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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1986-004 <br />INSPECTION DATE 12-8-2004 INSPECTOR'S INITIALS SSS <br />OBSERVATIONS <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />No significant infestations of noxious or other problematic weeds were noted on site during this inspection. The site has some <br />Russian knapweed on lands adjacent to it and one tamarisk was noted on site. Mr. Brandstadt was cautioned to monitor the pit <br />closely and keep these noxious weeds from invading the site. <br />No significant erosional features were noted on the affected areas of the site. <br />No equipment is on site at this time, though it is apparent that some material has been excavated from the east highwall and <br />removed from the site. <br />In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved <br />reclamation plan, DMG has updated the reclamation cost estimate (copyenclosed). Clearly, the site is currently under-bonded. <br />Therefore, pursuant to Section 34-32.5-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must <br />be submitted to DMG within 60 days of the mailing date of this report. Please review the enclosed figures as soon as <br />possible and contact our office if any calculation errors are noted. <br />Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction <br />Field Office, 101 South 3f° Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. <br />I & E Contact Address <br />NAME Harold Brandstadt <br />OPERATOR Same as above <br />STREET 2040 G Road <br />CITY/STATE/ZIP Delta, Colorado 81416 <br />cc: <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />