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MINE ID # OR PROSPECTING ID #: M1984-076 <br />INSPECTION DATE: -6/0942002 <br />OBSERVATIONS <br />INSPECTOR=S INITIALS: IFI / <br />AJW/PSH <br />On June 9th' 2008 I, Jared Ebert, Tony Waldron and Peter Hays of the Colorado Division of Reclamation <br />Mining and Safety conducted an inspection of the DDD mine; permit number M-1984-076. This site is located <br />about 16 miles north of the town of Kiowa, in Elbert County, Colorado. At this time, the operator is changing <br />from Robinson Brick to General Shale Brick, this inspection was conducted to take on-site measurements to <br />determine the proper financial warranty for the site. Mr. Greg Knell and Jason McGraw of Robinson Brick <br />accompanied us on the inspection. <br />The finical warranty was determined by estimating approximately what is would cost the Division to reclaim <br />the site based on the measurements and observations noted during this inspection. The office has determined <br />that the appropriate financial warranty be set at the amount of $160,138. Please refer to the following pages <br />outlining how the office determined the appropriate finical warranty. <br />At this time two distinct areas are being mined under this permit; they will be referred to in this report as the <br />West Pit and the East Pit. For the West Pit, approximately 16.06 acres are disturbed. The disturbed area <br />consists of the clay pit, a stockpile pad area constructed out of overburden material, three clay products <br />stockpiles, topsoil stockpiles and a water holding pond for storm water impoundment. For the East Pit, <br />approximately 17.66 acres are disturbed. Much like the west pit, the disturbed area is made up an exposed flat <br />mine bench, a pit, three topsoil stockpiles, one overburden pile, two product stockpiles, and a main stockpile <br />pad that has been stripped of topsoil and another stockpile pad is in the process of being constructed on the <br />north west side of the permit boundary for this site. <br />The post mine land use for this permit is pastureland for grazing purposes. The reclamation for these sites will <br />consist of backfilling the pit excavation with clay from the product piles and overburden material, grading the <br />site to emulate the contours of the surrounding land, spreading the topsoil stockpiles over the area, applying soil <br />amendments, seeding the area with the seed mix approved for this application and mulching the site. <br />Overall, this site seems to be in compliance with the mining and reclamation plan approved for this site. <br />However, a species of Knapweed was noticed throughout this site. The Knapweed should be closely monitored <br />and treated to prevent its spread. Also, sparse vegetation cover was established on the topsoil stockpiles <br />specifically on the tops of the piles and the south facing slopes. The topsoil piles should be re-seeded to ensure <br />the pile is stable to help prevent wind and water erosion.