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COLORADO DIVISION OF MINERALS AND GEOLOGY <br />ANNUAL REPORT FOR <br />NELSON MINING RESOURCE <br />M-2005-089 <br />ASPHALT SPECIALTIES CO., INC. <br />MARCH 1, 2015 TO MARCH 1, 2016 <br />1. TOTAL ACRES IN PERMIT AREA: 73.0 <br />2. TOTAL PERMITTED MINEABLE ACRES: 66.0 <br />3. CURRENT TOTAL ACRES DISTURBED: APPROX. 33.0 <br />4. TOTAL ACRES MINED DURING REPORT YEAR: 1.0 <br />5. CURRENT TOTAL ACRES IN VARIOUS STAGES OF RECLAMATION: 0 <br />6. TOTAL ACRES RECLAIMED DURING REPORT YEAR: 0 <br />7. APPROXIMATE ACREAGE TO BE MINED IN NEXT REPORT YEAR: —2.0 <br />8. APPROXIMATE ACREAGE TO BE RECLAIMED IN NEXT REPORT YEAR: <br />—2.0 <br />All mining during the reporting year occurred in an area that had been disturbed <br />previously (overburden removed and upper zoned mined) so no new areas were opened - <br />up or disturbed during the reporting year. A total of approximately 33 acres have been <br />mined for sand and gravel and/or disturbed with the removal of overburden (O.B.) on the <br />site. <br />As with weed control on the OB stockpiles in the previous two years, we have allowed <br />the landowner's cattle to graze the stockpiles during this reporting period. The cattle have <br />once again done a very efficient job in keeping the stockpiles very weed -free while <br />compacting the OB to further reduce erosion. With using the cattle for weed control on <br />these OB stockpiles, the root mass of the weeds stays intact and "holds together" the soil. <br />It has been a very successful solution for weed control on these stockpiles. Backfilling of <br />a portion of the pit area may occur during the next reporting period. <br />Mining should resume in 2016 during the construction season with another <br />approximately 2 acres being mined in the central north area. That area has already been <br />disturbed due to OB removal and some mining. We utilize a completely mobile/portable <br />gravel mining plant at this and our other mining sites. <br />The annual report map accompanies this report and DRMS form. <br />Sufficiency of Value of Financial Warranty <br />The permittee holds a Financial Warranty for the permit through Great American <br />Insurance Company in the full amount of $1,097,165.51, a figure sufficient to achieve the <br />