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(Page 2) <br />MINE ID # OR PROSPECTING ID #: ~~-~nnn-> >8 <br />INSPECTION DATE: i~ ~r,P ~ 5 inns INSPECTOR=S INITIALS: Q IW <br />OBSERVATIONS <br />This inspection was conducted as the result of a Succession of Operator and Transfer of Permit Application <br />received on April 26, 2005. The site is located approximately 13 miles northwest of Walsenburg, Colorado off of <br />Colorado Highway 69. The primary reason for conducting an inspection during a transfer request is to verify <br />that the existing financial warranty is adequate to cover the existing and future reclamation liability as well as <br />to verify that mining and reclamation are occurring per the original application approval. <br />The affected area of this permit covers 71 acres within a permit area of 80 acres. The mining plan is to occur in <br />ten-acre continuous phases eventually reaching 71 acres. The site is located just up out of and south of the <br />Huerfano River Valley flood plain on a broad dry terrace. The existing financial warcant~ is $1 15,400. This bond <br />calculation was conducted by DMG in 2000. This site has been disturbed and a small but fairly deep pit is <br />present on the site. In addition, there are several small stockpiles of processed material, overburden and <br />topsoil within an approximately 4-acre area. Given that the size of the disturbance that has occurred to date <br />is well within the allowable 10-acre phase size, and review of the original bond calculation reveals no significant <br />increases, the financial warranty is deemed To be adequate. Therefore the transfer frorn DG Huskin to APC <br />Southern Construction is approved with a new replacement bond of $115,400.00. <br />I & E Contact Address <br />NAME: D G Huskin <br />OPERATOR: D G Huskin <br />STREET: P n Box Rt <br />CITY/STATE/ZIP: watmnra Cn R1R53 <br />cc: Richard Pounds-APC <br />Southern Construction <br />r CE <br />r BL <br />r FS <br />r HW <br />r HMWMD (CH) <br />r SE <br />r WOCD (CH) <br />r OTHER <br />