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EARDON MINING INDUSTRY CONSULTANTS 4 <br />TEEL LLC 18050 COUNTY ROAD G • CORTEZ. CO 81 321 • 970.565.0278 • MTOREARDONSTEEL.US <br />Bob Oswald <br />DRMS, Durango Field Office <br />691 CR 233, Suite A -2 <br />Durango, CO 81301 <br />RE: Clarification of the location of stabilization activities of the 14 Level Portal of the <br />Camp Bird Mine (Permit No. M- 1982 -090) L H N } C R-iN i c t o aJ 1 R — 4-- <br />Dear Mr. Oswald, <br />On behalf of Camp Bird Colorado, Inc. (CBCI), Reardon Steel LLC (RSL) is providing the <br />Division of Reclamation, Mining and Safety (DRMS) with this letter to clarify the location of the <br />permit boundary relative to stabilization activities at the 14 Level portal within the Camp Bird <br />Mine 112 permit (Permit No. M -1982 -090). On August 13, 2012, CBCI submitted a Technical <br />Revision (TR) to the 112 permit which indicated that some of the portal stabilization work may <br />be up to 50 feet outside of the permit boundary. Upon further analysis of the portal area, CBCI <br />has determined that the portal stabilization work can be completed without crossing outside of <br />the permit boundary. <br />Also, for clarification purposes, CBCI erroneously indicated in the TR that DRMS would allow <br />CBCI to conduct temporary disturbance outside of the permit boundary without applying for an <br />amendment to the 112 permit. Rather, CBCI understands that DRMS will allow the portal <br />stabilization work without adjusting the reclamation bond for that specific activity. CBCI <br />understands and agrees with DRMS' rationale, because backfill, stabilization, and re- vegetation <br />of the slope above the portal are all considered reclamation relative to the present condition. <br />If you have any questions, concerns, or clarification, please feel free to call or email at your <br />convenience. <br />Sincerely; <br />Mike Thompson <br />Principal/Reardon Steel LLC <br />Ec: Scott Butters, President of Camp Bird Colorado, Inc. <br />John Bryan, CEO of Caldera Mineral Resources, LLC <br />Page 1 of 1 <br />August 28, 2012 <br />