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September 27, 2012 <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />State of Colorado <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Attn: . Russell Means <br />Re: <br />Dear Mr. Means: <br />Sincerely, <br />Nuve co, <br />By: EMSU, LLC, Its Manager <br />By: Paul G. Szilagyi, Its Manager <br />NiNEMCO, LLC <br />VIA CERTIFIED MAIL 7011 2970 0001 8848 7098 <br />Permit 4-1978- 222 -UG <br />Monogram Mines <br />Protection Plan and Permit Status Review <br />cc: Messrs. Burnett, Cavanaugh, Eisel and Means (via emails) <br />650 Linden Ave, Boulder, CO 80304 <br />nuvemco(a comcast.net; 303 443 -9086 office; 904 216 -1041 fax <br />R ass °�4�rr' <br />Ci : ,v8E <br />E2ZO <br />Civi ,cR a o, <br />=motion, <br />In response to your letter of September 5, 2012, with respect to the referenced Monogram Mines <br />permit, Nuvemco has determined that the Monogram Mines are not eligible for Temporary <br />Cessation. Specifically, we have had personnel working at the site conducting developmental <br />drilling to guide future mining as reported in the most recent Annual Report of March 2012. <br />Further, as specifically referenced as an indication against Temporary Cessation, the mining <br />operation has not commenced. The primary reason for this is the absence of an economic buy <br />schedule from an uranium and vanadium mill, inclusive of both the current market conditions for <br />these minerals and the delay incurred by the State of Colorado in licensing the proposed Pion <br />Ridge Mill. <br />With respect to the Environmental Protection Plan ( "EPP "), Nuvemco understands its EPP as filed <br />to be satisfactory to DRMS, with the caveat that a ore storage pad remains to be constructed. As <br />we have discussed, the final site of this ore storage pad is to be determined after 1) an economic <br />buy schedule is obtained and 2) a final site can be determined (which could be the original site as <br />filed) that maximizes the use of information garnered from developmental drilling to ensure the <br />best mine productivity, highest levels of worker safety and minimizes surface and environmental <br />disturbances. <br />We understand DRMS's requirements pursuant to the Rules and Regulations and look forward to <br />the upcoming DRMS inspections. As always, we would be happy to discuss this permit at your <br />convenience. <br />