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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1987-028 <br />INSPECTION DATE 05/19/06 INSPECTOR'S INITIALS ESC <br />OBEBRVATION3 <br />This was an inspection of the Lilly Mines conducted by Erica Crosby of the Colorado Division <br />of Reclamation, Mining and Safety. Bill Addison, Bob Holloway and Bill Tzak were present <br />during the inspection. <br />The Lilly Mine is located 1 i4 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 />The purpose of the visit was to assess the site prior to the beginning of the 2007 <br />construction season. The operator intends to begin reclamation of the waste pile and <br />continue working on the relocation of FR 228 around the permit area. The Division informed <br />the operator that the US FS must concur with the relocation of the road, and it must be <br />approved by the Division in the form of a revision to the permit. <br />Due to inclement weather during the inspection, the site was not completely inspected. <br />Rather the Division answered questions regarding the approval of CN-O1 and any outstanding <br />issues that need to be addressed. <br />I & 8 Contact Address <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 />