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Peak Project Management, LLC <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />(719) 846-4975 <br />December 14, 2006 <br />Mr. Kent Gorham <br />Colorado Division of Minerals & Geology <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: Lorencito Mine: Permit No. C-96-084 <br />Quarterly Sediment Pond Certifications <br />Deaz Mr. Gorham: <br />RE~Er~E® <br />DEC 2 U 2006 <br />Division of Roclamation, <br />Mining and Safety <br />Enclosed are copies of the Thvd Quarter 2006 Sediment Pond Inspection Reports. All embankments were <br />found stable. Discharges were observed and sampled from ponds 7, 8 and 9 during the quarter. <br />Please contact me if you have any questions. <br />Sincerely, <br />~/'h <br />Ronald G. Thompson <br />Project Manager <br />MSIIA Certified -Impoundment Inspections <br />