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rsneres MININI INC. <br />August 24, 2012 <br />Mr. Jared Ebert <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman St., Room 215 <br />Denver, CO 80203 <br />11I31��17 <br />Dear Jared: <br />Subject: Trapper Mine (Permit No. C -81 -010) Technical Revision TR -109 <br />2011 Annual Report, Appendix W <br />In response to comments from the second adequacy review dated August 21, 2012. <br />The Colorado Division of Reclamation, Mining and Safety agreed with comments <br />submitted July 23, 2012 with one exception: <br />"The second item is in regards to a parcel A -B -98. This parcel was granted Phase I bond <br />release during SL5 for 50.7 acres. This parcel was also part of the SL6 Phase II bond <br />release application. According to your response letter, a portion of the parcel was removed <br />from the SL6 release due projected re- disturbance reducing the Phase II release acreage to <br />40.5 acres. However; according to the Divisions files, the parcel was reduced by 10.3 acres <br />in a letter dated February 17, 2005. This should have reduced the acreage to 40.4 acres for <br />this parcel. Also, according to the SL10 application parcel A -B -98 was 45.9 acres in size not <br />45.7 as indicated in the response letter. Given this, 5.5 acres of parcel A -B -98 received <br />Phase III bond release but not Phase II (45.9 acres minus 40.4 acres). Your response letter <br />requested the Division to account 5.2 acres to the Phase II release acreage since this portion <br />of the parcel received Phase III bond release. The Division will grant this request but <br />believes the acreage should be increase to 5.5 acres for the reasons noted above. " <br />Trapper's response: <br />Parcel A -B -98 has had several discrepancies in acreage through the three bond release <br />phases. The parcel was granted Phase I bond release at 50.7 acres during SL -5. The <br />parcel was released at 40.5 acres for Phase II in SL -6 and 45.7 for Phase III in SL -10. <br />During and between these releases several things occurred. First the letter referenced <br />from February 17, 2005 notes that 10.3 acres was removed from the parcel for potential <br />future re- disturbance, but the letter references that the 10.3 acres was deducted from a <br />total parcel acreage of 50.8 acres. Trapper believes that the 50.8 acres is an error of <br />some sort. However, it results in a total of 40.5 acres that was released in SL -6. Since <br />P.O. Box 187 Craig, Colorado 81626 (970) 824 -4401 <br />