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~%~~~~~® <br />FEB 0 Q 2005 <br />pieision of Minerals and Geology <br />February 7, 2005 <br />Mr. Kent Gorham <br />Colorado Division of Minerals & Geology <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re: New Elk Mine: Permit No. C-81-012 <br />Quarterly Waste Bank Inspections <br />Annual Sediment Pond Inspections <br />Dear Mr. Gorham: <br />Peak Project Management, LLC <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />(719) 8461975 <br />Enclosed are copies of the Fourth Quarter 2004 Quarterly Waste Bank Inspection Reports conducted to <br />comply with CDMR Rule 4.09.1(11) and 4.10.2(2) and the Annua12004 Sediment Pond Inspection <br />reports conducted to comply with Rule 4.09(15). <br />Note that pond 8 was not surveyed as part of this inspection due to ice covering the surface of the pond. <br />The operator has set up a pump to de-water the pond and is now pumping water to pond 6 (non- <br />discharging pond). This will lower the water level and allow a more accurate survey as soon as weather <br />conditions improve. A supplemental Annual Report will be completed after the survey. <br />Please contact me if you have any questions- <br />Sincerely, <br />~'~M-- <br />Ronald G. Thompson <br />Project Manager <br />MSI3A Certified -Impoundment Inspections <br />