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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 />STATE OF COLORADO <br />COLORADO <br />D I V I S I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />May 24, 2013 <br />John W. Hickenlooper <br />Governor <br />Mr. Randy McClure <br />Mike King <br />Rio Grande Silver, Inc. <br />Executive Director <br />P.O. Box 610 <br />Loretta E. Pineda <br />Director <br />Creede, CO 81130 <br />Re: Bulldog Mine, Permit Number M -1977 -215 <br />Notice of Final Determination Regarding Designation as DMO <br />Dear Mr. McClure: <br />The Division of Reclamation Mining and Safety ( "Division ") appreciated the opportunity to <br />discuss the pending designation of the Bulldog Mine as a Designated Mining Operation ( "DMO) <br />with Rio Grande Silver, Inc. ( "RGS ") on May 14, 2013. The Division, however, remains <br />convinced that the Bulldog Mine is properly designated as a DMO because the mining operations <br />that are presently permitted have the potential to expose or disturb acid- or toxic - forming <br />materials. This letter provides notice to RGS of the Division's final determination pursuant to <br />Rule 7.2.4(1). As a result of the final determination, the Division has also published notice of its <br />determination in the agenda for the Mined Land Reclamation Board's ( "Board ") June meeting. <br />A copy of the published agenda is included. <br />Within thirty days of the date of this letter, RGS must submit either a letter concurring with the <br />Division's determination pursuant to Rule 7.2.3 or file an appeal of the determination and request <br />a hearing before the Board pursuant to Rule 7.2.4(1)(b). If RGS appeals the Division's <br />designation, the procedure is outlined in Rule 7.2.4(1)(b). If, however, RGS concurs with the <br />designation, RGS must submit information to the Division as required by Rule 7.2.3. <br />If RGS has any questions regarding this letter or the DMO designation and related administrative <br />process, please contact me, Russ Means, or Bob Oswald. <br />S' ely, <br />Antho y J. Waldron <br />Minerals Program Supervisor <br />Encl. <br />Cc: Julie Murphy -AGO <br />Russ Means -GJFO <br />Bob Oswald -DFO <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />