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2011 Annual Report <br />Front Range Aggregates, LLC <br />Parkdale Project <br />Permit # M- 1997 -054 <br />Mining Activity <br />In March of 2008, Front Range aggregates (FRA) amended the Parkdale permit. The primary <br />modification to the permit included an addition of 10 aces to the western boundary of the old <br />permit and the ability to mine below the water table to bedrock. The amended plan includes the <br />installation of a clay liner in the alluvial mine area to create water storage. Since that time, <br />mining has proceeded above the water table to extend the mine to the new western limits. The <br />activity illustrated on the enclosed map represents mining only above the water table. Once the <br />aggregate source west of the plant and above the water table has been exhausted, mining <br />below the water table will commence at the west end of the alluvial deposit. We anticipate this <br />could start 3rd quarter of 2012. Mining will also continue eastward on the south boundary, and <br />south to the present crushing area also above the water table. The current disturbed acreage is <br />the area west of the plant that has been or is now being mined. <br />Mined volumes remained considerably less in 2011 than the mine is permitted to produce due to <br />the dramatic reduction in market demand. Hours and manpower were reduced to <br />accommodate these new market dynamics. <br />Ground Water <br />Since the mine produces washed products, some ground water is exposed on the mine floor in <br />the fresh water and settling ponds. A Substitute Water Supply Plan is in place to account for the <br />ground water consumption and loss. Due to reduced ground water levels, no water was <br />discharged from the pit area in 2011. Once mining below the water table begins as described <br />above, dewatering will be more necessary. <br />Overburden and Top Soil Stockpiles <br />Overburden has been used to create perimeter safety berms on the expanded western mining <br />limit. Some of the original overburden on the original south perimeter has been moved to the <br />western stockpiles to allow mining to the new southern permit limits. Excess overburden is now <br />being stockpiled in the disturbance area west of the mine. Additional top soil stockpiles have <br />been created in the western and southern disturbance areas as noted on the enclosed map. <br />Many of the overburden and topsoil stockpiles were created late this year. Sloping and grading <br />of these piles was done late in 2011, too late to allow for seed germination. Seeding as <br />required to adequately stabilize the new stockpiles will take place in the spring of 2012. <br />Reclamation <br />Following the mine plan according to the amended version of 2008, the mine has not been <br />excavated to its maximum depth at any location. Therefore, no permanent reclamation was <br />performed at the mine this year and none is planned for next year as the excavation will not yet <br />