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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-9nnM37 <br />INSPECTION DATE: Ai igist ]A- 20Q8 INSPECTOR=S INITIALS: DR9 <br />OBSERVATIONS <br />This pre-operational inspection was conducted by David Bird and Tony Waldron of DRMS to see the site of <br />proposed activities and to discuss the state of the adequacy review that was in process at the time of the <br />inspection. Present during the inspection were Ryan McHale, Vice-President for Venture Resources, and Patrick <br />Maher, President. The site is located approximately 3 miles north-northwest of Idaho Springs in Clear Creek <br />County. <br />Gold, silver, lead, zinc, and copper are the commodities proposed for production from this site. <br />Other than posting of the required sign, no activity has taken place on the site. The Division and the Applicant's <br />representatives discussed questions related to the adequacy review, including mine waste characterization, <br />hydrology, ore processing, and legal right to enter. The Division's immediate concerns relate to legal right to enter <br />and the apparent seniority of overlapping claims, plus the fact that two written objections have been received <br />pertaining to the legal right to entry. Applicant agreed to clarify the issue in the adequacy review. Longer term <br />concerns relate to mine waste characterization and potential impacts to the hydrologic balance. These <br />concerns cannot be addressed until a later time due to access restrictions to the workings. <br />Additional detail is provided in the first adequacy review, which was sent to the applicant on August 21, 2008. <br />No issues on the ground were observed that need immediate attention. <br />I & E Contact Address <br />NAME: Ryan McHale - Vice President <br />OPERATOR: Venture Resources. Inc. <br />STREET: P_0_ Box 1974 <br />CITY/STATE/ZIP: Idaho Springs. CQ 80459 <br />cc: r CE <br />r BL <br />F FS <br />F HW <br />F HMWMD (CH) <br />SE <br />r WQCD (CH) <br />OTHER <br />attr6uj 6.