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(Page 2) MINE ID # OR PROSPECTING ID # M-1979-002 INSPECTION DATE 12-8-2004 OBSERVATIONS INSPECTOR'S INITIALS SSS Noxious and/or problematic weed infestation was observed within the affected area including establishment on stockpiled product material. The infestation of Russian knapweed, Russian olive and tamarisk, if not controlled, will most likely hinder and/or delay successful reclamation of this site and contribute to off-site spreading and establishment of these weeds. Aweed control plan developed in consultation with, and approved by, the appropriate local weed control authority must be submitted as a technical revision to this permit. DMG records do not contain any documentation that any seeding has been done to complete reclamation on any portion of this site. Therefore, according to the new policy regarding tamarisk and Russian olive management, there are no grandfathered areas within this permit area. Tamarisk and Russian olive must be controlled per the Board approved Weed Control Policy dated July 17, 1998 and the Tamarisk and Russian Olive Management at Permitted Mine Sites policy dated January 19, 2005. Weed infestation is noted as a problem, with the corrective action(s) and correction date specified on the last page of this report. Significant progress toward control of on-site weeds must be demonstrated within three years to avoid potential Board action. The site remains substantially the same as during the previous inspection, in terms of mining activity. It appears that the site has been idle for more than 180 days. Lafarge West inc. must submit a notice of temporary cessation, per the requirements of Rule 1.13 or submit documentation that mining activity has taken place during the past 180 days. Apparent lack of mining activity is noted as a problem, with the corrective action(s) and correction date specified on the last page of this report. The processing area is beginning to accumulate a substantial amount of non-mining related materials and junk. The site is apparently being used as a storage site and handling area for a honey operation. Numerous bee hives are stored near the northeast corner of Phase 1, some of which are active hives. The operator is cautioned to monitor this site closely to ensure the honey operation does not accumulate substantial junk in the permit area. Additionally, the site has numerous junk cars (approximately 10 plus a junk tractor) scattered about the permit area and numerous and approximately 50 55 gallon drums are stored near the honey operation mixed with miscellaneous otherjunk. The permit does not include provisions for storage of junk cars, tractor, drums, and other miscellaneous junk. Additionally, the reclamation bond does not include bonding for removal and disposal of these items. Disposal costs for this equipment and junk will be included in the updated reclamation cost estimate resulting from this report. These non-permitted items are noted as a problem, with the corrective action(s) and correction date specified on the last page of this report. A 5`h wheel travel trailer has been set up on site, but has not apparently been used recently. It does not appear that any discharge from the sewage or grey water storage has occurred, but the permittee is cautioned to ensure groundwater is not contaminated by any waste discharge from this trailer. The permit does not include provisions for on-site housing in mobile units. The permit must be revised either to include the housing trailer, including proposed waste disposal, or the trailer must be removed from site. Set up of the trailer for use within the permit area is noted as a problem, with the corrective action(s) and correction date specified on the last page of this report. 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 80 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 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 Eric Reckentine ^ BL OPERATOR Lafarge West. Inc. ^ FS STREET 10170 Church Ranch Wav, Suite 200 ^ Hyy CITY/STATE/ZIP Westminster. Colorado 80021 ^ HMWMD (CH) ^ SE ^ WOCD (CH) ^ OTHER