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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-1991-146 <br />INSPECTION DATE 7/14/04 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG's routine monitoring of 110 in-stream permitted sites and to <br />acquaint Steve Brown, with the Attorney General's Office, with west slope operations. <br />The ZMK Gravel Pit is located approximately 5 miles north of Ouray, in portions of the NW '/< of the SW <br />'/o of Section 2, T44N, R8W, NMPM, Ouray County. The reclamation permit is approved for 8.72 acres <br />affected area, for the extraction and processing of alluvial materials from the Uncompahgre River <br />channel. Affected lands will be reclaimed to support industrial post mining land use. DMG holds $3,750 <br />financial warranty. Permit status is active. Mining activities appeared dormant during the inspection. <br />Mine identification sign and permit boundary markers were posted. Mining and reclamation activities <br />were confined to approved areas. The three piezometers, monitored for groundwater elevation, <br />appeared intact. All portions of the flood control dike, previously eroded during the spring runoff, had <br />been repaired. Operations had not allowed the river to enter the pit during this 2004 runoff season. Pit <br />appeared dry and fully recharged from the 2003 runoff season. <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 />Richard Zannett <br />ZMK Construction. Inc. <br />P.O. Box 1817 <br />Ouray, CO 81427 <br />cc: Harry Posey, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />X R. Larson, Monadnock Mineral Services <br />