2023-03-16_PERMIT FILE - P2022019

• Permit No: P2022019
• IBM Index Class Name: Permit File
• Doc Date: 3/16/2023
• Doc Name: Reclamation Cost Estimate
• From: SRK
• To: DRMS
• Email Name: DMC
• Email Name: THM
• Media Type: D
• Archive: No

srk Consulting(U.S.),Inc. [phone] office
125 m 1250 Laoille Highway,Suite 520 [phone] fax
Elko,NV 89801 [e-mail]
United States www.srk.com
RECEIVED
Mr.Vincent Beresford
Geologist MAR 16 2023
Bureau of Land Management
Uncompahgre Field Office DIVISION OF RECLAMATION
2465 S. Townsend Ave MINING AND SAFETY Project: USPR001303
Montrose, CO 81401 March 14, 2023
Subject Response to request for further information regarding the Sunrise Minerals Notice of Intent to Conduct
Prospecting Operations for the REX Project in Montrose County, Colorado BLM Case File Number
C00080843 and NOI#P-2022-019
Dear Mr. Beresford,
On behalf of Sunrise Minerals Inc. (Sunrise), SRK Consulting (U.S.), Inc. (SRK)submits this response
to the request for further information by the U.S. Department of the Interior Bureau of Land
Management Uncompahgre Field office(BLM)received via email January 5, 2023, regarding the
Notice of Intent to Conduct Prospecting Operations(Notice)for the REX Project located in Montrose
County Colorado.This response and the attachments will be provided to the Colorado Division of
Reclamation, Mining and Safetyl(DRMS).
Comment 1:A reclamation cost estimate is required in order for your Notices to be considered
complete(43 CFR§3809.301(b)(4). Please provide this estimate in accordance with the
requirements at 43 CFR§3809.552.
Response: A reclamation cost estimate has been calculated using the Nevada Standardized
Reclamation Cost Estimator(SRCE) 1.4.1 build 17b.The SRCE is an estimation tool for the calculation
of bond amounts required to reclaim land that is no longer used for exploration, mining, or processing
ore. Cost inputs for the SRCE model are provided from the Nevada Division of Environmental
Protection (NDEP)annual Cost Data File updated annually by the BLM and the NDEP. Labor costs are
based on Nevada Davis Bacon wage rates, and equipment and supply costs are based on regional
rates. The Nevada Davis Bacon wage rates are slightly higher than the Davis Bacon Wage rates for
Montrose County Colorado, which should make the estimate more conservative.The SRCE costs are
predicated on the reclamation being completed by a third party under agency direction.The cost data
information is included on pages 13-56 of the cost estimate.
The reclamation cost for the REX project is estimated as$19,462 which includes direct costs (drill hole
abandonment, exploration road and pad reclamation, etc.)and indirect costs for insurance(1.5%of
labor costs), contractor profit(10%), contract administration (10%)and government indirect costs(21%
of contract administration).These costs are described at the bottom of page 4 on the Cost Summary
worksheet. Costs for mobilization/demobilization of equipment and for the removal of sediment control
measures(straw wattles, culvert, liner, etc.)was also included and can be found on the Cost Summary
worksheet(page 3)Section A and Section D of the cost estimate.
SRK CONSULTING(U.S.),INC. ■ MARCH 14,2023 1