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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1292Q5n <br />INSPECTION DATE: 1Q/21/(18 INSPECTOR=S INITIALS: Mar <br />OBSERVATIONS <br />The inspection of the Timnath Connell Pit was conducted by Michael Cunningham and Tony Waldron of DRMS, <br />along with John Warren representing the Operator. The Timnath Connell Pit is located approximately 1 mile <br />south of Timnath, Colorado on the east side of Highway 1-25. The permitted acreage encompasses 157.6 acres <br />and the Maximum Allowed acreage for disturbance is 67.2 acres. <br />The inspection was conducted as part of the Division's regular monitoring program. The permit sign was posted <br />at the mine site entrance and was clearly visible from the road. There were no mining activities occurring at the <br />time of the inspection. The inspection began at the Crusher Site and Stock Pile Area, which is located on the <br />west side of the permit area to the south of the entrance. The inspection proceeded to the south of the <br />property where the recharge ponds are located. The inspector did not observe any noxious weed species <br />growing on the perimeter of the recharge ponds. Mr. Warren indicated that the Operator had recently <br />removed all of the Russian Olive trees from the site. <br />The mining operation is being conducted in phases. Phase 1 was complete as of February 2007. The Operator is <br />currently in the process of mining Phase 2, which is situated between the Box Elder Ditch and County Road 5, <br />and runs from County Road 36 in the south to the northern property boundary. The southern portion of Phase 2 <br />has been mined to completion. This portion of the mine site was stable and did not show any signs of erosion. <br />The northern portion is scheduled to be mined in the first part of 2008. As mining progress to the north in Phase 2, <br />the topsoil will be placed onto the southern half and seeding of this area will occur simultaneously. <br />The permit boundary was clearly delineated and all mining has occurred within the permit boundary. The <br />disturbed area was found to be less than 67.2 acres and did not exceed the Maximum Allowed acreage for <br />disturbance. <br />This concluded the inspection. <br />I & E Contact Address <br />NAME: John Warren <br />OPERATOR: Connell Resources. Inc. <br />STREET: 7785 Highland Meadows PKWY Suite 100 <br />CITY/STATE/ZIP: Fort Collins, C'O 80598 <br />cc: F CE <br />F BL <br />F FS <br />F HW <br />r HMWMD (CH) <br />r SE <br />I- WQCD (CH) <br />F OTHER