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MINE ID # OR PROSPECTING ID #: M-2006-034 INSPECTION DATE: 5/2412006 (Page 2) OBSERVATIONS INSPECTOR'S INITIALS: CMR This was apre-operation inspection conducted by Chris Rowe of the Colorado Division of Minerals and Geology. Also present on the inspection was Joe Dorris the Applicant/Operator. The Mine is located in the Crystal Creek drainage approximately 8 miles north of Lake George. The site is in area that has had extensive exploration of gems dating back over 100 years. The proposed mine site is located on four separate BLM load claims, and is located on Forest Service land. The proposed mine is located on 14 separate proposed permit sites. The sites are between 0.12 and 1.1 acres. Two four-by-four roads go to most of the sites, with some of the sites are accessible by going cross-country across the forested hillside. The hill slopes range from around 5% to over 25%. The area was burned during the Hayman fire; with some sites having little or no burn and others having high intensity burns. The majority of the 14 sites have some sort of previous mining activities. This ranges from small hand dug pits to at least a couple of the sites were heavy equipment was used to excavate larger pits. Many of the hand-dug pits have not been reclaimed. It appears that the larger mechanical excavations have generally had some level of reclamation. The level of disturbance ranges from less then 10% to over 90%. In one case, site H, was almost completely mined and reclaimed. There are other adjoining BLM claims, and Forest Service NOI's (Notice of Intent) and two other permitted mine sites, Crystal Jack Mining and Glacier Peak Mining There was not any water noted on site, however several of the working areas go up to the edge or overlap with hillside gullies that in large storms would carry water. The Operator has agreed to stay out of these gullies. All of the sites inspected had labeled wooden stakes at the corners of the sites. The proposed mine had the proper marker at the base of the two four by four access roads. See the adequacy review process documents for further details about the site and the mine plans. There were not any problems noted during the inspection. Enforcement and Inspection Contact Address NAME: Joe Dorris OPERATOR: CO Calumet Company Inc. STREET: 2920 Cedar Hts. Dr. CITY/STATEIZIP: Colorado Sorinas. CO 80904 cc: U.S. Army Corps of Engineers U.S. Bureau of Land Management X U.S. Forest Service CO Department of Transportation CO Hazardous Materials and Waste Division CO State Engineers Office CO Water Quality Control Division OTHER: