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(Page 2) MIME ID # OR PROSPECTING ID #: rn-ia~~-ain INSPECTION DATE: nFCiama INSPECTOR=S INITIALS: ~AS- 1. A site inspection of the Cross Mine was made as part of the Division's on-going 4-year inspection program. The Cross Mine is located approximately 5 miles west of Nederland at an elevation of approximately 10,000 feet. Present during the inspection was Tom Hendricks. Weather was inclement and raining periodically throughout the inspection. 2. /t mining and reclamation permit for the Cross Mine was issued on November 3, 1980. The site is permitted for a total surface disturbance of 1.0 acre. The mine plan specifies underground mining via shrink-stoping mining techniques where waste rock is utilized as stope-fill in the mine. There will be little or no ore stockpiled at the mine site. The operator has po<_~ted a financial warranty of $15,400. The site will be reclaimed to a home site and wildlife habitat. This inspector finds that the existing financial warranty is adequate to complete the terms of the approved reclamation plan. 3. Since the last inspection by the Division on June 16, 1999, the operator has a) processed technical revisions which address the drill hole program and confirm that existing buildings will remain during final reclamation, b) completed construction of the water treatment plant, and c) completed a significant amount of reclamation tasks at both the Cross Mine and the Smuggler Mine. This inspector notes that the operator has done an excellent job of going well beyond the scope of required reclamation activities and has made a significant contribution toward reclaiming historic mining disturbance in the Caribou area. Underground mining activities have not yet begun. The core drilling program is on-going anti the operator has done a commendable job in reclaiming drill sites as soon as practicable. (Recent Annual Reports anti the operator's February 4, 2004 Colorado Dept. Health SEP Report provide a detailed explanation of all the various reclamation activities completed). 4. Reclamation work inspected included the following: 1) The Cross Mine dump was contoured back with the establishment of a buffer zone along Coon Track Creek, 2) 30 dump truck loads of topsoil and mulch were placed on the Cmss Mine dump and seeded with the approved native grass seed mix, 3) Excess dump rock was rnntoured into the hillside behind the Cross Mine to reclaim old surface workings, and 4) backfilling and sealing of exploration core drill holes arni re-seeding exploration drill pad areas with the approved native grass seed mix. 5. 'The water management system at the Cross Mine was functioning as designed during the inspection. The water management system includes two (2) lined ponds and a small water treatment plant below the lower pond to add lime arni adjust the pH of mine process water to near neutral. The upper pond was constructed as a catchment basin for starmwater. The operator discharges process water offsite via an approved Water Discharge NPDES Permit from the Colorado Department of Health and maintains a rigorous water quality monitoring and reporting program. 6. Signs and markers were posted as required by Rule 3.1.12. 7, Mr. Hendricks has done an exemplary job of maintaining a "clean" operation in compliance with all applicable state and federal regulations as well as contemporaneous reclamation of permitted disturbed areas and surrounding historic mining disturbance. I 8~ E Contact Address NAME: Thomas S, Hendricks OPERATOR: Calais Resources Colorado Inc. STREET: Cross Mine Roari. PO Box 653 -Caribou CrfY/STATE/ZIP: Nederlandi_ CO 80466 cc: Carl Mount, DMG (via E-Mail)