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May 10, 2010 <br />Annual Report <br />LAKE COUNTY <br />Public Works <br />1200 Hazel Street <br />Leadville, CO 80461 <br />Phone: 719-486-0259 <br />Fax: 719-486-8479 <br />Division of Reclamation, Mining & Safety <br />Department of Natural Resources <br />1313 Sherman Street, Room 215 <br />Re: Permit No. M-1977-071 <br />Half Moon Pit <br />Anniversary Date: May 25, 2009 <br />Gentlemen; <br />Enclosed, please find the payment of $791.00 for the annual fee for the above referenced <br />permit. <br />The activity in the calendar year 2009 consisted of general mine site cleanup and moving the <br />top soil away from the high wall for future mining activities, topsoil was moved to the east and <br />north topsoil storage berms as described on our mining plan. Seeding the berm occurred in the <br />fall of 2009. The County did also grade the high wall down to a safe 4:1 slope where possible to <br />prevent sloughing and erosion while the mine is idle. <br />There should not be any new disturbances for the year 2010. It is expected that production for <br />the year May 26, 2009 through May 25, 2010 will be at a minimum of pit run or already crushed <br />material usage. <br />Please note: At this time ground water has not been disturbed and it is unlikely that any will be <br />in the future. At the present mining elevation, the pit should not encounter any groundwater. If in <br />the future we do encounter groundwater, we will follow all guidelines as required by law. <br />Please contact Michael Irwin; at 719-486-0259 should you have any questions <br />Sincerely <br />Mich ellrwin <br />Operator/Technician <br />Lake County Public Works