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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1987-028 <br />INSPECTION DATE 08/10/07 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Lilly Mines conducted by Erica Crosby of the Colorado Division <br />of Reclamation, Mining and Safety. Bill Tezak was present during the inspection. <br />The Lilly Mine is located 1 ~ miles north of Garfield in Chaffee County, Colorado. The site <br />is situated at an elevation of 11,000 feet. The permit was issued on March 18, 1988 for 9 <br />acres of disturbance. During the Division's inspection of September 28, 2004, it was noted <br />that the operator was mining outside of the approved permit boundary and the Division <br />required the operator to submit a Conversion Application (CN-O1). CN-O1 was submitted on <br />January 12, 2006 to address the areas outside the permit area, and add new acreage for future <br />mining development. CN-O1 was approved on May 9, 2007 for a total of 97 acres. <br />Mining and reclamation activities were taking place during the inspection. The lower portion <br />of the dump has been graded to 3h:ly and topsoil has been replaced (the 1s` bench, up to the <br />60' level). The operator will need to revegetate the lower bench this fall to ensure that <br />the material is stable. Rip-rap armoring has been installed along the sides of the fill to <br />divert water around the pile. The operator recovered an abundance of topsoil in the dump. <br />This material will need to be salvaged and used for reclamation. The sediment pond was <br />installed at the base of the dump, and no water was noted. <br />Mining involves removing the existing piles and crushing and screening the material. An <br />excavator was actively cleaning the face of the upper highwall. The material was being <br />hauled out of the site during the inspection. <br />The conditions of East Taylor Creek drainage were observed. Due to the recent storm water <br />runoff, sediment deposits have accumulated in the channel. The source of the erosion appears <br />to be the section of the channel that was not lined with rip-rap, just below the road <br />crossing over Taylor Creek. This portion of the channel is very steep, and is likely causing <br />the further down cutting of the channel. The operator will need to armor this section of the <br />channel as approved in the mining and reclamation plan. <br />The reclaimed section of road owned by Colorado Lime was inspected. The area was graded and <br />seeded in the fall of 2006. No vegetation was observed on the reclaimed section. This may <br />be due to the fact that no topsoil was placed on the graded section. With the recent <br />discovery of topsoil buried in the dump, the operator should replace topsoil in this area and <br />reseed with the approved seed mixture. <br />A question arose regarding the dimension of the upper water diversion ditch immediately west <br />of the existing highwall. The specifications of the ditch are as follows; <br />The ditch is a "v" type ditch cut 3' deep and e' in width with steep (1:1) slope <br />on down slope of hill side and lower slope (3 :1) on uphill side of ditch cut. <br />The ditch will be seeded and mulched with the permanent seed mixture to promote <br />revegetation as soon as possible after installation. <br />A review of the file notes that the operator committed to conduct a permeation test in the <br />lower pit area in the spring or early summer of 2007. Please submit the results of the <br />percolation test as soon as they become available. <br />I & $ Contact Addreea <br /> ^ CE <br />NAME Mr. Bill Addison ^ BL <br />OPERATOR Colorado Marble, Inc. <br />STREET 229 Industrial Park Rd NE ^ HW <br />CITY/STATE/ZIP Cartersville, GA 30121 ^ HMWMD (CH) <br /> ^ SE <br /> ^ WQCD (CH) <br />cc: Carl Mount; DRMS <br /> Bob Holloway; Monarch Mountain Marble Co. <br /> Bill Tezak <br />