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(Page 21 <br />MINE ID # OR PROSPECTING ID # M-1992-049 <br />INSPECTION DATE 10/22/02 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG's routine monitoring of permitted operations. The Peck <br />Pit is approved for 8 acres affected area. DMG holds S6,000 financial warranty. <br />Evidence of commencement of mining activities was not observed. Mining equipment was not <br />observed within or near the permit area. Flood protection berms were located along both banks <br />of the Uncompahgre River, not related to mining activities. Numerous deer were observed near <br />the permit area. <br />A brief discussion occurred with the landowner, Keith Zimmerman. Mr. Zimmerman did not <br />indicate opposition to limited mining activity, potentially beneficial for flood control. However, Mr. <br />Zimmerman did indicate that the existing access road to the permit area may be inappropriate for <br />heavy truck traffic and therefore, a new access road may be required prior to commencement of <br />mining activities. <br />If the operator must construct a new access route, necessary to support mining activities, such <br />route appears to be defined by the Act and Rules as "affected land" and the existing permit will <br />need to be revised to include the new access road. <br />DMG last reviewed the cost of reclamation on 5/18/99 and determined that the existing 56,000 <br />financial warranty was sufficient to ensure reclamation, assuming commencement of mining <br />activities. However, observations made during this inspection and recorded in this report indicate <br />that mining activities have not yet commenced. Therefore, the existing financial warranty is <br />sufficient to ensure reclamation, <br />Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247- <br />5469. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Charles Ponchak <br />Peck,lnc. <br />P.O. Box 278 <br />Ourav. CO 81427 <br />cc: Tom Gillis, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD ICHI <br />^ SE <br />^ WOCD ICHi <br />^ OTHER <br />