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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1999-074 <br />INSPECTION DATE: 9-7-06 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of The normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. The Brown Derby Mine is located approximately 6 miles north of <br />Parlin, Colorado on Forest Service lands. The inspector was accompanied on site by Bill Gydesen, who is a <br />subcontractor for the permitee. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />The sign is located within the mine opening structure to prevent theft or damage. T-posts mark permit corners and <br />boundary limits. The entrance structure is sound and prevents unauthorized access to either the main entrance or the <br />upper one. <br />Since the last inspection, Precious Offerings has continued the clean up of loose materials and shoring of existing <br />excavation. Year round activities on site are not practical due to elevation and winter weather conditions. Mine <br />activities to date have not resulted in additional materials being deposited on the surface or slopes of existing <br />historical mining features. <br />The road to the site is in fair shape with minor erosion in one spot. The erosion is contained within the roadway so no <br />sedimentation or stormwater issues were noted. Within the permit boundaries there is no noted erosion as the site is <br />solid rock. <br />No trash, petroleum products or other debris were observed on site. The site is very clean and orderly. No equipment <br />was noted on site at this time. <br />The bond was last calculated in October of 1999. Since the site has been more involved in cleaning up existing <br />materials staff will recalculate the bond by merely updating the tasks as agreed upon with the last estimate. <br />No issues are noted or observed at this time, <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-241-1117. <br />I & E Contact Address ec: <br />^ CE <br />NAME: Yolanda Yoder ^ BL <br />OPERATOR: Precious Offerings ^ FS <br />STREET: 200 Alder Lane ^ HW <br />CITY/STATE/ZIP: Boulder, Colorado 80304 ^ HMWMD (CH) <br />^ WQCD (CH) <br />^ OTHER <br />