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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1987-164 <br />INSPECTION DATE: 9-30-08 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS GRM <br />This inspection was conducted as part of the Colorado Division of Reclamation, Mining and Safety normal <br />procedure for a new or amendments to current permits. Connell Resources has submitted an amendment to the <br />Camilletti Pit to add an additional 14 acres into the 112c permit. The pit is located 2 miles east of Hayden, Colorado <br />on the south side of Highway 40. Rick Smith, representative for Connell Resources accompanied the inspector on <br />site. <br />Signage and boundary markers were in place per Rule 3.1.12. The sign was located at the entrance to the site just <br />off Highway 40. Boundaries were marked by fence lines and other features that make the disturbed areas readily <br />discernable. The amendment area is marked by fence lines along the south and east and daylights of the mesa to the <br />north and west. The required public notice per Rule 1.6.2(b) was observed at the access point. <br />The proposed amendment area is currently an alfalfa field on both sides of the access road. No utilities or permanent <br />man made structures other than what is noted in the application were noted. <br />Visual observations of the current operations note the following: <br />The pit currently has highwalls of approximately 1215 feet. It was noted by Mr. Smith that the pit floor had been <br />backfilled approximately 10 feet with crusher fines and other reject materials. Asphalt reject has been neatly piled in <br />a specific area for recycling. The areas around the asphalt plant are free of spills and soil staining. Stockpiles of <br />processed material were noted in several areas. Equipment was moving materials from one location to another. No <br />groundwater or storm issues were observed. No major drainages transect the proposed disturbance area. <br />The map for the amendment application differs from the map supplied with the 2000 conversion. Specifically, the <br />new maps are overlaid on an aerial photo that shows certain areas of disturbance that appear to be outside any permit <br />area. The maps from 2000 show these areas clearly within the permit areas. Reclaimed lands, floor disturbance and <br />the fuel tank areas appear to be outside the amendment disturbance maps. This discrepancy will be covered in the <br />adequacy review once the public comment period is over. It is mentioned here only to document that there is <br />disturbance in this area and the current permit covers it. <br />Overall the proposed amendment area is clear of any structures or man made features. No debris or deleterious <br />materials were noted. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-241-1117. <br />I & E Contact Address <br />NAME: <br />OPERATOR: <br />STREET: <br />CITY/STATE/ZIP <br />Larry Johnson <br />Connell Resources. Inc. <br />7785 Highland Meadows Pkwy <br />Ft. Collins, CO 80528 <br />cc: <br />X CE: Applegate, Ty Thompson <br />? BLM: <br />? FS <br />? HW <br />? HMWMD (CH) <br />? WQCD (CH)