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Peak Project Management, LLC <br />34115 County Road 20.8 Trinidad, CO 81082 <br />Telephone: (719) 8464875 Fax: (719) 846-4930 Cell: (719) 859-0111 <br />ronthompso~~wlldblue.neY <br />March 24, 2007 <br />Mr. Kent Gorham <br />Colorado Division of Minerals & Geology <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />~~f~_ <br />MAR 3 U zuu/ <br />Division of ~s;~.,,,~a~~on, <br />Mining and Safety <br />Re: Lorencito Mine: Permit No. C-96-084 <br />Quarterly Sediment Pond Certifications <br />Dear Mr. Gorham: <br />Enclosed are copies of the Fourth Quarter 2006 Sediment Pond Inspection Reports. All <br />embankments were found stable. No discharges were observed during the quarter. <br />The annual pond inspection was scheduled for this quarter. Typically water levels in the <br />ponds are at their minimum during this quarter easily facilitating determination of <br />sediment and water levels. October storms followed by freezing weather in November <br />and snow throughout December resulted in rescheduling the annual inspection and <br />elevation surveys to First Quarter 2007. <br />Please contact me if you have any questions. <br />Sincerely, <br />~.~~~~ <br />Ronald G. Thompson <br />Project Manager <br />MSHA Certified -Impoundment Inspections <br />