2010-02-22_REPORT - M1985029 (3)

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i ?al Greg Lewic%ki And Associates 11541 Warrington Cou4thone: (303) 346-5196 Fax (303)-346-4 Parker, CO USA 801419iMai1:greg@1ewicki.biz February 16, 2010 Dave Bird Colorado Division of Minerals and Geology Minerals Section 1313 Sherman Street 2nd Floor Denver, CO 80203-2273 Re : Annual Report Alma Placer, M-1985-029 Dear Dave: Enclosed is the Annual Report for the past year for Alma Placer Mine, including map and report form. Past records show that the annual date for the pit is February 22nd of each year. During the past year, the permit was transferred to the new operator, Alma Placer Company, LLC. The new financial warranty for the permit, which was recently raised, is now $188,679 and the total permit area is 216.10 acres. The following information is provided to comply with C.R.S 34-32.5-116 or C.R.S 34-32- 116: (1) No new areas have been disturbed in the past 12 months. The gravel operator has extracted gravel from the same disturbed area as has been in use for the past few years. Mining has been accomplished by extracting deeper gravel. The power poles that were in the gravel mining area have been relocated and the area has been smoothed out. The gravel operator has installed settling ponds as shown from which silt is being excavated and stockpiled. The silt stockpile area for the gravel operator is shown on the Annual Report Map as the 2006 Stockpile area. The gold operator has also operated within the same disturbance area as in the past few years. Material for the operation has been obtained by processing gravel that was previously disturbed on the surface. The ponds immediately below the gold processing plant are frequently cleaned out to remove sediment, and this silty material is then stockpiled for later use in reclamation as substitute topsoil. The location of the stockpile area is shown on the attached Annual Report Map. In 2009, mining continued in Phase 1 and Phase 2. See the Annual Report Map. Some of the processed material from the gold operation is also being sold as construction aggregates, but the amount sold does not result