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P.O. BOX 700 <br />HENDERSON, CO 80640 <br />ALBERT FREI & SONS (303) 289-1837 <br />(303) 289-2865 FAX <br />April 20, 2011 <br />Mr. Tony Waldron <br />Division of Reclamation, Mining & Safety <br />Minerals Section <br />1313 Sherman Street Suite 215 <br />Denver, Colorado 80203-2273 <br />Dear Mr. Waldron: <br />Re: Annual Report, PriolaPit APR 19 20 7 <br />M.L.R.B. Permit No. M-2007-O?t <br />$ 7 Division dr KeGlw`'&'0"- <br />Mitning and SeetY <br />Our files indicate that the anniversary date for this permit <br />is April 30, 2011. The effective date of all information in this <br />report is April 7, 2011. Please refer to the attached Annual <br />Report Map for the location of areas discussed in this report. <br />This pit HAS NOT been granted a Temporary Cessation and it HAS <br />operated more than 180 days this year. The current bond is <br />$563,000.00 for the 13.98 acre single stage mine. <br />We will deal specifically with each of the Annual Report <br />requirements as outlined in Rule 1.15 of the Rules and Regulations. <br />(1) Mining was completed this year, so the entire site is <br />disturbed as allowed in the permit. <br />(2) All exposed water was covered this years when the final lake <br />area was fill to a level that is at least 2 foot above the <br />ground water table. Backfilling has followed mining within <br />the mined area (tan). The sloping around the outer limits of <br />the south area was seeded last spring and begins it second <br />growing season, 0.43 acres (green). Now that there is no <br />exposed water we have requested a bond reduction to eliminate <br />the backfilling costs from the bond. <br />(3) Mining is done. <br />(4) We will continue to fill the filled mined areas until the <br />final level is reached (tan). Exterior slopes of the filled