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(Page 2) <br />MINE ID # OR PROSPECTING ID #: r~~nn~_t tg <br />INSPECTION DATE: t<~~e L4'2MS INSPECTOR=S INI''IALS: A IW <br />OBSERVATIONS <br />This inspection was conducted as the result of a Succession of Operator and Transfer of Permit Application <br />received on April 26, 2005. The site is located approximately 13 miles northwest of Walseriburg, Colorado off of <br />Colorado Highway 69. The primary reason for conducting an inspection during a transfer request is to verify <br />that the existing financial warranty is adequate to cover the existing and future reclama'ion liability as well as <br />to verify that mining and reclamation are occurring per the original application approvcl. <br />The affected area of this permit covers 144 acres within a permit area of 300 acres. The mining plan is to occur <br />in three phases ranging in size from 44 to 53 acres. Two of the phases encompass a small upland mesa or ridge <br />and the third is just south of the Huerfano River on a broad terrace just up out of the active flood plain. There <br />has been no activity to date at this site. The existing financial warranty is $67,800. This bond calculation was <br />conducted by DMG in 2002. Given that no disturbance has occurred at this site, and review of the original <br />bond calculation reveals no significant increases, the financial warranty is deemed to be adequate. Therefore <br />the transfer is approved with a new replacement bond of $67,800.00. <br />I & E Contact Address <br />NAME: D G Ruskin <br />OPERATOR: D G Hoskin <br />STREET: a n Rr~x ~I <br />CITY/STATE/ZIP: WPtm~ra rn R19.53 <br />cc Richard Pounds-APC <br />Southern Construction <br />t CE <br />I' BL <br />t FS <br />T HW <br />I' HMWMD (CH) <br />P SE <br />t WQCD (CH) <br />T OTHER <br />