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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1978-222 <br />INSPECTION DATE: 10-31-07 <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. Nuvemco representatives requested an on-site meeting at the <br />Monogram Mine to discuss permit boundaries and related issues prior to possible reactivation of mining at the site. <br />The Monogram Mine is located on Davis Mesa in Southwest Montrose County. The DRMS Database shows the <br />permit disturbance area as 2.29 acres for the life of the mine with 9.9 acres permitted. <br />The permit file possesses a number of maps that in many cases conflict or are not of sufficient detail to clearly define <br />where the permit boundaries for the approved plans exist. A June 2003 map shows the mine disturbance aeeas in a <br />piece meal fashion which incorporates six distinct mines. Noted on the map of the Monogram Permit are the Anna <br />May, Wilson, Happy Thoughts, Great Hespar and Bobcat Mines. The Wilson Mine azea was released from the <br />Monogram-Jo-Dandy in 2002. Confusion occurs as it appears the map is addressing both Monogram Mine permit <br />and the Monogram-Jo Dandy Mine M-1977-293. The mines are now both permitted by Nuvemco. Another issue of <br />confusion is the reference to mines by historical names as opposed to the permit site name. It will be in everybody's <br />best interest to treat the 2 sites sepazately and maintain the permit name for each site in all correspondence and <br />reviews. <br />Since the mine has been in a lengthy period of inactivity much of the original approved disturbance has either been <br />reclaimed by the operators or naturally. Main roads still exist in a usable form and old drill or access roads have <br />reclaimed one way or another. The reclamation will help both staff and the permit holders establish a point from <br />which to clearly define the permit borders and define future disturbance plans. <br />Nuvemco will need to assess its future plans at the site. Once those plans have been solidified, new maps and a new <br />mining and reclamation plan will have to be submitted as a Technical Revision (TR) for the Division review and <br />approval. There is no fee for the TR of a 110(2). As noted in phone discussions, the Division is looking at all <br />permitted sites to make sure they comply with current standards. When Nuvemco looks at its future plans please be <br />aware that the Division will want updated stormwater control measures and site specific information regarding ore <br />storage and waste pile storage areas. Geo-chemical analysis of both waste and ore should be done as soon as <br />possible as they may have a bearing on how plans are formulated and reviewed. Under the TR, staff has no issue <br />with increasing the disturbed acreages to match the permitted 9.9 as originally approved. <br />No disturbance should be conducted until the permit boundary issue is resolved. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-241-1117. <br />I & E Contact Address cc: <br />^ CE <br />NAME: Henry Carter ^ BL <br />OPERATOR: Nuvemco LLC. ^ FS <br />STREET: 10771 3200 Road ^ HW <br />CITY/STATE/ZIP: Hotchkiss. CO 81419 ^ HMWMD (CH) <br />