2012-10-19_REVISION - P2011010

• Permit No: P2011010
• IBM Index Class Name: Revision
• Doc Date: 10/19/2012
• Doc Name: Modification Approved, Notice of Bond Increase
• From: DRMS
• To: Rio Grande Silver
• Type & Sequence: MD2
• Media Type: D
• Archive: No

DIVISION OF RECLAMATION, MINING AND SAFETY
Department of Natural Resources
1313 Sherman St., Room 215
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
October 19, 2012
STATE OF COLORADO
COLORADO
DIVISION OF
RECLAMATION
MINING
SAFETY
John W. Hickenlooper
Governor
Randy McClure Mike King
Rio Grande Silver, Inc. Executive Director
PO Box 610 Loretta E. Pifieda
Creede, CO 81130 Director
Re: Equity Exploration Project, NOI P-2011-010, Modification MD -2, Approved, and Notice of
Bond Increase.
Dear Mr. McClure,
The Division has reviewed the materials submitted for the NOI modification named above, and finds that
it meets all requirements and is adequate for approval. The Division a oved the modification on
October 18, 2012. The modification includes: extending underground exploration drifts, additional
underground drilling stations, addition of surface affected area for disposal of waste rock, implementation
of onsite "barrel testing" of waste rock, and continued water sampling of West Willow Creek upstream
and downstream.
The project now includes additional reclamation costs that are associated with this modification, and the
required reclamation bond amount has been updated to include those costs. The current total required
bond amount is $18,361.00, which was accepted by the Division in 2011. It was posted in the form of a
statewide prospecting bond (Safeco corporate surety no. 6575235). The additional bond amount that must
be provided for this modification is $9,831, bringing the new total required bond amount to $28,192.00.
Please see the costs shown in the enclosed packet, which details the $9,831.00 of additional bonding that
must be submitted, and notify me promptly if you notice any errors or omissions.
The posted statewide prospecting bond described above also covers the reclamation obligations of all
other active Prospect Notices for Rio Grande Silver. It is posted in the total amount is $269,318.00.
Together, the bonded liabilities of all of the active Prospect Notices obligates $241,490.00 of the
statewide bond. The additional bond ($9,831.00) associated with this modification brings the total
obligated amount of the statewide bond to $251,321.00, indicating that the statewide bond still contains
sufficient funds to cover this modification. I will notify Barbara Coria, the Division's bond specialist, of
this change.
Since the bond is already posted and the Division has granted its approval for NOI modification MD -2,
continued proMecting activi1y at the E ui Ex loration Project rna commence.
Please be reminded that all other conditions and requirements of the NOI, including the filing of annual
reports and payment of annual fees, and filing of drill hole permanent abandonment reports, remain in full
force and effect.
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Office of Office of
Mined Land Reclamation Denver - Grand junction - Durango Active and Inactive Mines