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December 18, 2012 <br />To: Marcia Talvitie <br />From: Susan Burgmaier � 4-K <br />Re: New Horizon Mine (Permit No. C- 1981 -008) <br />Phase I/III Bond Release Request (SL -13) <br />Reclamation Cost Estimate <br />I have completed a revised cost estimate for remaining reclamation liability following the <br />proposed Phase I and Phase III Bond Release (SL -13) at the New Horizon Mine. After the <br />proposed release with SL -13, the estimated cost for reclamation is $5,113,540.41. <br />It is my understanding that the Division will be approving Phase I release on 100.159 acres of <br />regraded pit area and Phase III release on 7.215 acres of county road reclamation. This cost <br />estimate is based on that approval. <br />Since the reclamation cost had not been calculated since June of 2009, I updated the entire <br />reclamation cost estimate. Aside from the typical increases in equipment operating costs, which <br />are substantial since it has been three years since the last estimate, there were a few major <br />changes to the estimated reclamation costs. Specifically — <br />• Earthmoving volumes increased substantially, since the pit is now at maximum length <br />for the permit term. <br />• Revegetation costs rose due to modifications to the revegetation plan and postmining <br />land uses approved in PR6. <br />• Irrigation costs were reduced since the area to be irrigated was reduced with PR6, and <br />also costs per acre are lower than in 2009. <br />Prior to this bond release, the estimated reclamation cost for the entire site was $5,042,302.00; <br />the current estimate with SL13 is $5,113,540.00. WFC will need to post an additional $71,238.00 <br />bond. The revised reclamation cost estimate packet is attached. Should you or the operator have <br />questions or need additional information, please let me know. <br />cc: Sandy Brown, w /out enclosure <br />