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IMF% <br />ALBERT FREI & SONS <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: .41 <br />Re: Annual Repot, Stagecoach Pit <br />M.L.R.B. Permit No.A-1983-067 <br />42., P.O. BOX 700 <br />HENDERSON, CO 80640 <br />(303) 289-1837 <br />(303) 289-2865 FAX <br />REcF,vFn <br />APR 19 2011 <br />Division of me-claiiation, <br />AP Mining and Safety <br />Our files indicate that the anniversary date for this permit <br />is April 20, 2011. The effective date of all information in this <br />report is April 13, 2011. Please refer to the Annual Report Map <br />submitted in 2009 since nothing has changed at the pit this year. <br />This pit HAS NOT been granted a Temporary Cessation and it HAS <br />operated more than 180 days this year. The bond is currently <br />$230,691.00. <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 has not started at this mine. The prior operator <br />stripped some of the topsoil and overburden from the site so <br />it is ready for mining. <br />(2) No reclamation is required at this time. The topsoil has a <br />vegetative cover at this time. <br />(3) Mining may start on the northern part of the mine this year <br />depending on market demands. The material will be processes <br />at our Worthing Pit that adjoins this permit area on the <br />north. <br />(4) Sloping will commence if the outer limits of the mine are <br />reached. We will continue to collect groundwater data for the <br />monitoring wells. The permanent lake level control structure <br />was completed on the Zigon site last summer and appears to be <br />working as designed. The groundwater monitoring data we have <br />collected since June 2009 is attached for your review. The