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(Page 2) MINE tD # OR PROSPECTING ID # M-1986-002 INSPECTION DATE 2-15-2005 INSPECTOR'S INITIALS SSS OBSERVATIONS This inspection was conducted as part of the Division of Minerals and Geology (DMG) monitoring program for permitted mines in Colorado and to evaluate the current site conditions for use in updating the reclamation cost estimate. The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. The site conditions have changed only slightly since the previous inspection in March of 2001. Mr. Fontenari indicated the site has not been operated since the 2001 inspection due to disputes between the new surface owners and the previous surface owners. Therefore, notice of temporary cessation, per rule 3.13.5 must be submitted. Temporary cessation is allowed for a period of 5 years. Since this site has apparently been idle since May 2001, the first of June 2001 will be the starting date for the five year term, leaving only until June 1, 2006 for this site to sit idle. At the end of the 5 year temporary cessation period, a permittee can either re-activate, reclaim the sire, or request a hearing before the Mined Land Reclamation Board !o ask fora 5 year extension of temporary cessation. Temporary cessation cannot exceed ten years. Previous problems regarding the lack of a hay bale filter dike in the flow channel were repaired in 2001 using silt fence, but fhat silt fence is gone and once again the lack of sediment control is listed as a problem. As stated in previous reports, if the hay bales are ineffective because they get eaten by the cows, it is acceptable for silt fence geotextile to be used at the same location. Sediment control must be re-installed, and maintained at the designated location. The lack of sediment control and the lack of submittal of a notice of temporary cessation must be corrected by March 31, 2005 with photographic documentation of sediment control installation submitted to DMG by that date. This local area is very dry and adjacent mines are experiencing poor success of their revegetation attempts. The native vegetation on this area largely consists of drought and salt tolerant shrubs such as greasewood, four-wing saltbush, rubber rabbiibrush, broom snakeweed, etc. DMG highly recommends that Mr. Fontanari review the current seed mix, composed mostly of grasses, and consider submitting a technical revision to change the species included in the seed mix to include a variety of drought and salt tolerant grasses, (orbs and shrubs. No significant erosional features were noted on the affected areas of the site. No significant infestations of noxious or other problematic weeds were noted on site during this inspection. In an effort to ensure the financial warranty remains adequate to reclaim this site per the requirements of the approved reclamation plan, DMG has updated the reclamation cost estimate (copy enclosed). Clearly, the site is currently under-bonded. Therefore, pursuant to Section 34-32.5-117(4) of the Colorado Land Reclamation Act, adequate financial warranty must be submitted to DMG within 60 days of the mailing date of this report. Please review the enclosed figures as soon as possible and contact our office if any calculation errors are noted. Responses to this inspection report should be directed to Steve Shuey at the Division's Durango Field Office. The address is; Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, phone no. 970-247-5062. I & E Contact Address NAME Rudi Fontenari OPERATOR Western Slooe Flagstone STREET 3316E 3/4 Road -Route 1 CITY/STATE/ZIP Clifton. Colorado 81520 cc: Tom Gillis, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD {CH) ^ SE ^ WOCD (CH} ^ OTHER