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reclamation estimate is $51,700 and an Irrevocable Letter of Credit remains in place for $51,700 <br />from the Bank of Colorado of Yuma, CO. <br />Extensive care and maintenance activities have occurred during the past year at both the mine <br />and mill. The mine property is physically separated from the mill property and the activities at <br />each property are reported below: <br />Leadville Mill: <br />1) Quarterly water quality sampling from monitoring well MW-1 has been resumed <br />following the succession of operator (SOO) approval. MW-1 had sufficient water for <br />testing in July 2009,.and water quality results are presented in Appendix 1, attached to <br />this report. MW-1 had insufficient water in the well during any of the other three <br />sampling periods. The sampling reports are also presented in Appendix 1. <br />2) Permanent metal mill permit identification signs have been posted on the main gate to the <br />facility and on the mill building, identifying the permitee and permit number. <br />Additionally, no trespassing signs and warning signs have been posted on the property <br />boundary (which includes the permit boundary) fence. The barbed wire property <br />boundary fence was repaired and tightened. <br />3) Permit boundary stakes have been replaced. <br />4) The mill buildings have been extensively cleaned, cleared of extraneous material and <br />equipment in preparation of reconditioning and restarting the mill. The mill equipment <br />has been operated as part of maintenance testing, but no material has been processed by <br />the equipment. <br />5) Designated toxic and or hazardous chemicals and reagents in the mill were collected, <br />transported, and disposed of by EPA designated transporters and disposal facilities. <br />6) Grease, oils, fuels and lubricants stored in the mill building and in an adjacent metal <br />building outside the mill have been removed from the facility and recycled at the Lake <br />County Landfill recycling station. <br />7) Landfill disposable items inside and outside the mill buildings were collected in metal <br />drop off containers and sent to the Lake County Landfill. <br />8) Scrap steel, iron, rods, and equipment parts were collected by Colorado Junk & Scrap of <br />Leadville, CO for recycling and/or resale. <br />9) Sediment control measures included temporary silt fence construction around the ore <br />stockpiles . Additionally, culverts were cleaned, berms maintained and roads maintained. <br />10) Ore stockpiles were covered with visqueen material as a temporary measure to minimize <br />acid generating potential of sulfitic ores. This visqueen material remains in place as long <br />as the material remains in place. <br />11) A weed control plan was filed, accepted and implemented. <br />12) The trees growing in the TSF facility area were removed. <br />13) Air Quality APEN permit application package is prepared and awaits confirmation of <br />Calais ability of supplying ore prior to application submittal. <br />14) Tailings storage facility topography has been surveyed. TSF design awaits confirmation <br />. of Calais ability of supplying ore prior to initiating design and construction. <br />15) Line of credit working capital financing has been secured for start-up operations.