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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1992-049 <br />INSPECTION DATE 11/23/05 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS WHE <br />This inspection was conducted from air photos taken on November 23, 2005. Three photos accompany <br />this report. <br />As shown in the photos, the permit area is located in a reach of the Uncompahgre River where the <br />stream transitions from a single thread to a braided system. As typical of braided stream segments, the <br />active floodplain is wide, sparsely vegetated, and contains multiple high-water channels. Remnants of <br />flood control levees border portions of the east and west banks. The river has eroded portions of the <br />levees, leaving isolated segments of levee within the floodplain. These flood control levees were <br />constructed along what appeared at the time to be the riverbanks, but in fact lie sometimes at the edge <br />and sometimes within the active floodplain. <br />The permit area is located almost entirely within the active floodplain. Evidence of commencement of <br />mining activities was not observed. A newly constructed residence with access road from Hwy 550 was <br />evident. <br />The Peck Pit is approved for 8 acres affected area. Approved activities are limited to extraction of alluvial <br />materials from gravel bars within the Uncompahgre River channel and stockpiling of excavated materials. <br />DMG holds $3,000 financial warranty to address the cost of reclamation for the first year of active <br />operations. Since mining activities have not commenced the existing financial warranty appears <br />sufficient to ensure reclamation for the first year of operations. <br />No problems or possible violations were observed. <br />Responses to this inspection report should be directed to.the Division of Minerals and Geology, 701 <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-5469. <br />I & E Contact Address <br />NAME <br />OPERATOR <br />STREET <br />CITY/STATE/ZIP <br />Keith Zimmerman <br />Vista Verde Village, LLC <br />17449 Hwy 550 <br />Ridpwav CO 81432 <br />cc: Harry Posey, DMG <br />X COE, Sue Nall, Grand Junction Office <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD {CH) <br />