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(Page 2) MINE ID # OR PROSPECTING ID # M- INSPECTION DATE INSPECTOR'S INITIALS GRM OBSERVATIONS This was an inspection performed by Carl Mount of the Division of Minerals and Geology (DMG) at the request of the operator. The operator wished to view and discuss possible changes in the mining and reclamation plans at the Bunn Ranch Pit. The landowner, Bob Quillen, was present at the beginning of the inspection since he wants the land left in a slightly different configuration than the reclamation plan calls for. ~ There was a discussion on whether the flood control berms can be left in place after the mining operation is completed. Apparently they can, since the original approved mining and reclamation plans called for the establishment of flood control berms with no prescribed reclamation of those berms (see exhibit D of the original Mine Plan; also see DMG Inspection Reports of 8/28/97 and 5/20/98). What was not specified is what size those berms were to be and what would be done if a berm was breached during a flood. The operator also wants to vary the reclamation plan slightly. This would include not mining some areas and backfilling others that are currently lake in the northern and western parts of the permit area. This may be possible under a technical revision so long as the total surtace area of dry land and lake does not change significantly. As with all these actions, the DMG will make a determination as to whether the change to the permit is an amendment or technical revision when a written application is received. The easternmost pit was inspected and it was noted that the last flood breached the eastern berm (sometime last spring) approximately three hundred feet south of the northeastern corner of the pit. This is listed as a problem below because the berm is apparently not designed to withstand a typical, less than 100 year-24 hour peak Flow flood event. There are several possible solutions to this problem; the berm could be designed to withstand such an event, inflow and outflow structures could be designed and installed which will withstand such an event, or other solution that the operator may propose to solve the problem could be proposed. Whichever solution is chosen must be proposed as a revision to the permit and submitted to the DMG by no later than January 30, 2004. See PB-1 below. Responses to this inspection report should be directed to Carl Mount at the Division of Minerals and Geology, 1313 Sherman Street, Rm. 215, Denver, CO 80203, phone na. 303-866-3863. I & E Contact Address cc: ^ CE NAME: Mr. Eric Reckentine ^ BL OPERATOR: LaFarae West, Inc. ^ FS STREET: 1400 West 64`" ^ HW CITY/STATE/ZIP: Denver. CO 80221 ^ HMWMD (CH) ^ WOCD (CH) ^ OTHER