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PERMIT #: M- 1994 -114 <br />INSPECTOR'S INITIALS: TOD <br />INSPECTION DATE: February 19, 2015 <br />OBSERVATIONS <br />This pre - operation inspection was conducted in response to a request for a conversion from a 110c to a 112c <br />application that the Division of Reclamation, Mining and Safety (DRMS) received on December 17, 2014. This <br />pre - operation inspection was conducted by Tyler O'Donnell of DRMS. Kagan and Son, LLC, the Operator, <br />was represented by Andy Kagan during the inspection. Ken Klco with Azurite, Inc., the consultant for Kagan <br />and Son, LLC, was also present during the inspection. The Bureau of Land Management (BLM), the partial <br />mineral rights owner, was represented by Stephanie Carter during the inspection. <br />The proposed conversion application for the South Pit was called complete on December 22, 2014. The South <br />Pit is located in Custer County approximately 12.5 miles south of Westcliffe, Colorado. The South Pit is <br />proposed as a 32.9 -acre pit for the removal of construction materials, primarily sand and gravel. The proposed <br />post - mining land use is rangeland/residential. <br />During the inspection the sky was clear and the ground was dry. The ground was mostly cover with snow; <br />snow cover was approximately 85 %. The site was surrounded by rangeland, wildlife habitat, and residential <br />land uses. The public notice required by Rule 1.6.2(b) was posted at the entrance of the site, along with the <br />mine permit sign. <br />The proposed South Pit expansion sits just south of Froze Creek. Portions of the site were previously used as a <br />small farm, pasture for livestock, and homestead. The current vegetation on the proposed mine site consisted <br />of. grasses, forbs, shrubs, and a few annual and noxious weeds. The Operator has been successfully managing <br />annual and noxious weeds in the current 110c permit boundary and surrounding lands. Major vegetative <br />species observed during the inspection include but not limited to where; crested wheat grass, sand dropseed, <br />Mountain Brome, Blue Gra.ma, yucca and Rabbit brush. The soil consists of rocks and cobble up to the land <br />surface. All observed permanent man-made structures located within 200 -feet of the proposed 112c permit <br />boundary were addressed through the review of CN -01. <br />Inspection Contact Address <br />Andy Kagan <br />Kagan & Son, L.L.C. <br />555 Ernest Ave <br />Westcliffe, CO 81252 <br />CC: Tom Kaldenbach, DRMS <br />Ken Klco <br />Anzurite, Inc. <br />P.O. Box 338 <br />Cotopaxi CO, 81223 <br />Page 2 of 4 <br />