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MINE ID # OR PROSPECTING ID#: M-1998-053 PAGE: 2 INSPECTION DATE: 6-1-01 INSPECTOR'S INITIALS: ACS OBSERVATIONS This was a pre-operational inspection of the Mascot Placer site related to the permit conversion CN-001 application. The CN-001 application was submitted by Everist Materials to convert the existing 9.9 acre 110c limited impact permit to an 89 acre 112c regular permit. Within the proposed 89 acre permit area, there exists 42 acres of land previously disturbed by historic dredge boat mining. This 42 acre area is the only area proposed to be mined under the terms of the CN-001 application. The area to be mined consists entirely of alluvial sand, gravel, and cobble dumped in large piles following the historic dredging. It was observed that the 99 acre permit area has been accurately and thoroughly marked. It was further observed that the 42 acres covered by dredge piles are accurately depicted on the mining and reclamation plan map provided with the CN-001 application. The entire perimeter of the dredge piles within the Mascot Placer boundaries was inspected during this site visit. Numerous comment letters both from area citizens and from other government agencies were received during the public comment period for CN- 001. Some of these letter expressed concern with the potential for adverse impacts to wetlands and wildlife that could occur if CN-001 is approved. To an extent, observations relating to wetlands and wildlife became the focus of this inspection. Numerous photographs were taken during this inspection, and prints of these photos along with descriptive captions are enclosed with this report. wetlands within the boundaries of the Mascot Placer have not been delineated. However, it was observed that no wetlands exist within the 42 acres to be affected by the proposed mining operation. That is because the 42 acres are completely covered with free draining dredge rock that precludes the development of hydric soil. There are wetlands immediately adjacent to the dredge piles, and in some locations the toe of the dredge piles is right at the edge of the Swan River Channel. Avery few willows were observed growing through the edge of the dredge piles, but this alone is not indicative of wetlands. In addition to the Swan River, other water bodies observed in proximity to the proposed mine area are three ponds along the west edge of the dredge piles; these ponds are accurately depicted on the mining and reclamation plan map included with the CN-001 application and are associated with Georgia Gulch, a tributary to the Swan River that was either not flowing or was flowing subsurface at the time of this inspection. There is also a beaver pond in the main stem of the Swan River located to the east of the dredge piles. This pond is also accurately depicted on the mining and reclamation plan map. It was discussed with the Operator that careful mining methods must be employed when removing the last of the dredge rock along the perimeter of the dredge piles. This is necessary to prevent accidental movement of dredge rock into the proximal wetlands, stream, and ponds. The Operator stated that a backhoe would be used to mine the edges so that dredge rock will be pulled back into the previously disturbed land. It should be noted that the mining plan requires leaving low berms of dredge rock around the