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PERMIT#:M-2001-033 <br /> INSPECTOR'S INITIALS: DC1 <br /> INSPECTION DATE: April 23,2021 <br /> OBSERVATIONS <br /> This was a requested inspection for an acreage release application (AR1) for 25.6 acres. The inspection was <br /> conducted at the Rough Cut Pit site by DRMS representative DJ Cunningham. A representative for Rough Cut, <br /> LLC was present during the inspection to represent the Operator. This site is an active, 467 acre, 112c permit, <br /> where 76 acres have been disturbed to date. The site was active during the inspection. The operator <br /> requested an acreage reduction on March 24, 2021. This inspection was conducted to evaluate if the parcels <br /> in question are eligible for release. <br /> The requested release areas are broken up in to 4 separate parcels (Areas 1, 2, 3, and 4), 10.0 acres on the <br /> northeast, 13.6 acres on the west side, 1.9 acres to the northeast, and a small .01 acres area in the middle of <br /> the permit. <br /> Area 1 and 2 (10.00 acre area and 1.9 acre area): <br /> The 10 acre and 1.9 acre are both located on top of a hill on the northeast side of the permit. Both areas have <br /> been seeded and graded to 3H:1V or greater. The vegetation of the area is sparse, with several areas devoid of <br /> vegetation. The 1.9 acre area has several mounds of loose fill that has not been leveled out and these areas <br /> were lacking in vegetation as well. Area 1 and 2 are not recommended for release. <br /> The Division recommends the Operator continue to try to establish vegetation in these area and reseed the <br /> area in the fall and early spring. <br /> Area 3 (.01 acres in the middle of the permit): <br /> This small area, located between the 2 active areas, is right off the main road used to connect the two areas <br /> and transport material offsite. The section was graded and seeded with adequate vegetation. The area is small <br /> in comparison to the entire site and is located right next to the haul road. Due to this area being right in the <br /> middle of the site and the fact that the haul road is right next to it, the Division has no guarantee that this area <br /> will not be further disturbed throughout the life of the mine and does not recommend release of this area. <br /> Area 4 (13.6 acres): <br /> The 13.6 acre area is located on the south western end of the permit. The area was graded to at least a 3H:1V <br /> and vegetation has been established in this area.The Division finds this area to be adequate for release. <br /> The Division feels that the 10 acre, 1.9 acre, and the .01 acre area are not ready to be released. The Operator <br /> is encouraged to continue to work to establishing natural vegetation in the area. <br /> The Division also feels that the 13.6 acre area located on the south western end is ready for release. <br /> Page 2 of 5 <br />