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~, <br />Mr. Berhan Keffelew <br />November 5, 2004 <br />Page 2 <br />The adjusted disturbed acreage covered by the state wide financial warranty is now 46.87 acres. <br />This leaves a balance of 53.13 acres available for future exploration activities without requiring <br />any further modifications to the financial warranty. Anticipated exploration disturbance in 2005 <br />is approximately 10 acres. <br />In Mazch 2004, exploration activities permitted within the Amendment 8 boundary were <br />transferred to Permit No. P-99-015. This was done to consolidate all exploration activities <br />within the Cripple Creek Mining District into one permit. The 2004 Annual Exploration Report <br />and maps will reflect this consolidation. <br />The holes drilled aze generally dry. If ground water is encountered, the drill holes are filled with <br />chip bentonite from bottom to top. Dry holes aze capped using a plastic hole plug, which is <br />inserted to a depth of about 10 feet and backfilled to the surface with cuttings. <br />If you have any questions or desire additional information, please contact me at (719) 689-4058. <br />Sincerely, <br />~~~~2' <br />eff Campbell <br />Senior Environmental Coordinator <br />Enclosures (2) <br />cc: Phil Barnes, Manager, Environmental Resources <br />