• Doc Date: 8/9/1996
• Doc Name: Financial Warranty
• From: DMG
• To: Sunnyside Gold Corp
• Type & Sequence: TR14
• Media Type: D
• Archive: No

999
STATE OF COLORADO
a3fV'ISION OF MINERALS AND GEOLOGY
Department of Natural Resources
1313 Sherman St.,Room 215
POW,7T
Denver,Colorado 80203
Phone:[phone]
FAX:[phone] None
Fax Note 7671 Date --4 #of `�
From > �pages
DEPAPUMENT OF
NATURAL
"'�✓�t CJ ��C '� � T m
5 C° I� I•l C n RESOURCES
August 9, 1996 Phone#
Roy Romer
�.-. S z Fax# Governor
M Larry Perino l
me
/.n S ide Gold Corp. ecuS Lochhead
y P• Execs
Director
P.O. Box 177
Michael B.Long
Silverton, CO 81433 Division Director
RE: Financial Warranty for Bulkhead Replacement, Sunnyside
Mine, Technical Revision TR-01A, Permit No. M-77?378
Dear Mr. Perino: ✓✓ ,/
In order to satisfy Commitment #3 to the approval of Technical Revision
TR-014, Sunnyside Gold Corporation (SGC) has provided a Letter of Credit
in the amount of $500,000.00. This dollar amount was determined based on
the SGC estimate of discounted direct costs plus $115, 000. 00 to cover
indirect costs as detailed in your letter and attachments dated July 1,
1996. It is the Division's position that most of the discounts detailed
in your letter would not be realized in the event that the Division had
to replace the bulkheads under a bond forfeiture (see memorandum prepared
by Tom Gillis dated July 11, 1996) . The one discount item that would
obviously be realized is that a direct cost for a hoistman would not be
necessary. In addition, it is the Division's position that daily expenses
for project labor should be included in the estimate, and as such, your
direct cost for meals during the bulkhead concrete pours can be
discounted. Also, the Division believes that detailed indirect costs need
to be broken-out as a refinement to the SGC estimate. Based on the
foregoing discussion, the Division's estimate of direct and indirect costs
for bulkhead replacement are presented here:
Direct Costs: $550, 601. 00 from SGC estimate
(10,800. 00) hoistman
(902 . 00) meals during pour
40, 560. 00 $65 per diem for 624 laborer-days
Total Direct: $579,459. 00
Indirect Costs: $8982 . 00 Public Liability Insurance. . 1. 55% dir.
5650. 00 Performance Bond. . . . . . . . . . . . .975% dir.
57, 946. 00 Contractor' s Profit. . . . . . . . . 10. 0% dir.
11, 589. 00 Contractor's Contingency. . . . 2 . 0% dir.
Total Indirect: $84 , 167. 00
TOTAL CONSTRUCTION CONTRACT AMOUNT (direct plus overhead, profit, and
contingency) : $663 , 626.00