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(Page 2) <br />MINE ID # OR PROSPECTING ID #: P-2008-021 <br />INSPECTION DATE: 6-10-08 INSPECTOR'S INITIALS GRM <br />OBSERVATIONS <br />This inspection was conducted as part of the normal program established by the Colorado Division of Reclamation, Mining and <br />Safety for the submission of Notice of Intent. Homeland Uranium, Inc. has submitted a notice for a drill project located in <br />western Montrose County. Mr. Don Hamilton representing the consultant for Homeland accompanied the inspector on site. <br />Robert Ernst and other BLM personnel were on site for a joint inspection of the proposed project. <br />The proposed project is for 15 holes along pre-existing roads. The original notices notes some 11,550 feet of new roads and <br />6,486 of upgrades. Field observations by both the DRMS and BLM note these footages are not accurate. The primary <br />discrepancy is in the definition of a new and significant upgrade. BLM and the Division consider pre-existing roads, even those <br />that are pre-law as disturbed. New roads are those cut across previously undisturbed lands. Significant upgrades are <br />disturbances that basically fall under "if a blade is dropped type of category". This does not include the moving of an <br />occasional boulder or tree fall from pathways. Much of the estimated new roads in the application are established two-tract or <br />better roads which do not need to be included in the estimate. Significant upgrades will be needed to access AM-12, AM-13. A <br />culvert will need to be installed to access AM-04-AM-08 with some minor road work crossing the main ridge. AM-02 access is <br />proposed through a new road with AM-03 and 04. However, a better access was scouted out that would reduce overall impacts. <br />The applicant will need to re-access the total amount of disturbed roads so an accurate reclamation estimate can be calculated. <br />The consultant will be forwarding the information on the culvert size to the Division as soon as possible as well. <br />All the site locations were very well marked. Pads are in the road ways or on fairly level ground. The applicant notes that the <br />type of rig will very likely require less pad disturbance than is estimated. One site (AM-12) was moved up and out of a small <br />drainage but remained within a previously disturbed area. <br />Vegetation along the roads is primarily sparse grasses and a few low level shrubs. Some tree trimming may be necessary but <br />total cut downs did not appear to be necessary or very limited. <br />Erosion on certain aspects of the access roads is primarily due to the lack of water bars and long grades. The BLM and DRMS <br />have asked that water bars be placed in heavily eroded areas to combat the cutting that is taking place. One arroyo crossing will <br />need to be developed but appears to be a cut and fill project. The arroyo crossing will need to be armored or constructed to <br />prevent cutting but full restoration is not required. <br />Overall the project appears to be presented well within the Notice. As noted the only issue is a re-estimate of the total road <br />disturbance so a reclamation liability estimate can be calculated. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and Safety, Grand <br />Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. 970-241-1117. <br />I & E Contact Address <br />NAME: Don Hamilton <br />OPERATOR: Buys & Assoc. <br />STREET: 2580 Creekview Rd. <br />CITY/STATE/ZIP: Moab, UT 84532 <br />cc: <br />X CE: Buys and Associates <br />X BLM: Uncompahgre Field Office <br />? FS <br />? HW <br />? HMWMD (CH) <br />? WQCD (CH) <br />? OTHER