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(Page 2) MINE ID # OR PROSPECTING ID # M-1987-026 INSPECTION DATE 8/24/05 OBSERVATIONS INSPECTOR'S INITIALS RCO This inspection was pertormed by the Division as part of its monitoring of Construction Materials 110 permits. The operator was contacted about the inspection, but was not present during the inspection. There was no onsite activity at the time of the inspection. The entrance gate was locked, and access to the site was gained on foot. The required permit ID sign was posted at the locked entrance gate. The highwall ranged from 15 to 40 feet in height, with average height of 25 feet, and was estimated to be about 300 feet in length. Active mining appears to be occurring on the north and northeast parts of the highwall. The floor is level. There is a water-filled sump in the center of the pit floor. It is not clear if this is simply for controlling stormwater runoff or a water supply for onsite (drilling?) use. The sump is below grade; it does not have an outlet to release water to the stream system. It is assumed that the sump will be backfilled during reclamation. The material exposed in the face is composed mainly of durable, unweathered mostly black obsidian. As noted in past inspections, there are large-sized inclusions of spherical, easily weathered, light-colored rock ("volcano bombs") that tend to contaminate the obsidian during extraction. There were at least 25 of these spheres, measuring 3 to 6 feet in diameter, visible in the highwall. Mining of the black obsidian is by blasting and hauling the extracted material. The processing is all pertormed offsite at the operator's Canon City plant. There was very little stockpiled obsidian in the pit. There is a large stockpile of topsoil along the southern side of the pit. The stockpile appears to have stable slopes and adequate vegetation at this time. There were no areas above the active highwalls that exhibited recent topsoil stripping. The operator is aware that, with the scarcity of native topsoil but a real need for adequate topsoil to support revegetation, it is important to carefully strip and stockpile the topsoil ahead of the advancing highwall. The bond has not been reviewed since 2000. This office will recalculate the bond and notify the operator of any increase. No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no.970-247-5193. I & E Contact Address NAME Bill Tezak OPERATOR Colorado Quarries, Inc. STREET 270 S. 15`" St. CITY/STATE/ZIP Canon Citv. CO 81212 cc: Harry Posey, DMG ^ CE ^ BL ^ FS ^ HW ^ HMWMD (CH) ^ SE ^ WQCD (CH) ^ OTHER