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COLORADO DIVISION OF MINERALS AND GEOLOGY <br />ANNUAL REPORT FOR <br />NELSON MINING RESOURCE <br />M-2005-059 <br />ASPHALT SPECIALTIES CO., INC. <br />MARCH 1,2006 TO MARCH 1, 2007 <br />-a°'-~-+~ n°~ <br />1. TOTAL ACRES IN PERMIT AREA: 73 <br />FED ~ 1207 <br />2. TOTAL PERMITTED MINEABLE ACRES: 66 C: :: , ^, :c.~,naiion, <br />b~Li~n~ ar,~ y-'~;y <br />3. CURRENT TOTAL ACRES DISTURBED: APPROX. 19.0 <br />4. TOTAL ACRES MINED DURING REPORT YEAR: APPROX. 15.0 <br />5. CURRENT TOTAL ACRES IN VARIOUS STAGES OF RECLAMATION: <br />APPROX. 0 <br />6. TOTAL ACRES RECLAIMED DURING REPORT YEAR: NONE <br />7. APPROXIMATE ACREAGE TO BE MINED 1N NEXT REPORT YEAR: 8.0 <br />8. APPROXIMATE ACREAGE TO BE RECLAIMED IN NEXT REPORT YEAR: <br />NONE <br />This operation only began activities in August of 2006 with the removal and stockpiling <br />of overburden for the gravel plant site. The gravel plant was moved in from another site, <br />along with the preparation and installation of the scalehouse/office at the entrance to the <br />site. Not only was overburden removed from the plant site, but also the plant site, plus <br />about 3 more acres, was taken down a further 6 ft. into sand and gravel and that material <br />was stockpiled for later processing. The plant site and stockpiles are located <br />approximately 8 $. below the natural grade of the land, but above the groundwater table. <br />Actual processing/production from the site did not begin until November 2006. A total of <br />approximately 15 acres have been mined on the site. <br />No reclamation, other than stockpiling of overburden, has occurred on the site, and <br />backfilling will not occur for another few years. <br />Mining to the full depth of the deposit (--30 ft.) will occur on approximately 8 acres <br />during the next report year. <br />Sufficiency of Y'alue of Financial Warrant) <br />The permittee holds a Financial Warranty for the permit through Western Surety <br />Company in the full amount of $184,814.00, a figure sufficient to achieve all reclamation <br />requirements under the current permit. <br />A check in the amount of $688.00 is being submitted with this report to cover the Annual <br />Fee required to maintain this permit in good standing. <br />