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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 />RECEIVED <br />MAR U 2 2009 <br />February 22, 2009 Division or Reclamation, <br />Mining and Safety <br />Mr. Kent Gorham <br />Colorado Division 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 Sediment Pond Inspections <br />Dear Mr. Gorham: <br />Enclosed are copies of the Fourth Quarter 2008 Quarterly Sediment Pond Inspection <br />Reports conducted to comply with CDMR Rule 4.05.9(17). All embankments were <br />found stable and vegetated. <br />Mine water was first pumped to Pond 1 in mid-December with the first discharge <br />occurring on December 15, 2008 with a continuous discharge averaging 2200 GPM <br />through the remainder of December. No other discharges occurred during the quarter. <br />Please contact me if you have any questions. <br />Sincerely, <br />Ronald G. Thompson <br />Agent <br />MS14A Certified - Impoundment Inspections