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5. On April 16, 2013, Catalix filed a Notice of Intent to Conduct <br />Prospecting Operations. <br />CONCLUSIONS OF LAW <br />6. The Board has jurisdiction over this matter pursuant to the Colorado <br />Mined Land Reclamation Act, Article 32.5 of Title 34, C.R.S. (2012). <br />7. The six holes constitute boreholes. Drilling boreholes constitutes <br />"prospecting," as defined by section 34 -32- 103(12), C.R.S. <br />8. Catalix engaged in prospecting without first obtaining a Notice of <br />Intent to Conduct Prospecting Operations ( "NOI "), in violation of section 34 -32 -113, <br />C.R.S. <br />9. Pursuant to section 34 -32- 123(1), C.R.S., the Board may issue a cease <br />and desist order if it determines that a prospector operates without filing a NOI. <br />10. Pursuant to section 34 -32- 123(3), C.R.S., the Board may impose a <br />civil penalty of not less than fifty dollars nor more than two hundred dollars per <br />day of each day of violation. The Board may impose a civil penalty against the <br />Catalix based on 33 days of violation at $50 to $200 per day for a civil penalty of <br />$1,650 to $6,600. <br />ORDER <br />Based on the foregoing findings of fact and conclusions of law, the Board <br />hereby finds Catalix in violation of section 34- 32- 113,C.R.S. for prospecting without <br />obtaining a Notice of Intent to Conduct Prospecting Operations. <br />Catalix shall CEASE AND DESIST any further prospecting at the proposed <br />Precious Mine site. <br />The Board Orders the following CORRECTIVE ACTION: Catalix shall, <br />within ten (10) days from the effective date of this order, submit to the Division a <br />complete Notice of Intent to Conduct Prospecting Operations for the proposed <br />Precious Mine site. <br />The Board imposes against the Operator a CIVIL PENALTY for 33 days of <br />violation at $200 per day for a total civil penalty of $6,600. The entire amount of <br />the civil penalty is suspended if the Operator complies with the corrective action in <br />the time specified. <br />Catalix International, LLC <br />P- 2013 -008 <br />PV- 2013 -004 <br />2 <br />