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~~~z~ November O8, 1999 • • ~ Mr. Carl Mount Division of Minerals and Geology State of Colorado ,~i~E~VE~ Department otNatural Resources 1313 Sherman Street NOV 16 1999 Room 215 I~~~epiogY Denver, Colorado 80203 ,,,,,.,u~~Mi~ Reference: Annual Fee Invoice and Report Permit Number m-77-410 Dear Mr. Mount: Please find attached our check number 386 in the amount of $ 225.00 for our annual permit renewal. I have also attached a district map dated September 28, 1999, which shows in detail our Cross/Caribou project. This map shows historic mine workings and some of our previous drill hole locations. The exploration core holes shown by the yellow highlight marker, are the holes we have planned fair in our next drill program. This program is expected to commence in April of 2000. We will file a new Notice of Intent to Prospect well before this program begins. Project Summary/Report: Period November 04, 1998 through November 03, 1999 The project ceased operation on December 22, 1998 for the Christmas br~aak. At that point we had used up our exploration budgets. With gold prices remaining at recent record lows for the period through November 1999, the operations remained closed. The Cross-and Caribou Mines were under constant care and maintenance/ daily by myself. l also worked continually in the office at the Cross-Mine during this period. No core drilling or mining work occurred between December 22, 1998 and November 03, 1999. Work towards obtaining the next round of Cinancing continued throughout this period. Project geologist Bob Akright continued work on updating geologic maps and planning for the next exploration program. Educational I~xtures and tours were given to a diverse number of groups from around the world, including a number of classes from local elementary, middle and high schools, plus university students, teachers from the CMA/CSM Education Foundation and potential investor groups. The number of people who participated in this year's tour totaled 1,200. The Cross-and Caribou Mine water discharge systems were maintained a~n a daily basis as required by our NPDES permit. No violations of this permit occurred during the reporting period. Walsh Environmental Engineers and Scientists of Boulder, Colorado submit our monthly DMR reports. Construction work began at the Cross-Mine on the new Octalig water purification system by Metre-General Corp. of Westminster, Colo. This unit will be operational by June of 2000 and the Cross-Mine will be a demonstration site for the unit in the future. We continued work with the US Forest Service on closing jeep roads that were multiple spwr roads M[NE OFFICE (303) 258-3806 FACSIMILE (303) 258-0~f02 P.O. BOX 653 -CARIBOU, NEDERLAND, CO. 80466-0653.