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RECEIVE® <br />OCT 2 22003 <br />BEFORE THE MINED LAND RECLAMATION BOARD Oivisian of Minerals and Geology <br />STATE OF COLORADO <br />FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER <br />IN THE MATTER OF THE RECONSIDERATION OF THE APPROVAL OF THE 110(2) <br />PERMIT APPLICATION OF MIDAS MINING CO., INC., FILE NO. M-2001-063 <br />THIS MATTER came before the Mined Land Reclamation Board ("Board") on <br />September 23, 2003, in Denver, Colorado for a hearing to reconsider the Limited Impact <br />Operation Section 110(2) permit application of Midas Mining Co., Inc. ("Applicant"), in <br />accordance with C.R.S. 34-32-117. Wayne R. Giesy appeared by teleconference on behalf <br />of the Applicant. Harry Posey appeared on behalf of the Division of Minerals and Geology <br />("Division"). <br />The Board, having considered the parties' presentations and having been otherwise fully <br />informed of the facts in this matter, hereby enters the following findings of fact, conclusions of <br />law and order: <br />1. The Applicant applied for a permit to reopen an underground mine known as the Ophir <br />Lode site located in Sec. 20, T43N, R6W, 10`h P.M., Hinsdale County, Colorado. <br />2. The Division approved this application on January 1, 2002. The Applicant failed to <br />provide a financial warranty within one year of approval because Hinsdale County <br />approvals had not been completed within that time period and the Applicant did not want <br />to provide a financial warranty until all local approvals had been obtained. The Hinsdale <br />County Board of Commissioners on Mazch 19, 2003 issued the Applicant a Special Use <br />Permit to operate the mine. The Applicant submitted a bond to the Division, which the <br />Division accepted on May 2, 2003. On August 6, 2003, the Division inspected the site and <br />determined it to be in the same condition as observed during a 2001 pre-operation <br />