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United States Department of the Interior <br />In Reply Refer To: <br />1990 (COC -077472, SSC) <br />BUREAU OF LAND MANAGEMENT <br />Royal Gorge Field Office <br />3028 East Main Street <br />Canon City, Colorado 81212 <br />Mr. David Felderhof <br />Zephyr Gold USA Ltd. <br />1959 Upper Water St. <br />Halifax, Nova Scotia B3J 3N2 <br />Canada <br />Dear Mr. Felderhof: <br />MAR 31 2016 <br />APR t ?O16 <br />DMSI0r1(' RECLAMATION <br />MING MI) SAP! <br />On March 14, 2015, BLM received a modification to your existing notice regarding proposed exploration <br />activities in T. 19 S., R. 71 W., section 14 in Fremont County, CO. This modification has been reviewed <br />and, in accordance with 43 CFR 3809, BLM is responding within the regulatory required timeframe of 15 <br />days. <br />Based on the review of data that is currently available, it does not appear that the exploration operations will <br />pose a risk to cultural resources in the area. Previously, it was determined that neither known populations nor <br />potential habitat for threatened or endangered species exist in the area of these exploration operations. <br />Regulations outlined in 43 CFR 3809.420 provide further details on performance standards that apply to your <br />notice operation, to include those related to cultural resources and threatened or endangered species. <br />After fully reviewing your requested modification, it has been determined that your notice is complete. The <br />modified notice will expire two years from the date of this letter. <br />In accordance with 43 CFR 3809.312(c), a financial guarantee is required. The BLM has reviewed the <br />current bond in light of the proposed modification, in the context of the existing operations. The <br />modification proposes a new exploration site (west of pad #1) in lieu of pad #5, and its associated access. <br />As a result, the current reclamation bond of $51,275 held by DRMS is still considered to be adequate. If <br />mining activities are proposed as a result of this exploration project (or any other conditions are met under <br />43 CFR 3809.11), then BLM needs to be notified and compliance with 43 CFR 3809.401 will be required. <br />The operator should also coordinate with the Colorado Division of Reclamation, Mining and Safety, as <br />applicable. <br />Please contact Stephanie Carter at 719-269-8551, if you have any questions. <br />