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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1996-ma <br />INSPECTION DATE: _ n>n ~/na INSPECTOR=S INITIALS: ~A.S- <br />1. A site inspection of the Hidden Valley Pit was made at the request of the operator. The site is located approximately <br />1.8 miles north of Dotsero. Present during the inspection was Mr. ]ason Burkey. <br />2. The Hidden Valley pit is permitted for a total of 183.6 acres. The mining plan specifies conventional excavation <br />techniques with a total disturbance of 29.2 acres. The site will be reclaimed to pastureland. The operator has posted a <br />financial warranty of $83,155. This inspector finds the existing financial warranty to be adequate to reclaim the existing <br />and planned disturbance. <br />3. An entrance sign and permit boundary markers have been posted in conformance with Rule 3.1.12. <br />4. Mining has begun at the Hidden Valley Pit. This inspector noted an excavation of approximately 3-4 acres with pit <br />highwalls of 10-15' in height. All available topsoil has been salvaged and stockpiled around the perimeter to create a <br />visual berm. The berm has also been re-vegetated and stabilized. There was an additional 8-10 acres north of the pit <br />area that had been stripped of topsoil and excavated to create sediment ponds for future use. <br />5. As noted in the operator's August 19, 2004 Annual Report, the pit excavation will be expanded in 2005 up to 10 acres <br />in size. Plant and processing facilities will also be established. <br />6. There were no noxious weed infestations noted within the disturbed area. The operator has an approved weed control <br />plan incorporated into the mining and reclamation plan. <br />7. Any concerns noted in the Division's previous inspection report of June 19, 2002 have been abated. <br />I & E Contact Address <br />NAME: Mr. Jason Burkey <br />OPERATOR: B & B Excavating <br />STREET: PO Box 1729 <br />CITY/STATE/ZIP: Edwards, CO 61632-1729 <br />cc: Carl Mount, DMG (via E-Mail) <br />Mr. Greg Lewicki <br />Greg Lewicki & Associates <br />11541 Warrington Court <br />Parker, CO USA 80138 <br />