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GEOLOGIC APPRAISAL OF NEAR-SIIRFACE MINERAL RESOURCES <br />FONTANARI PROPERTY <br />THREE PARCELS OF 2.0, 10.67, AND 129.2 ACRES <br />MESA COIINTY, COLORADO <br />JIILY, 2000 <br />INTRODUCTION <br />Applications to the appropriate agencies, including Mesa County <br />and the Colorado Mined Land Reclamation Board, are being prepared <br />to request approval to quarry a large deposit of clay, silt, <br />gravel, cobbles, and boulders on about 141.87 acres of property <br />owned by Mr. Rudy Fontanari. The site is located about 4 miles <br />northeast of Palisade, Colorado and near the mouth of Rapid <br />Creek. <br />The purpose of the proposed quarry would be to excavate and <br />process a deposit of clay, silt, gravel, cobbles, and boulders <br />for commercial uses such as riprap, road surfacing, landscaping <br />stone, or other general construction uses. The deposit consists <br />of a wide range of sizes from clay to large boulders and would <br />require processing to meet each particular need. <br />The purpose of this report, as requested by Mr. Rudy Fontanari, <br />is to describe the deposit and estimate the quantities available <br />for mining, and to verify the site as having economic viability <br />as a mineral resource. A field reconnaissance was conducted <br />on July 15, 2000, to map and photograph the site. Reference <br />was made to previous reports prepared by Barnes Geologic <br />Consulting, Inc. titled "Geologic Appraisal Report -- Rapid <br />Creek Riprap Quarry" dated February, 1995, and "Geologic <br />Appraisal of Mineral Resources -- 40-Foot R.O.W. For Proposed <br />Ute Water Pipeline" dated June, 1999. In addition, reference <br />was made to a publication by the Colorado Geological Survey <br />"Mineral Resources Survey of Mesa County - A Model Study", by <br />S.D, Schwochow dated 1978. <br />GENERAL GEOLOGY <br />The subject area lies between the 10,000 foot-high, lava capped <br />Grand Mesa to the southeast and the $ookcliffs, an east-west <br />trending ridge, These two features are separated by a narrow, <br />deep canyon, known as DeBeque Canyon, eroded into sedimentary <br />rocks of the Mesaverde Formation by the Colorado River. The <br />dip of the beds is about 3° to the northeast away from the nearby <br />Uncompahgre Uplift. <br />1 <br />