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n°~~ U3~08 10:14a George Otten <br />~, 9707856248 p.l ~/_/(r~ <br />{(p(~ ~ <br />~~ Annual Re o /YI- /9Q D`f ~ ~~~7~=- ~ ~ ~S nom/ <br />DIG Q J <br />m it . IN-99~t163- 7 I, }'~. ~•~ l <br />ntral-Eity-eabrada-t1sA ~~1~~ ~~1 .~ 3'! <br />11438 Vlfeld Co. Rd 19, Ft Lupton, Colorado 80621 ~~/I~/p~ 3i~ <br />July 13, 2006 <br />The Bates-Hunter Mine is heated in the historic Central City mining district in Gilpin County, <br />Colorado USA. The mine lies within the central front-range region of the Rocky Mountains, <br />approximately 30 miles west of Denver Cobrado in the United States of America- The mine lies <br />in section 12 T3S, R72W, 6°1 Principal Meridian USA. <br />There have been no new disturbances or reclamation performed at the Bates Hunter Mine during <br />the last year. Activities in 1995 have focused on rehabilitation and de-watering of the Bates <br />Hunter Shaft to confirm the presence of historic gold grades and test expbration targets with the <br />immediate intention of defining a gold resource base. <br />The Bates Hunter water plant has been in operation since September 1995, and has treated <br />some 750,000 gaibns of mine water through June of 2006. The mine water is filtered, and <br />brought up to drinking water standards before being discharged into Gregory Gulch, under the <br />provisions of Colorado Discharge Permit, No. CO-0043168. <br />Shaft rehabilitation and de-watedng of the Bates-Hunter Mine in Central City Colorado has <br />progressed to the point that the -93 and -t 12-foot levels of the mine are now open far inspection. <br />During de-waterurg and rehabililation of the mine, gedogic mapping, and sampling is being <br />carried out to determine the treoe element signature and speafic strrKtural controls for each <br />stage ofvein-formation. This process will continue through each of the seven levels. The <br />registered fire assay and geochemipl data for the Bates Hunter Goki Mime in Central City <br />Colorado was provided by, ACT Laboratories, Tucson, Arizona USA antl American Assay labs in <br />Reno, Nevada USA. <br />This year, the mine staff cleaned-up the mine office and hoist house. They also hauled away a <br />couple truck-loads of scrap-iron and old equipment that has accumulated at the mine site over <br />the years and had become a safety hazard. <br />Res//p Ily Submitted <br />~4' <br />Brian Alers, <br />Arikaree F~cpbration <br />Professional Geologist <br />P.O. Box 775 <br />Nederland, Coorado 80466 USA <br />wows ni u~q lerexonvahoo.com <br />(303} 258-7242 <br />