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<br />(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1987-028 <br />INSPECTION DATE Mav 31, 2005 INSPECTOR'S INITIALS CBM <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of Minerals and <br />Geology. Regardless of how general inspection topics are marked on the first page with regards to this report, those markings <br />do not in any way change Board Orders with corrective actions issued as a result of violations found at the December 15, 2004 <br />Board meeting and corrective actions contained in Board Orders MV-2004-009 (Mining without a permit), MV-2004-010 (failure <br />to minimize disturbance to the hydrologic balance), and MV-2004-011 (failure to salvage topsoil). <br />This was a follow up inspection to determine the general compliance at the mine operation and what specifically should be <br />done at the site this summer to mitigate possible environmental degradation from mining activities being outside the present <br />permitted area. From the inspection and discussion on site with the operator's consultant, Ken Klco of Azurite, Inc., it was <br />agreed that the hydrologic balance and sedimentation from the mining operation to Taylor Gulch was the most critical aspect to <br />concentrate on if the deadline for submittal of a 112c conversion application is to be delayed. The operator representative <br />committed to supplying a plan for reducing or eliminating further sediment transport into Taylor Gulch this summer. Final <br />dispensation of Taylor Gulch and sediment control off of the 112 area will be addressed in the conversion application. <br />The operator is to request a change in the Board Orders effective January 21, 2005 (date signed and issued) at the June 2005 <br />Board meeting. Those Board Orders required the operator to obtain approval of a section 112 permit for all disturbed areas by <br />no later than 180 days after the signature date of the Orders (July 25, 2005). The operator has requested a 90 day extension to <br />the Board Ordered due date to complete the 112 conversion process. If the Board approves this request, the new due date for <br />112 conversion approval would be October 19, 2005. The operator may want to consider requesting a 120 day extension to <br />allow extra time in case an objection to the application is received. <br />As a follow up to this inspection, the Division of Minerals and Geology received a FAX from Azurite, Inc. indicating what the <br />operator planned to do this coming field season in order to mitigate sedimentation of the Taylor Gulch drainage. <br />Responses to this inspection report should be directed to Carl Mount at the Division of Minerals and Geology Denver Office, <br />phone no. 303-866-3863. <br />I & E Contact Address cc: D Erica Crosby, DMG via electronic mail <br />^x Mr. Ken Klco <br />Azurite Inc. <br />10001 County Road 12 <br />P.O. Box 338 <br />Cotopaxi, CO 81223 <br />^ CE <br />NAME: Mr. Bill Addison ^ BL <br />OPERATOR: Colorado Marble L.L.C. ^ FS <br />STREET: 229 Industrial Park Road NE ^ HW <br />CITY/STATE/ZIP: Cartersville. GA 30121 ^ HMWMD (CH) <br />^ WOCD (CH) <br />^ Other <br />