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MINE ID # OR PROSPECTING ID #: m-2006-031 <br />INSPECTION DATE: 5/24/2006 <br />(Page 2) <br />OBSERVATIONS <br />INSPECTOR'S INITIALS: Cmr <br />This was apre-operation inspection conducted by Chris Rowe of the Colorado Division of Minerals <br />and Geology. Also present on the inspection was Dan Sier, Phil Patterson, John O'Neill, Joe <br />Johnson, and Brian Cobb as the Applicant/Operator representatives. <br />The Mine is located on Forest Service land near La Salle Pass off of Highway 24 west of Wilkerson <br />pass. The site is off of Forest Service Road 226 <br />The proposed mine site is in a short grass meadow and bordered by a grove of aspen and spruce. <br />The dominant feature on site is a trench excavation and associated overburden pile. The trench is <br />approximately 80 feet long and 30 feet wide, with a similar sized overburden pile. The Division did <br />not permit this mine (Rule 3.3.1). However, the Forest Service permitted mining at this site for one <br />year in 1995. The Forest Service holds a bond for reclamation of the site in the amount of $3,200. <br />More recently the original Operator (Mr. Bill Howard) sold the BLM load claim to the current owner. <br />The statute of limitations has run out on pursuing the mining without a permit violation. Mr. Howard <br />will be notified that in the future a Mined Land Reclamation Permit will be needed to mine in <br />Colorado. <br />The current Operator are not liable for the existing pit, however the proposed mine area is expected <br />to expand the existing pit. <br />The proposed mine site boundary was not marked. As part of the adequacy review process the <br />Applicant/Operatortyill mark the boundaries and provide revised mine location and other required <br />maps, information, and documentation (Rule 3.1.12). <br />See the adequacy review process documents for further details about the site and the mine plans. <br />Besides the boundary markers, there were not any problems noted during the inspection. <br />Enforcement and Inspection Contact Address <br />NAME: Steel Rose 1 <br />OPERATOR: Phil Patterson <br />STREET: 2436 N Cascade Ave <br />CITY/STATE/ZIP: Colorado Sorinos. CO 80907 <br />cc: <br />U.S. Army Corps of Engineers <br />U.S. Bureau of Land Management <br />x_ U.S. Forest Service <br />CO Department of Transportation <br />CO Hazardous Materials and Waste Division <br />CO State Engineers Office <br />CO Water Quality Control Division <br />x OTHER: Dan Sier <br />