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(Page 21 <br />MINE ID # OR PROSPECTING ID # M-1980-038 <br />INSPECTION DATE 1 24 03 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection was conducted as part of DMG's routine monitoring plan for permitted operations. <br />The Disappointment Valley permit is located on lands administered by the BLM, in portions of the S <br />'/z of the SW '/. of the NW '/<, and in portions of the N '/z of the NW '/< of the SW ''/a, Section 20, <br />T43N, R17W, NMPM, San Miguel County. DMG records indicate that right-of-entry to the BLM <br />lands is maintained through contract COC 066633. The DMG permit is approved for 9.84 acres <br />affected area. DMG holds 55,000 financial warranty. Permit status is active. <br />Mine identification sign was posted at the mine entrance. Permit boundary markers consisted of <br />aluminum capped survey markers and were located for all sides of the permit area except for two <br />points along the northwest side of the permit boundary. Operator drove rebar at the found markers <br />to better identify the permit boundary and indicated that more visible markers would be installed. <br />Public access to the site is controlled by locked gate across the entrance road. Gate and entrance <br />road were well maintained. Mining and reclamation activities were contained within approved <br />areas. Pit area contained various stockpiles of mined materials. Topsoil and overburden were <br />stockpiled along the perimeter of the pit. Pit exhibited internal drainage. <br />Vegetative cover for the topsoil stockpile was not observed. Pursuant to Rule 3.1.9(1), vegetative <br />cover or other means shall be employed for topsoil stockpiles to protect topsoil from erosion, <br />contamination or infestation by noxious weeds. Previous vegetative cover may have been <br />destroyed by last season's drought or by addition of newly salvaged topsoil. Please ensure that <br />topsoil stockpiles are protected in accordance with Rule 3.1.911). <br />Financial Warranty DMG has received and is reviewing a 54,071 increase in the financial <br />warranty. Upon securing DMG approval of the $4,071 additional bond monies, the financial <br />warranty will total 59,071. <br />No problems or possible violations were observed. <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 Ron Ebberts <br />OPERATOR Ebberts Construction <br />STREET P.O. Box 250 <br />CITY/STATE/ZIP Eanar, CO 81325 <br />cc: Harry Posey, DMG <br />^ CE <br />X BLM, Loren Wickstrom <br />^ FS <br />^ HW <br />^ HMWMD (CHI <br />^ SE <br />^ WOCD (CHI <br />^ OTHER <br />