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(Page 2) MINE ID # OR PROSPECTING ID #: M-~ QRf,-t SQ INSPECTION DATE: May 10,.1nn2 INSPECTORS INITIALS: ai a OBSERVATIONS This inspection was conducted at the request of the Operator, Lafarge West, Inc., to evaluate the applicability of their warranty release request fora 16.9 acre parcel referred to in thier permit as Phase IV. This is the first step in a land swap that will, in effect, exchange this 16.9 acre parcel on the northwest of the property for a like sized parcel located on the south of the permit area. This inspector examined Phase IV and found it to be moderately grazed, but un-affected by mining. The surtace supports a cover of blue gramma or buffalo grass with Cholla and Yucca cactus. The existing cover appears to be approximately 70%, with the remaining 30% is covered in gravel. As this area is un-mined and does not fit into the mining plan, the Division of Minerals and Geology (DMG) finds that this parcel (Phase IV) may be released. The area to be added, Phase V was also inspected and found to be suitable for addition into the affected acreage. Adequacy comments for the permit amendment will be forthcoming under separate cover. The overall active permit area was inspected. Phase I has been reclaimed, and is in fair to poor condition, largely due to the lack of precipitation. This area is not releasable at this time, but may become so following two or three reasonable precipitation years. At this time, Phase II and III are completely disturbed, and Phase V appears to contain the remaining reserves for this pit. No operational problems were noted in the pit at the time of inspection, however, the bond was recalculated based upon complete disturbance in Phases II, III, and V, totaling approximately 49 acres. Based upon this acreage, the bond was calculated to be $73,556.00. This is noted as a problem on the cover page, and is addressed further on page 3 of this inspection report. I & E Contact Address NAME: Eric Reckentine OPERATOR: Lafarge West. Inc. STREET: 1590 West 12th Avenue CITY/STATE/ZIP: henver, m Ro2oa-34th cc: Mr. Jim Stevens ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WQCD (CH)