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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1982-207 <br />INSPECTION DATE 7/18/02 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Swan River Resources Mine conducted by Erica Crosby of the <br />Division of Minerals and Geology. Greg Gerganoff of Alpine Rock Company was present <br />during the inspection. <br />A 112c Mining and Reclamation Permit was issued to Alpine Rock Company on October 4, 1993 <br />for a total permit area of 352 acres. The Division holds a financial warranty in the <br />amount of $34,339.00. <br />The Swan River Resources Mine is located 5 miles northeast of Breckenridge in Summit <br />County, Colorado. The site lies within the drainage of Swan River. The material mined <br />consists of historic gold placer tailings piled along the river bank. The piles range in <br />height from 5 feet to 15 feet. Mining will remove the piles to a depth that ties in with <br />the surrounding grades. No excavation below the original ground level is expected. The <br />permit states that a portable gravel processing plant will be erected on site to crush and <br />screen the gravel. <br />No mining was taking place during the inspection. Mining has occurred in the parcel of <br />property near Muggins Gulch. In areas were piles were mined, the slopes blend in well to <br />the surrounding topography. No screening plant or mining equipment were noted on site. <br />A mine identification sign was posted at the entrance to the site. The Division was <br />unable to locate the permit boundary markers. According to Rule 3.1.12 of the Rules & <br />Regulations, the boundaries of the affected area will be marked by monuments or other <br />markers that are clearly visible and adequate to delineate such boundaries. The operator <br />will need to post permit boundary markers and submit proof of compliance in the form of <br />photographs by September 17, 2002, <br />I & E Contact Address <br /> ^ CE <br />NAME Mr. Greg Gerganoff ^ BL <br />OPERATOR Alpine Rock Company ^ FS <br />STREET 14802 W. 44`~ Ave. ^ HW <br />CITY/STATE/ZIP Golden, CO 80403 ^ HMWMD (CH) <br /> ^ SE <br /> ^ WQCD (CH) <br />Cc: Carl Mount; DMG (via electronic transmission) <br />