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Peak Project Management, LLC <br />34115 County Road 20.8 Trinidad, CO 81082 <br />Telephone: (719) 846.4975 Fax: (719) 846.4930 Cell: (719) 859-0111 <br />ronthompson~wwildblue.net <br />July 3, 2007 <br />Mr. Kent Gorham <br />Colorado Division of Minerals & Geology <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />``''~O <br />~v <br />G~ oo~ <br />~~ o~~eaSale~y <br />O\J`s`o~\~9a~ <br />Re: New Elk Mine: Pemrit No. C-81-012 <br />Quarterly Waste Bank Inspections <br />Annual Sediment Pond Inspection Reports <br />Dear Mr. Gorham: <br />Enclosed are copies of the First Quarter 2007 Quarterly Waste Bank Inspection Reports <br />conducted to comply with CDMR Rule 4.09.1(11) and 4.102(2) and copies of the annual <br />2007 Sedimentation Pond Inspections to comply with Rule 4.05.9{15). The operator at <br />New Elk has been dewatering Pond 8 during the second quarter to facilitate a more <br />accurate sediment level survey later in 2007. <br />Please contact me if you have any questions. <br />Sincerely, <br />~~~~ <br />