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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-2001-023 <br />INSPECTION DATE: 5-6-08 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety for permitted sites. The Camilletti Milner Pit #2 is a I I2c gravel pit located just <br />south of Milner, Colorado. Mr. David Zehner representative for Precision Excavating accompanied the inspector on <br />site. <br />The mine identification sign and affected area boundary markers are in place and in compliance with Rule 3.1.12. <br />The sign is posted at the main access coming off County Road 179. Permit boundary markers of painted t-posts <br />were observed at strategic locations around the pit. <br />Along the northern boundary is an area where cottonwoods were a point of contingent during the permitting process. <br />The inspector notes that irrigation systems are in place and appear ready for use. The trees appear to be healthy <br />although it is difficult to assess at this time of year. Willows and other vegetation within this area appear to be doing <br />well also. <br />The inspector notes that the Annual Report Map submitted in August of 2007 represents current layout, disturbances <br />and reclamation accurately. Current activities noted were excavations in the south central pit area, processing of <br />various materials, stockpiling and materials being trucked off site. <br />Excavation along the southern area is close to Trout Creek. It should be noted that while the creek is flowing no <br />major water issues are noted in the pit. Dewatering is a two stage process with a primary settling pond pumping into <br />a secondary pond. No water is released directly into the creek. <br />The inspector notes a concrete wash out area in the western part of the permit. Concrete washout and reject is <br />deposited in this area for future recycling. There is a pile of recent recycle material and the concrete crusher on <br />standby in this area. <br />Sloping of the reclaimed areas appears to be 3:1. The area reclaimed just east of the settling ponds is noted as being <br />stable. Some topsoil has been replaced on slopes higher up in this area. Slopes reclaimed in the southeast portion of <br />the pit appear to be 3:1. However, stockpiles of materials have been placed in this area so slope angle and stability <br />could not be observed. At this point no revegetation tasks have taken place. The operator should entertain seeding <br />areas that are topsoiled to prevent erosion and finish the reclamation process. <br />The fuel storage tanks and fuel bay are spill free and maintained. No staining of soils was noted. The inspector <br />notes no deleterious debris on site. The area is well maintained. <br />The Division has been notified that Western Surety Company will be canceling the Financial Warranty for this <br />permit. Per the Division's notice to Precision on February 27, 2008 (copy enclosed) a new surety must be in place <br />prior June 24, 2008. As of the date of this report the new surety has not been submitted. This issue is listed as a <br />problem at the end of this report with a corrective action and date. Please note that the problem will be changed to a <br />violation if not corrected per the Rules for failure to maintain an adequate bond. <br />No other problems or issues are noted at this time.