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(Page 3) <br />MINE ID # OR PROSPECTING ID # M-1986-076 <br />INSPECTION DATE 10/5/06 <br />INSPECTOR'S INITIALS RCO.ICAP <br />The inside the lower portal is the location of the required groundwater sampling. The portal has a new door, thatwas locked on <br />the day of the inspection. An electric cable (for the pump) and water line (up to the mill tank) extend from the adit up the hill. <br />There is a slow trickle of surface discharge from the adit door, captured in the sediment structure, where is percolates into the <br />ground. There is no surface discharge from the site. <br />The Environmental Protection Plan (EPP) requires two water quality samples from each of two sites each operating season. All <br />2006 samples have been submitted and they appears satisfactory. The operator was recently approved for a revised surface <br />water sampling location, known as the "cabin site" This new cabin site location was inspected: it is about 100 feet down an old <br />side road to the creek crossing. The creek was flowing about 10-20 gpm. <br />No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of <br />Reclamation, Mining and Safety, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970- <br />247-5193. <br />I & E Contact Address <br />NAME James Bender <br />OPERATOR DGMC <br />STREET 5529 US Hwv64 <br />CITY/STATE/ZIP Farmington. NM 87401 <br />cc: Tony Waldron, DRMS <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />