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(page 2 ) <br />MINE ID # OR PROSPECTING ID # M`-2008-006 <br />INSPECTION DATE 04/01/08 <br />INSPECTOR'S INITIALS ESC <br />This was a pre-operation inspection- of the SerFer Pit conducted by Erica Crosby of the <br />Colorado Division of Reclamation, Mining and Safety. Kallie Bauer of Applegate Group, Inc. <br />was present during the inspection. <br />The site is located approximately 2 miles west of the Town of Windsor on the SW corner of <br />Highway 392 and County road 13 in Larimer County, Colorado. The New 112c application was <br />received by the Division on February 7, 2008 and deemed complete for purposes' of filing on <br />February 20, 2008. <br />The proposed SerFer Pit will be 45 acres in size with approximately 30 acres being mined. <br />The remaining area will consist of setbacks from roads and the Cache la Poudre River, utility <br />right-of-ways, and site access roads'. Mining will begin on the south end of the site near <br />the river and will progress in a northerly direction with no more than 15 acres being exposed <br />at any one time. Mining will take place over a span of approximately 3.5 years'. The <br />operator proposes a processing plant on the east side of the site. <br />The site will be dry mined, and a clay liner will be constructed around the perimeter of the <br />mining area. The final reclamation plan is for a water storage reservoir with a storage <br />capacity of approximately 220 ac-ft. The southern- end of the site will be backfilled and <br />reclaimed to the approximate original contours. The operator intends to leave a 400-foot <br />backfilled buffer between the water storage reservoir and the Cache la Poudre River. <br />All structures noted on the Pre-Mining Plan Map appear to have been identified. Adjacent <br />structures include State Highway 392, County Road 13; a concrete ditch, utility lines and <br />poles and wells. The operator will need to address the impacts of mining to the hydrologic <br />balance, in particular the McNaney domestic well immediately east of the pit- and possible <br />flood impacts. The area also encompasses an Division of Wildlife (DOW) easement. The <br />operator will need to describe what measures are to be taken to protect the DOW's interest on. <br />the property. <br />The Division will send an adequacy letter to the operator requesting additional information <br />on the proposed mining and reclamation plan. <br />I & E contact Address <br /> ? CE <br />NAME Richard Connell ? BL <br />OPERATOR Connell Resources, Inc. ? FS <br />STREET 4305 E. Harmony Rd. ? HW <br />CITY/STATE/ZIP Fort Collins; CO 80528 ? HMWMD (CH) <br /> ? SE <br /> ? WQCD (CH) <br />Cc: Carl Mount; DRMS <br />Kallie Bauer; Applegate Group, Inc.