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III. COMMENTS - COMPLIANCE <br />Below are comments on the inspection. The comments include discussion of observations <br />made during the inspection. Comments also describe any enforcement actions taken during <br />the inspection and the facts or evidence supporting the enforcement action. <br />This was a partial inspection conducted by Kent Gorham of the Colorado Division of <br />Minerals and Geology. Ron Thompson of Peak Project Management represented Basin <br />Resources Inc during the inspection. Ground conditions were dry and the weather <br />was cool and overcast. This former underground mine site is reclaimed. <br />Signs and Markers <br />The mine identification sign is located along the road into the site immediately <br />prior to the railroad crossing. Following approval of pending revision TR-21, this <br />information will need to be changed/updated. Mr. Thompson also indicated his <br />plans to remove the mining signs in Wet Canyon. <br />Hydrologic Balance <br />All sediment ponds have been removed from the site. Areas traversed on foot <br />included the main facility reclaimed area, the development waste pile, and the <br />former location of pond 2. No evidence of significant erosion or sedimentation <br />was noted. A small crater or hole associated with a buried culvert was noted in <br />the reclamation near the former tipple location. This feature should be repaired <br />during this coming field season. <br />The water level in ground water monitoring well LA-264 was measured at 59.15 feet <br />below the top of the well casing. <br />3 <br />