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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 />e-mail: ronthompson@wildblue.net <br />March 12, 2009 <br />Mr. Kent Gorham <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />Re: Lorencito Canyon Mine, Permit No. C-96-084 <br />Annual Reclamation Report - 2008 <br />Dear Mr. Gorham: <br />RECEIVED <br />MAR 16 2009 <br />Division of rteuamauon, <br />Mining and Sd* <br />Enclosed is the Annual Reclamation Reporting Form for 2008 for the Lorencito Canyon <br />Mine. Included with the report are Tables ARR-1 Soil Distribution Plan, ARR-2 Seeding <br />Plan, and Map ARR-1 2008. <br />Map ARR-1 delineates areas of interseeding accomplished during 2008. Plant growth <br />was sparse in the two areas located on the upper extent of Fill 7. These areas received <br />additional topsoil and seed with a light covering of hydromulch. An area on C-1 and two <br />strips on W-1 with steeper slopes had formed gullies cutting through the originally placed <br />topsoil. Modifications to drainage patterns in 2006 and the general maturation of <br />vegetative cover seemed to have elimenated the cause of erosion. Thus, additional <br />topsoil was brought in from BA-3 to fill the rills and gullies and the areas were <br />interseeded and covered with hydromulch. Attached with the report are seed certifications <br />attesting to seed mix. <br />Topsoil Borrow Area BA-3 was not used during 2008 (the topsoil discussed above was <br />transported to and stockpiled at the sites in 2007). Some additional topsoil may be <br />recovered from BA-3 in 2009 to complete interseeding of other eroded areas. However, <br />the plan is to complete regrading and seeding of the borrow area in 2009. <br />Re-seeding of the fill slope of the Jeff Canyon Haul Road was completed in February of <br />2008. The area reseeded was that portion of the slope used as a fill area to dispose of <br />rock excavated as part of a State Highway 12 improvement project. This material <br />covered-over the original seeding of the Jeff Canyon outslopes completed in 2002. This <br />area received Phase III bond release for Industrial Use in 2008.