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(Page 2) <br />MINE ID # OR PROSPECTING ID # M-2006-016 <br />INSPECTION DATE 3/20/06 <br />INSPECTOR'S INITIALS WHE <br />OBSERVATIONS <br />This inspection occurred as part of DMG's review process fora 112c application. The site was accessed <br />and inspected from private plane piloted by the permitting consultant, Geological Services and Photoaire. <br />The Perkins Sandstone operation is located approximately 21 miles north of Dolores, along the west rim <br />of the canyon formed by Plateau Creek. The application describes a 39.3 acres permit area with <br />approximately 22 acres affected lands. Surface and subsurface rights are private ownership. Explosives <br />will be utilized but not stored on site. Material processing will include crushing and screening. Affected <br />lands will be reclaimed to support rangeland post-mining land use. No activities were observed at the <br />proposed site or in nearby areas during the inspection. Snow covered the entire site. <br />The site appeared consistent with the descriptions provided in the application. Permanent man-made <br />structures within 200 feet of the permit area appeared limited to CR R (USES Road 514) with bridge over <br />Plateau Creek and right-of-way fence along the north side of the permit area, and a fence along the <br />south boundary which also delineates the property boundary between private property and the San Juan <br />National Forest. The proposed permit area contains pre-law mining disturbances. The pre-law <br />disturbances will be reclaimed by the mining and reclamation activities proposed in the application. <br />Decision date for the application is May 2, 2006. <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 Daren Stone <br />OPERATOR McStone Aggreaate LLC <br />STREET P.O. Box 483 <br />CITY/STATE/ZIP Cortez, CO 81321 <br />cc: Bruce Humphries, DMG <br />^ CE <br />^ BL <br />p FS <br />^ HW <br />^ HMWMD (CH) <br />^ SE <br />^ WOCD (CH) <br />X Douglas Conger <br />