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MINE ID # OR PROSPECTING ID #: M-90na-QA3 <br />INSPECTION DATE: 111/07/118 INSPECTOR=S INITIALS: JLE <br />OBSERVATIONS <br />This was a normal monitoring inspection of the Valco T. Pit; permit number M-2004-043. This site is located <br />about six miles north west of the town of Trinidad, Colorado in Las Animas County. I, Jared Ebert of the <br />Colorado Division of Reclamation, Mining and Safety, conducted the Inspection. Mr. Mike Venable and Brook <br />Figgins of Venable's Construction, Inc. accompanied me on the inspection. <br />This site is located just south of the Heat T. pit. Both sites exist on a plateau the runs north and south. No mine <br />entrance sign was in place. On October 13th, 2008 the operator sent a picture of the proper mine identification <br />sign in place near the access road. Since photo documentation was submitted to the Division that the mine <br />entrance sign was posted, this issue will not be cited as a problem. The photo documentation is included with <br />this report. <br />With the help of Mr. Veneble and Mr. Figgins, all of the mine boundary markers were located. The permit <br />boundary was mapped with a GPS unit; the area within the boundary was measured to be about 26.81 acres. <br />The permit area is 32.62 acres, based off the GPS map; it would appear that the boundary markers are not all in <br />the correct location. Based on the permit application, the western boundary line should run almost due north <br />and south. Based of the GPS findings, the western permit boundary runs a few degrees off, running south east <br />to north west. The operator may want to re-survey the mine site to ensure the boundary markers are in the <br />correct location. <br />A large flat area that is well stabilized with gravel exists just north of the permit area. The land owner allows <br />Venable's Construction to use this area as a staging ground; however it is not within the permit area. Just south <br />of the staging area the permit area begins. A pit excavation exists on the north west portion of the mine site. <br />The pit highwall was about 10-12 feet high at the time of the inspection and it exists on the east, south and <br />western boundary and the excavation. The operation appears to be proceeding south. Based off the boundary <br />markers, the excavation appears to be within the boundary but it is close to the western boundary line. The <br />operator will need to take care not to go beyond the western boundary. A large stockpile of material is located <br />at the center of the pit excavation. <br />A pile of topsoil is located just north east of the pit excavation. The topsoil pile is vegetated with various <br />species of grasses, weeds and yuccas, and it appears stable. The topsoil has also been stripped ahead of the pit <br />excavation and is in a berm around the highwall. This topsoil berm will need to be segregated from the <br />remainder of the operation and protected from wind and water erosion with vegetative cover if it is not replaced <br />on a graded slope within one growing season. <br />This operation appears to be progressing in accordance with the rules and regulation of the State of Colorado. <br />2