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Environmental Consultants, Inc. <br />May 10, 2006 <br />RRCCl1%ImD <br />MAY 12 2006 <br />Divisron of Minorals an0 Geology <br />Mr. Kent Gorham <br />Senior Environmental Protection Specialist <br />Division of Minerals and Geology <br />215 Centennial Building <br />1313 Sherman Street <br />Denver, CO 80203-2273 <br />RE: Golden Eagle Mine (Permit C-81-013) Annual Hydrology Report for 2005 <br />Dear Mr. Gorham: <br />By this letter, Basin Resources Inc. hereby submits two (2) copies of the 2005 Annual Hydrology <br />Report for the Golden Eagle Mine. With closure of the Mine, no surface disturbance or water <br />discharge activities occurred during the year. Since the project is now in Year 10 of the 10-year <br />liability period, we would like to discuss the possibility of terminating the water-monitoring <br />program. Results have shown that the hydrologic balance has stabilized and any future monitoring <br />would not provide valuable information. <br />Should you have questions or need additional information concerning the 2005 AHR, please do not <br />hesitate to call Mr. Ron Thompson or let me know. <br />Sincerely, <br />~ ~~ <br />Jerry H. Koblitz <br />Principal <br />cc Mr. Ron Thompson -Basin Resources <br />an ARCADIS company <br />5231 South Quebec Street • Greenwood Village, Colorado 80111 <br />Tel 303.850.0930 • Fax 303.72].9298 <br />www.greystone.us • www.arcadis-us.com <br />