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ANNUAL REPORT OF GCC RIO GRANDE, INC. <br />STATE OF COLORADO MINING PERMIT NO. M- 2002 -004 <br />August 28, 2012 <br />Pursuant to C.R.S. 34 -32 -116 and as operator and permittee holder of a Colorado Mining <br />and Reclamation Permit, GCC Rio Grande, Inc. (GCC) submits this Annual Report to the <br />Colorado Division of Reclamation Mining and Safety (DRMS) for Permit No. M- 2002 -004 (the <br />"Permit "). The Annual Fee and Report Request and GCC's check in the amount of $791 are <br />included with this submission. <br />A. BACKGROUND INFORMATION <br />GCC has operated its cement manufacturing facility and associated limestone quarry in <br />Pueblo since 2008. In Calendar Year 2011, GCC produced cement from March 1 through <br />December 27 GCC continues to maintain an active program of coordinating, pursuing and <br />maintaining compliance with all required local, state and federal permitting as well as optimizing <br />its operations at the facility and mine. <br />B. SPECIFIC FACILITY - RELATED ACTIVITIES <br />The following is a description of the quarry and operating activities that are underway. <br />1. Quarry Activities. Limestone mining has been conducted at the quarry for cement <br />production purposes. In accordance with the lease that GCC holds with the State of Colorado <br />Board of Land Commissioners, GCC has been paying monthly mineral production royalties <br />since November, 2007. <br />As of July 31, 2012, the areal extent of the limestone quarry was approximately <br />51.5 acres including the limestone pit, overburden stripping areas, and areas that have been <br />reclaimed or stabilized pending reclamation. Approximately 26 acres have been reclaimed <br />and /or temporarily stabilized. The quarry sump, crusher area and road consist of approximately <br />10.5 acres. Therefore, there are approximately 15 acres of exposed area within the quarry. <br />Exhibit A depicts these areas. <br />Exhibit B shows the area that GCC anticipates will be stripped and mined in the <br />coming year. This area consists of approximately 20 acres. Please note that the depictions in <br />Exhibits A and B are based on GCC's best current projections, but remain subject to possible <br />deviations in order to preserve the flexibility required for GCC to optimally operate its plant. <br />In the Fall of 2011 GCC reclaimed and revegetated 20 acres of the open pit area and <br />areas stripped in 2010 and 2011 (see Exhibit A). The seeds became established in the Spring of <br />2012, and approximately 70% of revegetation has been established. These areas are shown on <br />Exhibit A. <br />1 <br />