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EJA I I <br /> Environmental <br /> Alternatives, 4.. DEC 2 2 2015 <br /> OF Inc. vQ <br /> DIVISION OF RECLAMATION <br /> �gccRE�I1P O`' `� Mit4ENG MID SAFETY <br /> December 17, 2015 <br /> Tim Cazier <br /> Colorado Division of Reclamation, Mining and Safety <br /> 1313 Sherman Street, Room 215 <br /> Denver, Colorado 80203 <br /> RE: Zephyr Gold USA Ltd (Zephry) <br /> Dawson Gold Project P-2013-002 <br /> Response to Notice of Deficiencies for NOI Modification, Revision No. MD-1 <br /> Dear Mr. Cazier, <br /> On November 24, 2015, Environmental Alternatives Inc. (EAI) received your Notice of <br /> Deficiencies for NOI Modification, Revision No. MD-1. Please accept this correspondence <br /> as response to deficiency items. <br /> Application Item No. III.12.B — Zephry requests a phased exploration approach in <br /> anticipation of needing further resources verification and mine development <br /> geotechnical data research. Zephry proposes drilling 60 boreholes to be drilled in 20 <br /> borehole phases over the next three (3) years. Bond would be posted for 20 <br /> boreholes. Boreholes will be appropriately closed and abandoned in compliance <br /> with the Division Rules. The bond will remain posted. The Division will be notified of <br /> the location of the next set of 20 boreholes. This notification-drilling-close/abandon <br /> cycle would transpire three (3) times over the next three (3) years. <br /> Application Item No. III 12.B and III 12.K. — Two (2) boreholes are anticipated to a <br /> depth of 1,000 feet. Eighteen (18) boreholes will be to a maximum depth of 400 feet. <br /> The Fremont County Board of County Commissioner received notification that <br /> included the NOI modification application and cover letter November 4, 2015 via <br /> email. <br /> In addition to the deficiency items response, please accept the following exploration <br /> clarification. Boreholes will originate from Pad #5, a new pad delineated on Figure 1. This <br /> will require approximately 600 feet of temporary access road, delineated in green on Figure <br /> 1. Additional 400 feet of temporary access road (delineated in yellow on Figure 1) may be <br /> constructed to new Pad #4 in the event preliminary field borehole results indicate further <br /> data is needed. <br /> Cnviirronmentall Alkernadi\V/ess IInc„ <br /> 1107'Main Street, Canon City, CO 81212 <br /> www.envalternatives.com •e-mail: eai@bresnan.net <br /> Phone: 719-275-8951 • Fax: 719-275-1715 <br />