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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 />January 23, 2013 <br />Mr. Stephen Hilgers <br />Santiago Mining Co., LLC <br />6499 Plateau Drive <br />Englewood, CO 80111 <br />Re: Santiago Mine, Notice of Latent (NOI) to Prospect, file P- 2012 -012 <br />Adequacy Review – Round 3 <br />Dear Mr. Hilgers: <br />Mined Land Reclamation <br />STATE OF COLORADO <br />3. GENERAL INFORMATION, Item 7F. The USFS receipt that was submitted is adequate. <br />COLORADO <br />DIVISION OF <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E Pineda <br />Director <br />DRMS has reviewed your responses received 1/21/12 that respond to our adequacy review comments. We have the <br />following comments. <br />1. GENERAL INFORMATION, Item 5. As previously requested, please provide a copy of Form 1 that has <br />all of the location information completed. The submittal does not show the quarter- quarter section. <br />2. GENERAL INFORMATION, Items 6 and 7E. As previously requested, please reconcile the apparent <br />discrepancy between private land ownership shown in Item 6, and U.S. Forest Service land management <br />shown in Item 7E. Is the land privately owned, but managed by the USFS? <br />4. PROJECT DESCRIPTION, Item 4. As previously requested, please correct the checked boxes to be <br />consistent with the remainder of the application which indicates tunnels, trenches, adits, and <br />drilling /blasting will not be part of the proposed activities. For example, the previous submittal indicated <br />adits will not be opened, but the current submittal has the box for adits checked indicating the prospect <br />will include development of adits. <br />5. OPERATION AND RECLAMATION MEASURES, Item 12A. As previously requested, please provide <br />the plant name and seeding rate information. Item 12A on Form 2 says "See attached sheet (Popovich) ", <br />but such a sheet is not attached. <br />6. FINANCIAL WARRANTY. As previously noted, the required bond (financial warranty) amount for this <br />NOI is $13,300. Rule 5.3.3(1) requires the financial warranty to be provided when the NOI is filed. <br />7. SIGNATURE REQUIREMENT. As previously requested in our letters of July 27 and December 6, <br />2012, please initial all items on page 9 of Forms 1 and 2. <br />You may not commence prospecting operations until we receive adequate responses to the above comments. <br />Also, you may not commence prospecting operations until the bond has been submitted and you have received <br />notification from DRMS that the bond has been accepted. <br />Office of Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />