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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />December 17, 2012 <br />Tom Hendricks <br />Calais Resources Colorado, Inc. <br />4185 Caribou Rd. <br />Nederland, CO 80466 <br />RE: Cross Gold Mine; DRMS File No. M- 1977 -410; Annual Report — 2012 <br />Dear Mr. Hendricks, <br />The Division of Reclamation, Mining and Safety (Division) received your 2012 Annual Report on <br />November 14, 2012. The Division has reviewed the report and has determined that the above referenced <br />operation should be placed into Temporary Cessation. Pursuant to Rule 1.13.2, when personnel are only <br />engaged in activities which can be described as maintenance or housekeeping and when there is no sale or <br />processing of material or movement of stockpiled material for 180 consecutive days or more, a site shall <br />be placed into Temporary Cessation. According to the 2012 Annual Report, the Cross Gold Mine has not <br />been active since April 4, 2012. Therefore, the Operator must file a Notice of Temporary Cessation with <br />the Division or otherwise demonstrate that the Cross Gold Mine does not meet the definition of <br />Temporary Cessation by January 17, 2012. <br />Pursuant to Rule 1.13.5(2), the Notice of Temporary Cessation shall include the following: <br />a) The date of cessation <br />b) The reasons for non production or cessation of the mining operation <br />c) The measures to be taken to comply with reclamation requirements and/or other activities related <br />to performance standards of Section 3.1 while the mine is in Temporary Cessation <br />d) Demonstration that the existing financial warranty is adequate to cover the reclamation liability <br />e) The Notice of Temporary Cessation must include a processing fee of $115.00 <br />If you have any questions, please call me at (303)866 -3567 x8116. <br />Sincerely, <br />ichael A. Cunnii ham <br />Environmental Protection Specialist <br />CC: Tom Kaldenbach, DRMS <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E Pineda <br />Director <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />