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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1987-027 <br />INSPECTION DATE 1/16/07 INSPECTOR'S INITIALS RCO <br />OBSERVATIONS <br />This was apre-operation inspection of the area to be added to the existing 110c permit, under conversion application CN-01, <br />which will convert the permit to a 112c permit upon approval. The operator was contacted about the scheduled inspection. <br />This inspector met the operator's representative named on page one in Canon City, and both then drove to the site near <br />W estcliffe. The operator was present during the inspection. The site was not active at the time of the inspection. There was a <br />new snow cover of 8-10 inches, which did not prevent access or the inspection from being pertormed. <br />The expanded permit area in this conversion will include all offsite damaged areas. Since many of the expanded new <br />boundaries are based on existing mining claim corners, which are marked, the operator was able to easily indicate where the <br />112c permit boundaries will be located. All corners were marked with single steel T-posts, and visible from the existing <br />operations bench in the 110c permit. Upon approval of the 112c permit conversion, the operator must submitthe updated bond <br />amount for the conversion to be finalized (and to meet the Board Order) and the new 112c permit corners must be more visibly <br />and durably marked. The operator stated that he would likely install a fence along the boundaries. <br />The site is nearly all gently sloped, with runoff from all areas reporting to existing control structures. Vegetation is uniform <br />throughout, and conforms to the information given in the 112c application. Disturbance to drainage swales will be avoided, <br />including mining, stockpiling and equipment storage. <br />The staged operation was discussed for Phases 1 and 2. Benches at the perimeters will be established (shaped, topsoil ed <br />and seeded) prior to commencing the next lower level. Since the site will be mined in levels rather than with a single highwall <br />advancing across the site, some topsoil will be stockpiled for many years. The operator must ensure that it is adequately <br />protected by vegetation and not allowed to erode into the drainages. <br />Coyote tracks were observed crossing the site. <br />No further items were observed during the inspection. Responses to this inspection report should be directed to the Division of <br />Reclamation, Mining and Safety, 701 Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Bob Oswald; phone no. 970- <br />247-5193. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Bill Tezak <br />Colorado Quarries. Inc <br />275 S. 15t" St. <br />Canon Citv. CO 81212 <br />cc: Tony Waldron, DRMS <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />^ OTHER <br />