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MINED LAND RECLAMATION BOARD 110(2} ANNUAL REPORT <br />For Season 2006 <br />GLACIER PEAK MINING <br />PERMIT NO. M-2003-030 <br />Prepared: 17 Apr 2007 <br />Submitted: 20 May 2007 <br />Summary: <br />Glacier Peak Mining LLC operated mechanized equipment on the Smoky Hawk and Elk Horn <br />mining claims from 1 June through 7 July and on the Blue Smoky and Wolf Fang claims from 17 <br />through 27 July in Teller County, CO to produce amazonite, smoky quartz, fluorite and other <br />related pegmatite minerals. John Deere 992 and 690 track hoes were used along with appropriate <br />air compressor for chipping hammers and a water buffalo. Production occurred predominately at <br />four sites. Test pits were completed at four additional sites. Follow-on mineral removal, <br />prospecting, reclamation, and claim upkeep continued on all Glacier Peak claims through 9 <br />October 2006. <br />Permit M-2003-030 Chanees 2006: <br />Glacier Peak Mining submitted an amendment to increase total acreage to 9.97 acres. The <br />amendment was approved 3 May 2006. An Environmental Assessment was finalized and <br />approved in June 2006 by the U.S.F.S. for "Dorris Mining" and includes aU Glacier Peak Mining <br />claims, Colorado Calumet Co. Inc. claims and Crystaljack mining claims. An updated plan of <br />operations was filed with and approved by the U.S.F.S. on 16 Aug 06. Bonds were increased to <br />$20,696 with the Division of Reclamation Mining and Safety and are held by the state of <br />Colorado. Bonds for roads were established and paid to the U.S.F.S for $11,190. Additionally, a <br />$900 bond is also maintained by the U.S.F.S. <br />Map Denicting Operations: <br />Attached aze maps including a detail map of the five claims covered under this permit and an <br />index map showing all Glacier Peak claims including claims filed in November 2006 (in yellow). <br />The seventeen proposed production excavation sites approved under this permit are shown by the <br />letters A through Q and ace indicated with rectangulaz boxes. An orange area within a <br />rectangular box indicates an open excavation where work will resume this season (2007). <br />Presently, there is one open excavation, Site B, on the Smoky Hawk. A rectangular box which is <br />shaded green shows a completed production excavation site and one which has been reclaimed <br />for at least a yeaz and has 80 percent growth or better. Blue shaded boxes indicate areas <br />reclaimed for less than one yeaz or with less than 80 percent growth. <br />The maps also include all the proposed and active exploratory prospect sites covered under <br />Colorado prospecting permit P-2003-014. These will be dropped in the future since these aze <br />now covered under a separate report for prospecting. <br />