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Peak Project Management 34115 County Road 20.8 Trinidad, CO 81082 Telephone/Fax: (719) 846-2427 Cell: (719) 859.0111 email: wnthompson~senaoniea.org July 1, 2006 Mr. Kent Gorham Colorado Division of Minerals & Geology 1313 Sherman Street, Room 215 Denver, Colorado 80203 RECEIVED ~u~ 0 5 eons Division of klinerals 8 Geology Re: New Elk Mine: Permit No. C-81-012 2005 Annual Reclamation Report Dear Mr. Gorham: Enclosed is the Annual Reclamation Report 2005 for the New Elk Mine. ARer reviewing acreages reported in 2004 and in the pending bond release, the 2004 acreages (with the exception of correcting an addition error for total revegetated acres, changing 24.42 to 24.6 acres), the acres reported in 2004 were carried forwazd. The following reclamation activities were completed during 2005: Final Reclamation 1. The access road to the West Portal Pump House and the facilities azea comprising a total of 1.64 acres was graded to final contour and ripped. The remaining pump house foundations were transported to WP-5, as shown on Permit Map 16, for on-site disposal. The portion of the access road classified DR (Disturbed Refuse) was covered with four inches of topsoil. The entire 1.64 acres was seeded with the approved rangeland seed mix at a rate of 261bs-PLS/acre in early December of 2005. 2. The demolition of the West Portal Industrial Building was completed. Structural steel and copper wve were salvaged. The remaining debris was buried on site at WP-2 and 3. The area was graded to final contour. The area is classified DNR (Disturbed No Refuse) and no soil material is required, As part of returning the azea to final contour, excess soil material was recovered from the steep slope south of the Industrial Building and spread uniformly over the area. This area is scheduled for seeding in 2006. 3. The remaining West Portal Hoist House foundations were disposed of on-site at WP-1. The azea was graded to final contour in preparation for seeding in 2006. The area is classified DNR and no soil material was required. 4. Culverts C-23, 24 and 45 located is the West Portal Trolley Yazd were removed. These drainages were reshaped to final contour. One acre of the 3.77 acres of the trolley yard was graded to final contour. This area is ready for seeding in 2006. 5. Concrete foundations remaining at the Corehouse site were disposed of on-site at WP-6. The disturbance area was graded to final contour. The area is ready to be ripped and then seeded in 2006. 6. The West Portal Oil House (Garage) was previously removed. The remaining foundations were transported to WP-5 for on-site disposal. The azea is ready to be ripped and seeded.