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PERMIT#:M-1987-072 <br /> INSPECTOR'S INITIALS: MAC <br /> INSPECTION DATE: September 29,2016 <br /> OBSERVATIONS <br /> The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br /> (Division). Thomas Musch, the Operator of the Lee No. 2 Placer, was also present for the inspection. The Lee <br /> No. 2 Placer is located in Gilpin County, approximately 3 miles southeast of Central City, Colorado. The site is <br /> permitted for 1 acre and the post-mining land use is pastureland. The permit area is situated on the lower <br /> Russell Gulch, within a 40 acre claim issued by the Bureau of Land Management (BLM). <br /> The purpose of the inspection was to follow up on a corrective action issued during the previous inspection <br /> conducted on January 21, 2016. During the January 2016 Inspection, the Division found the Operator did not <br /> have a permit sign posted at the site entrance and found the boundary of the affected area was not <br /> delineated. In addition, the Division did not have a copy of the Mining Plan or Reclamation Plan Maps which <br /> conformed to the requirements Hard Rock Rules 6.2.1(2), 6.3.5(2) and 6.3.5(3). The Operator submitted a <br /> Technical Revision on May 13, 2016 to update and clarify the location of the permit boundary. The Division <br /> approved the Technical Revision on July 27, 2016. <br /> Signs and Markers: <br /> The Operator has posted a permit sign at the site entrance and a second permit sign towards the center of the <br /> affected area. The boundary of the affected area was marked with PVC posts. The Division surveyed the <br /> location of the boundary markers with a Trimble -Juno 3B GPS unit. The data were downloaded and overlain <br /> on top of a Google Earth aerial photograph of the site (copy enclosed). The Division determined the permit <br /> boundary is correctly delineated and encompasses an area of 1 acre. In addition, the Division has determined <br /> there are no permanent man-made structures within 200 feet of the affected area, including the Central City <br /> Parkway. As a result, the Operator is not required to obtain any structure agreements. <br /> This concluded the inspection. <br /> Page 2 of 4 <br />