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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1984-026 <br />INSPECTION DATE 4/15/04 <br />INSPECTOR'S INITIALS RCO <br />A house and related outbuildings exists in the SW portion of the amended area. It is owned by the operator, but will be avoided <br />during the course of mining, and remain after reclamation. It is currently occupied. <br />The surface of the amendment area exhibits the reddish soils typical of the area, and includes a fair amount of cobbles. Rocky <br />soil is suitable for revegetation, though screening them out may make topsoil replacement and drilling seed easier. Thin range <br />vegetation typical of unirrigated land are uniformly scattered across the site. These include tall sage, rabbitbrush, sand <br />dropseed, and blue grama. There is a small amount of stunted tumbleweed. <br />The existing bond amount is $187,217, and is adequate at this time. The bond amount will be recalculated at the time of <br />amendment approval, and the revised figures will be forwarded to the operator for review. The operator is reminded that by <br />adhering to the mining plan, the bond may be minimized. This includes keeping pit walls sloped as closely as possible to the <br />final reclamation gradient, and promptly replacing topsoil and revegetating. <br />A!I amendment application adequacy review questions from this office will be covered by letter and mailed to the operator and <br />his agent under separate cover. <br />No further items were observed during the inspection. There are no problems at this time. Responses to this inspection report <br />should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: <br />Bob Oswald; phone no. 970-247-5193. <br />I & E Contact Address cc: Harry Posey, DMG <br /> ^ CE <br />NAME Rock I. Southwav ^ BL <br />OPERATOR Southwav Construction Co. ^ FS <br />STREET 117 White Pine Dr. ^ HW <br />CITY/STATE2IP Alamosa. CO 81101 ^ HMWMD (CH) <br /> ^ SE <br /> ^ WOCD (CH) <br /> ^ OTHER <br />cc: Joe Gagliano, L J Development, Inc.,159 Tiffany Ct., Pueblo, CO 81005 <br />