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STATE OF COLORADO <br />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 />July 7, 2009 r/ <br />NON CONFIDENTIAL <br />k tZ-y I/ <br />j COLORADO <br />C/ DIVISION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />Mr. Stephen Hilgers <br />Cats-International <br />6499 Plateau Drive <br />Englewood, CO 80111 <br />LIZ <br />RE. Santiago Mine, Receipt of Notice of Intent, File No. P-2009-005 <br />Dear Mr. Hilgers: <br />The Colorado Division of Reclamation, Mining, and Safety (DRMS) has received your Notice of Intent to <br />Conduct Prospecting (NOI). Our initial review indicates that it is incomplete. Please address the following <br />items at your earliest convenience bearing in mind that if you have not addressed these items within sixty <br />days of the date of this letter the DRMS may terminate this NOI (rule 5.1.3 of the Mineral Rules and <br />Regulations of the Mined Land Reclamation Board). <br />1. Please find enclosed the signature pages from the NOI forms you have provided. Sign and initial the <br />pages in blue ink and return them to the DRMS. <br />2. The DRMS has estimated the cost to plug and abandon the proposed core holes at $14,009.00 (see <br />enclosed estimating spreadsheets). Reclamation bond in this amount must be posted and accepted in writing <br />by DRMS prior to drilling the holes. Also, please commit to sealing the entire length of the holes using <br />tremied cement grout or high quality sodium bentonite gel if water is encountered during drilling, and to <br />install the sealing material immediately upon completion of drilling. If underground voids, e.g. mine <br />workings, are drilled into, drilling must cease and the DRMS must be contacted to confer on plugging of the <br />hole. Please provide a commitment to do so. <br />3. The NOI states that drill cuttings will be absorbed by talus. In accordance with Rule 5.5.2(c) of the <br />Mineral Rules and Regulations, please further commit that any cuttings that might remain at the surface will <br />be spread to no thicker than one-half inch. <br />4. There is some discussion of milling in the NOI. Please affirm that no milling is proposed at this time and <br />that no milling will occur under this NOI. <br />5. Is the proposed access gate on Forest Service managed land? Will the gate remain after prospecting, or <br />will it be removed. If the gate is to be removed, provide dimensions and descriptions of the gate and support <br />posts so that removal costs can be estimated to establish the amount of required bond. <br />6. It is stated in the NOI that the mill will remain at the site as a point of historical interest. Until agreements <br />are secured and accepted by DRMS showing that the historic site will be maintained in perpetuity, and <br />demonstrating that leaving the building will conform with Clear Creek County Codes, DRMS will require <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines