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Peak Project Management, LLC <br />34115 County Road 20.8 Trinidad, CO 81082 <br />Telephone: (719) 846-4975 Fax: (719) 846.4930 Cell: (719) 859-0111 <br />ronthompson@wildblue.net <br />July 25, 2008 <br />'ec'``0-® <br />2 ?, <br />?V o1\ oi <br />? <br />0? <br />Mr. Kent Gorham 0?v <br />Colorado Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: New Elk Mine: Permit No. C-81-012 <br />Quarterly Waste Bank Inspections <br />Annual Sediment Pond Inspection Reports <br />Dear Mr. Gorham: <br />Enclosed are copies of the Second Quarter 2008 Quarterly Waste Bank Inspection <br />Reports conducted to comply with CDMR Rule 4.09.1(11) and 4.10.2(2) and copies of <br />the Annual 2008 Sedimentation Pond Inspections to comply with Rule 4.05.9(15). <br />The operator at New Elk began dewatering Pond 8 during the second quarter to facilitate <br />a more accurate sediment level survey than in 2007; additional pumping is needed to <br />provide an accurate sediment survey and the operator has committed to continued <br />pumping with a re-survey expected in the Third Quarter. <br />Please contact me if you have any questions. <br />Sincerely, <br />J'"U <br />Ron Thompson <br />Agent