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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1993-035 <br />INSPECTION DATE 8/08/07 INSPECTOR'S INITIALS ESC <br />OBSBRVATIONS <br />This was a surety/acreage release inspection of the Swan River Resources Mine conducted by <br />Erica Crosby of the Division of Reclamation, Mining and Safety. John Keller of Alpine <br />Rock Company and Brian Lorch of Summit County were present during the inspection. <br />A 112c Mining and Reclamation Permit was issued to Alpine Rock Company on October 4, 1993 <br />for a total permit area of 352 acres. The Division holds a financial warranty in the <br />amount of $34,339.00. <br />The Swan River Resources Mine is located 5 miles northeast of Breckenridge in Summit <br />County, Colorado. The site lies within the drainage of Swan River. The material mined <br />consists of historic gold placer tailings piled along the river bank. The piles range in <br />height from 5 feet to 15 feet. Mining will remove the piles to a depth that ties in with <br />the surrounding grades. No excavation below the original ground level is expected. The <br />permit states that a portable gravel processing plant will be erected on site to crush and <br />screen the gravel. <br />The purpose of the inspection was to inspect the area associated with the acreage release <br />request. Alpine Rock currently has a permit area of 352 acres and is requesting that 190 <br />acres be removed from the permit area. The areas associated with the release request has <br />not been mined, or is currently under another permit (Everist Materials, LLC, Mascot <br />Placer, Permit No. M-1998-052). <br />The undisturbed areas consist of historic gold placer tailings piled along the riverbank. <br />Alpine did not mine these areas due to the high clay content in the piles and other <br />factors associated with legal right of entry. Areas that are currently being mined are <br />under the Everist Materials Mascot Placer permit noted above. A section of the permit <br />owned by the Holt Investments Family Limited Partnership has been graded flat to <br />accommodate the storage of equipment. <br />The remaining permit area of 162 acres is currently owned by Summit County and the Town of <br />Breckenridge. The ultimate plan is for Alpine Rock to transfer the permit to Summit <br />County. Based on the inspection, the Division will approve the acreage reduction request. <br />Notice of approval of the release request will be submitted under separate cover. <br />I & 8 Contact Address <br /> ^ CE <br />NAME Mr. John Keller ^ BL <br />OPERATOR Alpine Rock Company ^ FS <br />STREET 14802 W. 44t° Ave. ^ HW <br />CITY/STATE/ZIP Golden, CO 80403 ^ HMWMD (CH) <br />^ SE <br />^ WQCD (CH) <br />Cc: Carl Mount; DRMS <br />Brial Lorch; Summit County <br />Alex Schatz; Banks & Gesso, LLC <br />