1988-01-04_INSPECTION - M1977378 (2)

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Question: 10. The Division currently maintains a $447,543. 00 Letter of Credit financial warranty. The amendment was approved with an increase of bond to $1, 035 , 716 . 00. The additional $558 , 173. 00 warranty required remittal within 60 days of the amendment approval , April 22, 1987, i .e. , By June 22, 1987. Please remit this as soon as possible. Response: The SGC financial warranty in the amount of $447, 543 . 00 is currently with the Royal Bank of Canada in Canada. This has been remitted to the State of Colorado through the United Bank of Denver, which incurs added expense for SGC and Echo Bay Mines Ltd. In order to reduce our financial burden for the reclamation financial warranty, Echo Bay Mines Ltd. and SGC will obtain the additional $558 , 173 . 00 letter of credit from the Royal Bank of Canada in Portland Oregon and remit directly to the Division. Upon the anniversary date of the original $447, 543 . 00 letter of credit in November 20, 1988, the two notes will be combined under one letter of credit through the Royal Bank of Canada in Portland Oregon. Until that time two financial warranties will be held totalling $1 , 035, 716 . 00. Processing of the letter of credit for the additional $556 , 173 . 00 is currently underway, and it will be remitted to the division in early January 1988 . Question: 11. The mining operation exhibited some vast improvement over the last two years. The Division would like to commend Frank Bergstrom for his courteous , efficient and diligent manner with which he works with our office as well as in the field, as evidenced by the improvements noted, specifically at the Terry and American Tunnels. Although this report may sound negative in scope, it is realized that a mining operation as historic and large as the Sunnyside requires continued maintenance to insure environmental mitigation to the maximum extent possible. These are the problems noted that require further attention to correct.