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(Page 2} <br />MINE ID # OR PROSPECTING ID # M-1997-089 <br />INSPECTION DATE 3120/06 INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred from private plane piloted by the permitting consultant, Geological Services and <br />Photoaire. The Stone Gravel Pit is approved for 158 acres permit area with a phased mine plan and <br />contemporaneous reclamation. Affected lands will be reclaimed to support rangeland post-mining land <br />use. DMG holds $17,232 financial warranty. The amount of financial warranty is calculated to address <br />reclamation costs for an approximate 9-acre disturbance. <br />Mining and reclamation activities were active. Mining continues to advance north, as anticipated in the <br />approved permit. Lands located south of the active pit area and previously mined were in various stages <br />of reclamation. Unreclaimed affected lands were approximately 9 acres. Mining and reclamation <br />activities were confined to approved areas. Site appeared stable and compliant with permit conditions <br />and the Act and Rules. <br />No problems or possible violations were observed. <br />Responses to this inspectian report should be directed to the Division of Minerals and Geology, 70° <br />Camino del Rio, Room 125, Durango, Colorado 81301, Attn: Wally Erickson, phone no. 970-247-546 <br />I & E Contact Address <br />NAME Daren Stone <br />OPERATOR Daren Stone <br />STREET P.O. Box 483 <br />CITYISTATElZIP Cortez. CO 81321 <br />cc: Bruce Humphries, DMG <br />^ CE <br />^ BL <br />^ FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />X Doug Conger <br />