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~endrlcks Mining Co. <br />Caribou. Colorado <br />November 11, 1995 ~~~~ C~`~0~~'~`f~ ~~¢ ~~,~'~' <br />Barbara Chiappone RFf;F1VEn <br />Division of Minerals and Geology ~"~ "'' <br />1313 Sherman Street ,Room 215 NOV 2 4 1995 <br />Denver, Colorado 80203 <br />Dlvlsion of ininarais & Geology <br />Reference: Permit # M-77-410 Cross Mine <br />Annual Report Summary <br />Dear Barbara: <br />This is a summary of activity at the Cross Mine over the past year. <br />The Cross Gold Mine operation was closed between November 1994 and June <br />1995. The facilities and underground workings were kept open under a care :tnd <br />maintenance program only. Negotiations took place during this period between <br />Hendricks Mining Co. and Echo Bay Mines toward an exploration agreement. In <br />May of 1995 a "Letter Agreement" was signed between the two companies.114r. <br />Fred Saunders senior geologist from Echo Bay's Reno, Nevada office is in chfrrge of <br />the project for Echo Bay. The onsite project geologist is Mr. Brian Alers from <br />Nederland, Colo. who previously worked for Homestake Mining and Inco. I remain <br />as the general manager for the project. We have two additional geologists on site <br />who log core samples, split core samples and assist with mapping and field work. <br />Core drilling is under contract to Norea Drilling Co. of Porcupine, Ontario Canada. <br />A crew of two drillers runs the Norea Drill. Surface core drilling will stop for the <br />season on November 16, 1995 and is expected to resume in May of 1996. One <br />geologist and myself will be employed full-time at the site during the winter months <br />to provide care and maintenance of the facilities and compile data from this years <br />exploration programs. <br />During the operating season between July 1995 and November 1995 a total of 9 core <br />holes were drilled. Two from underground on the tunnel level totaling 1,026' and <br />seven surface holes totaling 10,078'. The surface drill sites were on existing d-rmps or <br />very near existing roadways. The sites were 20' X 20'. Reclamation has been <br />completed on three sites to-date and the final four sites depending on winter <br />weather will be fully reclaimed by July Ol, 1996. A $2,000 cash bond was posited <br />with the Division in September to cover this small site disturbance. Extreme care <br />was practiced by the drill crews to catch cuttings and place poly-propalene rags in <br />the settling traps. Trash at the drill sites was collected on a daily basis and the sites <br />were maintained in a neat and clean manor. <br />The geologic team also excavated two 400' long X 3' wide X 2' deep trenches on <br />the north-center slope of Caribou Hill. The trenches were carefully mapped and <br />sampled and immediately tilled back-in. Final reclamation of this small disturbance <br />area will be completed by July Ol, 1996. The remaining work programs consisted of <br />Mailing Address: Post Ottice Box 653-Caribou • Nederland. Colorado 80466-Oti53 <br />Mine 303-258-3806 Fax q 303-258-0402 <br />