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<br />First Bentonite Co. <br />215 Teller <br />Salida, Co. 81201 <br />P.L. Wedige, co-owner/manager <br />(719)539-4693 <br />Narrative: 1998/1999 activity <br />%(/~ <br />RE~E~V~D <br />~ 8 f99~ <br />Dihsion otMinerab & Geob9Y <br />]998 was a reasonably active production year. The highlight of the year was the <br />re-issuing of our Conditional Use Permit for the lifetime of the mine. We got the permit <br />after working May 1998 thru February 1999. <br />In July of 1998, we had a cloudburst go thru the LBC Pit doing considerable <br />damage to our culverts, ditches, retainers and stockpiles. We have compleyely recovered <br />from this damage and have, in fact, made some improvements in our system. We were <br />able to operate during this entire time and never had to sut down! <br />We closed the northern-most road into the pits, loosened the soil and planted $300 <br />worth of grass seed in this roadway. The cattle that graze in the Kerr Gulch area really <br />enjoyed the grass and our thoughtfulness in planting it for them. It is still growing some, <br />however, and should make cover. <br />The outlook for 1999 was fair to good and has lived up to that evaluation. We aze <br />stockpiling smaller piles and have been able to get rid of most of the stockpile of <br />BentonitelCapstone. It has made good roadbase with rolling and the addition of small <br />gravels. <br />Bentonite for the balance of 1999 and the spring of 2000 will be supplied from our <br />present pit with small additional movement south on LBC claims. <br />Sincer~l9y <br />c3-- ~~ <br />P. L. Wedige <br />o~ ~ a~~ ~~ <br />