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(Page 2) MINE ID # OR PROSPECTING ID #: M-1987-n7~ INSPECTION DATE: ng/~na m/23u14 INSPECTOR=S INITIALS: TAS 1. A site inspection of the Lee No. 2 Placer was conducted in response to the operator's request. Present during the inspection was Mr. Stanley J. Conner. The Lee No. 2 Placer is located in lower Russell Gulch, approximately 3 miles southeast of Central City, Colorado. 2. The operator has obtained a mining claim from the Bureau of Land Management (BLM) for a total of 40 acres and has obtained a mining and reclamation permit from the Division for 1 acre of disturbance. The mining claim is specified as Lee #2 Placer Claim/gold/SE 40 acres, NWl/4 Section 20, T3S, R72W, Gilpin County. The operator has posted a financial warranty of $1,200. The post-mining land use is pastureland. 3. The purpose of the inspection was to note the adverse impacts of County Road construction on the Lee No. 2 Placer. There is a new county road being constructed between Blackhawk and Hidden Valley. The road construction passes above the Lee No. 2 Placer, within several hundred feet. This inspector noted a stretch of approximately 150 yards, within the 1 acre of affected land, that had been adversely affected by the road construction. The impacts include large boulders ranging from 3-6' diameter that had rolled downhill from the road outslope onto the Lee No. 2 Placer, mature trees that had been destroyed and/or knocked over by the boulders, and minor erosion of the hillside where the boulders had rolled downhill, Pictures of the impacts were taken and will be sent to the operator under separate cover. 4. The contractor in charge of the road construction is Ames Construction, Inc. As a part of the inspection, this inspector and Mr. Conner went to the field office of Ames Construction, Inc, and discussed the impacts with Steve Lange, project superintendent. Mr. Lange acknowledged the impacts and agreed to remediate the impacts by removing all large boulders and downed/destroyed trees from the placer site, and re-vegetating eroded portions of the hillside where large boulders from the road construction had rolled downhill. Mr. Lange was very cooperative and agreed to have the remediation work completed within 30 days. 5. This inspector assured Mr. Conner that the impacts to the affected land from the road construction will not affect his reclamation cost or reclamation responsibilities. This inspector encourages Mr. Conner to contact the Division in the event that the remediation work is not completed, as agreed to by Mr. Lange. I & E Contact Address NAME: Stanlev J. Conner OPERATOR: PO Box 102073 STREET: Denver, CO 80250-2073 CITY/STATE/ZIP: cc: Carl Mount, DMG (via E-Mail) Bureau of Land Management 2850 Youngfield Lakewood, CO 80215 Mr. Steve Lange Ames Construction, Inc. 18450 East 28 Ave. Aurora, CO 80011