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Mount Royale Ventures, LLC <br />9145 Sunshine Canyon Dr. <br />Boulder, CO 80302 <br />Telephone: 72D 5653448 <br />Fax: 720 565-3497 <br />August 15, 2005 <br />Mr. Jim Duplex <br />Division of Minerals and Geology <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />RE: Gold Hill Mill, 2004 Annual Report -Permit M-1994-117 <br />Dear Jim, <br />Mount Royale Ventures, LLC (MRV) has succeeded ITEC Environmental <br />Colorado, Inc. as the operator of the Gold Hill Mill (SO-3, M-1994-117, March 7, 2005). <br />There has been a significant learning curve regazding the status of, environmental <br />monitoring of and maintenance of the property under permit. Work on the property <br />during the last year consisted of clean-up and prepazation for nu~ning the mill. Many of <br />the mill's internal circuits needed extensive rehabilitation. No milling or mining <br />occurred under this permit during 2004. Pursuant to our letter dated June 10, 2005 the <br />mill will be operational by the 20a' of August, 2005. <br />MRV has endeavored to be an environmentally sensitive company. To date, over <br />450 cubic yards of gazbage and debris has been removed from the site. Over 21 tons of <br />scrap steel has been recycled, as well as over 1 ton of lead-acid batteries. Used oils, <br />solvents, etc. have been recycled and clean-up continues. During this cleanup, some re- <br />vegetation has occurred and the site appeazance is improving significantly. Areas <br />cleaned up and reclaimed are shown on the enclosed map, Some of these areas straddled <br />the permit boundary. MRV chose to err on the side of the environment and has cleaned <br />and reclaimed these areas. <br />Technical revision #6 (TR-06) was submitted and approved pending an increase <br />in bonding by $500. Per Mr. Gregg Squire, we aze submitting before and after photos of <br />these azeas in hopes of mitigating the need for additional bonding. This revision located <br />an office trailer (permitted by Boulder County) and astate-of-the-art fuel containment <br />vault neaz the mill building. Thickener vault installation approved in this revision has not <br />yet occurred and is awaiting local building permits. <br />