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• (Page 2) • <br />MINE ID # OR PROSPECTING ID # M-83-084 <br />INSPECTION DATE August 8, 1997 INSPECTOR'S INITIALS TAS <br />OBSERVATIONS <br />1. A site inspection was made of the Snowstorm Placer as part of the Division's on-going <br />evaluation of the reclamation cost. <br />2. Primary emphasis during the inspection was on the evaluation of demolition costs. The <br />Division last calculated demolition costs on November 16, 1995. These measurements and costs <br />are still valid. See attached copy. In addition, the Division will add a cost of $5,000 for <br />removal of large non-roadable mining equipment near the operations headquarters area. This <br />inspector estimates that there are 5 flatbed trailer loads worth of equipment to remove. <br />Therefore, the total demolition cost for the Snowstorm Placer will be $50,109. <br />3. An estimate of salvaged topsoil was also made. There appear to be at least 48,000 cubic <br />yars of topsoil available for use in reclamation. This volume would be sufficient to cover <br />20 acres with 18 inches of topsoil. The operator was in the process of salvaging topsoil at <br />the southwest portion of the pit area at the time of inspection. It appears that the <br />operator is performing an exemplary job of stripping off topsoil with incorporated woody <br />debris from the underlying glacial till which is similar in color. <br />4. A brief discussion was held regarding the salvage value of existing mining equipment and <br />the possibility of its use as a form of financial warranty. Attached is a copy of Rule 4 <br />which pertains to performance warranties and financial warranties. Rule 4.12 lists specific <br />requirements for salvage credit. <br />5. It appears that the primary commodity mined at the Snowstorm Placer is sand and gravel, <br />which are considered to be construction materials and subject to the Construction Materials <br />Rules & Regulations. However, the 112 permit was originally granted under the terms of the <br />Rules 6 Regulations for the Extraction of Hard Rock and Metals. In order to clarify which <br />Rules & Regulations are now appropriate for permitting of the Snowstorm Placer, please <br />indicate which is the primary mineral extracted, ie: sand & gravel or gold. Please see page <br />3 for details. <br />I & E Contact Address <br />NAME Mr. Bernhard Free <br />OPERATOR Snowstorm Sand & Gravel, LLC <br />STREET P.O. Hox 388 <br />CITY/STATE/ZIP Fairolav, CO 80440 <br />cc: Jim Stevens, DMG <br />~ CE <br /> ~ BL <br /> ~ FS <br /> ~ HW <br /> ~ HMWMD (CH) <br />~ SE <br /> WQCD (CH) <br />~ OTHER <br />