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PERMIT #: M-2014-027 <br />INSPECTOR'S INITIALS: SJM <br />INSPECTION DATE: May 10, 2017 <br />OBSERVATIONS <br />This was a monitoring inspection of Crystal Hill Project; M-2014-027 operated by Colorado Mining and <br />Exploration, LLC. This site is located approximately 8 miles northwest of La Garita, Colorado in Saguache <br />County. I, Stephanie Mitchell of the Colorado Division of Reclamation, Mining and Safety conducted the <br />inspection. Mr. Jake Wilkinson, of Colorado Mining and Exploration, LLC accompanied me on the inspection. <br />This is a 9.68 acre 110(2) hard rock mining operation for gold. A mine identification sign was in place at the <br />entrance to the mine site. Permit boundaries were all clearly marked. The site was not active at the time of <br />inspection. The site is stable and no disturbance was observed outside of the approved permit boundaries. <br />The area is all on private patented claims. <br />Material being extracted by a Cat 235 excavator. No debris or fuel is being stored at the site. The site was <br />previously mined by Draco Mining and released from Reclamation responsibility from the Division in 1995. <br />Colorado Mining and Exploration re -permitted the site in 2014. Most of the material to be mined is in the pit <br />floor. The benches to the north are pre-existing. There are several sampling trenches around the perimeter of <br />the pit floor. There is about 2 acres of disturbance. <br />No offsite damage or erosion, or other problems or violations were noted during this inspection. <br />Photos that show the conditions observed during the inspection are included at the end of this report. <br />Responses to this inspection report should be directed to Stephanie Mitchell at the Division of Reclamation, <br />Mining and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado <br />81501, phone no. 970-242-5025. <br />Page 2 of 4 <br />