2008-05-12_REPORT - M2003030 (3)

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Some unauthorized digging by unknown persons occurred at Site C on a previously reclaimed area in the southwest corner of the permitted site. This area was filled, re-contoured, and reseeded. Total re-disturbance was 0.3 acre. Additionally, a prospect was opened on the south center of Site C then re-filled, re-contoured, and reseeded. A Forest Service approved gate was installed at the junction of F.S. Road 201 and the mining access road which accesses the Smoky Hawk and Elk Horn claims. Gates were installed partially to secure the area for blasting. Reclamation Accomplished to Date (Including 2007 Reclamation A total of 1.58 acres have been reclaimed since this operation began in 2003.Ofthis, Site A on the Smoky Hawk has over 80 percent growth. All other sites have excellent growth. Silt fencing on most reclaimed sites will be removed this summer. Reclamation Accomplished Durin 2~ 007: Trees and shrubs were planted at Site E and Site L on the Blue Smoky claim which was mined and reclaimed during 2006. Thirty ponderosa pine were planted at each site. Additionally, 30 mixed meadow rose, wax currant, and mountain mahogany were also planted. Tree and shrub survival rate was excellent; however, animals are now eating the young seedlings. Some reseeding was done at Site L and E on the Blue Smoky claim. Winter survival for these areas was not as good as expected. The re-disturbed area from unauthorized digging and the prospect on Site C were filled, re- contoured, and reseeded. Survival rate for the trees was good as of May 2008. All reseeded areas are doing very well. Proposed 2008 Operations: Operations will be in conjunction with operations on Colorado Calumet Co. Inc. mining claims and Crystaljack mining claims between early May through early August and be conducted primarily using a John Deer 992 and/or 690 track hoe on the Smoky Hawk and Elk Horn claims at Site B. Additionally, blasting will be conducted at this site. An area on Site B will again remain open at the end of the season, approximately 0.3 acre. Completion at Site B is anticipated now to be 2009 to accommodate the blasting plan. Additional prospects may be opened at Sites B and C to check for the continuation of the mineralized zone. Any prospects will be filled and reseeded. Site visits, including mineral extraction, reclamation, and claim maintenance will be continued throughout the season.