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Peak Project Management, LLC <br />34115 County Road 20.8 <br />Trinidad, CO 81082 <br />(719)846-4975 <br />December 14, 2006 <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 Sediment Pond Inspections <br />Dear Mr. Gorham: <br /> <br />DEC Z U 2006 <br />Division of Reclamation, <br />Mining and Safety <br />Enclosed are copies of the Third Quarter 2006 Quarterly Sediment Pond Inspection <br />Reports conducted to comply with CDMR Rule 4.05.9(17). All embankments were <br />found stable and vegetated. No discharges have occurred during this quarter. <br />Please contact me if you have any questions. <br />Sincerely, <br />D/L <br />Ronald G. Thompson <br />Project Manager <br />MSHA Certified -Impoundment Inspections <br />