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PERMIT#: M-2013-044 <br /> INSPECTOR'S INITIALS:TCW <br /> INSPECTION DATE:July 10,2013 <br /> OBSERVATIONS <br /> This inspection occurred to evaluate unpermitted activity at the 5th Regimental claim in Teller County. <br /> Present with me during the inspection were Ms. Marcia Rose-Ritchie (USFS) and Mr. Tom Kaldenbach (DRMS). <br /> Mr. Eric Hedricks and Ms. Juliana Kern were present representing the operator during the inspection. The <br /> claims are located on the edge of the Hayman Burn area on moderate slopes in the southwest corner of <br /> Section 12. The soil is largely weathered bedrock (grus) with thin topsoil. <br /> The area has been dug historically, and there is significant pre-existing ground disturbance. Mr. Hedricks <br /> currently has two dig sites he is responsible for, including continued work in the discovery hole, which is his <br /> largest disturbance, approximately 20x30 feet and extends below ground surface. The second area of <br /> disturbance in smaller, approximately 4x5 feet. Mr. Hedricks indicated he is only at this claim a couple times a <br /> year as a hobby. No active erosion was observed on the claim. In general, the claim is in good condition. <br /> This inspection was only for the claim in Teller County. It is our understanding that Mr. Hedricks has additional <br /> claims in other counties. These claims would need similar permitting if they are being actively prospected or <br /> mined as defined by 34-32-103(8) and 34-32-103(12). <br /> Gen. Compliance With Mine Plan: <br /> Based on the observations during the inspection, a Notice of Intent to conduct prospecting, or a reclamation <br /> permit is required for these claims. If Mr. Hedricks wishes to continue to work the sites strictly as prospects <br /> (ie, no intention for extracting mineral resources for purposes other than investigating the mineral deposit), <br /> then a Notice of Intent (NOI) is required. If the claim will be developed or minerals will be extracted, then a <br /> reclamation permit is required. <br /> If the appropriate application is filed with the State by August 15, 2013, no further action by the state is <br /> warranted. <br /> Page 2 of 7 <br />