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~~~ Annual Report -Construction Materials Operation RECEIVED Yule Quarry au~ t s toot Permit Number M-1999-058 Sierra Minerals Corporation -August 2001 Division of Minerals and Geology (a) Reclamation Accomalished to Date: Sierra Minerals Corporation (Sierra) performed no reclamation activities within the Affected Area to date and during the preceding year. Lb) New Disturbances Anticiaated Dunne the Upcomine Year: Sierra anticipates the dumping of no more than 10,000 tons of waste rock on the waste pile during the coming year. This dumping will occur in the more southern aeeas of the waste pile. The Colorado Division of Minerals and Geology is planning to use bond money posted by the prior operator, Colorado Yule Mazble Company (CYMC), to repay off-site damage caused by CYMC during its operation. This damage is in an area at the northem end of the waste pile. Sierra has committed to no dumping of waste blocks of marble on the waste pile in areas that might impact the northem end ofthe waste pile until the damage is repaired. The sediment pond was also damaged by CYMC's activities. Sierra committed to no dumping of saw cutting fines on the waste pile until the sediment pond is functional. Sierra reestablished the integrity of the sediment pond in June of 2001 and subsequently commenced dumping fines on the waste pile. On July 3, 2003, Bob Oswald of the Division of Minerals and Geology inspected the site in response to a complaint by a neighboring landowner. A copy of his inspection report is attached. Sierra will perform the corrective action as recommended in the report before September 30, 2001. (c) Reclamation to be Performed io the Corrine Year: Sierra plans no reclamation activities during the coming yeaz. During the spring and summer of2002, Sierra may establish a test plot >;o detemtine the peed for topsoil in areas that are platmed for revegetation in the future. A sample of fine waste dump material was collected in July of 2001. This sample will be sent to a soils testing laboratory for analysis in anticipation of obtaining a recommendation for soil additives that might allow revegetation of the waste dump without the need for importing large amounts of topsoil. fd) Sufficiency of Value of Financial Warrantee: There has been no significant surface disturbance during the year and the reclamation plan has not changed. Therefore the fmancial warrantee of $40,258 should not need adjustment. Sierra has funded the Financial Warrantee with a Reclamation Bond. Sierra has paid its premium for the following yeaz.