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(Page 5) MINE ID # OR PROSP C ING ID # M-QQ-lei2~ INSPECTION DATE G /7~~ INSPECTOR'S INITIALS TAS The following problems (PB) and/or possible violations (PV) (and suggested corrective actions) were identified during this inspection. The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted on the previous page should be notified of all corrective actions taken. PROBLEMS/POSSIBLE VIOLATIONS AND CORRECTIVE ACTIONS CORRECTION DATE 1. There was a total disturbance of 39.24 acres including 18.97 acres of pit disturbance. The mine plan specifies a maximum disturbance of 29.5 acres including 8.0 acres o£ pit disturbance. The operator is not in compliance with the mine plan and the site may not be adequately bonded as the current financial warranty requirement of $95,000 is based on concurrent reclamation and a maximum disturbance of 29.5 acres. CORRECTIVE ACTIONS Submit a revised mining plan and reclamation cost estimate in the form of a technical revision on or before August 19, 2002. The technical revision should allow for a maximum disturbance of at least 39.24 acres, of which 18.97 acres is pit disturbance, and should include an estimate of the reclamation cost that would be incurred by the State of Colorado to reclaim the existing disturbances according to the approved reclamation plan. (The operator may elect to conduct an independent survey of the various disturbances involved by a registered land surveyor or other qualified person and submit the results as part of the technical revision application. The acreage of each disturbance category as noted on Page 2, Item 3 of this report will need to be specified. The reclamation cost estimate will need to include itemized costs for each disturbance category.) August 19, 2002 PS or PV PB TOPIC(S) MP, FN