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(Page 2) MINE ID # OR PROSPECTING ID # M-1998-022 INSPECTION DATE 7-18-2003 INSPECTOR'S INITIALS SSS OBSERVATIONS This was a routine monitoring inspection conducted as part of DMG's ongoing monitoring program for permitted mines in Colorado. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12, though some markers had fallen down and needed to be re-installed. No infestations of noxious or other problematic weeds were noted on site during this inspection. No erosional features were noted on the affected areas of the site. The road leading up the hillside from the west end of the lower bench has been started and appears to be located in the right location. The oid highwatl area near the entrance has been backfilled to less than a 2H:1 V slope as required by the permit. The backfill material appears to have enough soil in it that the operatorwas instructed to perform required revegetation tasks on this area. Vegetation seems to come in naturally on this soil exposed from underthe talus rock. Therefore, seeding should be successful in establishing a vegetative stand on these regraded slopes with exposed soil. Stormwater control features were not in place as specified in the mining plan. Silt fences and check dams are to be placed in ditches along the bench, to settle out fines prior to discharge into the existing drainage channels. Because of the porous nature of the site location, no evidence of running or ponding water is apparent. However, in the case of a significant storm, some of the exposed soils may be subject to erasion. Therefore, at least one silt fence/check dam structure should be installed where drainage leaves the affected areas. Some silt fence was located on the lower side of the initial harvesting area and access road. However, the silt fence was installed above the surface, without being keyed in to filter any water flows. The operator indicated that this fencing was installed to catch rock or other large material that might roll down the slope during the recent regrading of this location. This silt fence should now be re-installed, possibly at the crest of the main bench, with the bottom keyed in to capture and filter any flows that may run off the backfilled highwatl and regraded bench areas. The reclamation cost estimate was not recalculated as part of this inspection. The current estimate was recalculated less than three years ago and the operation is incompliance with the approved mine plan and reclamation plan. Therefore, the current financial warranty is believed to be adequate to reclaim the site per the approved reclamation plan. Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. I & E Contact Address cc; ^ CE NAME Robert M. Gallegos, Jr. ^ BL OPERATOR Gallegos Corporation ^ FS STREET P. O. Box 821 ^ Hyy CITY/STATE/ZIP Vail. Colorado 81658 ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER