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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1977-161 <br />INSPECTION DATE: NnvemhPr 19, 2008 INSPECTOR=S INITIALS: _DR? <br />OBSERVATIONS <br />This was a routine inspection conducted by David Bird as part of the DRMS normal inspection and enforcement program. The <br />most recent prior inspection was six years ago on 05 September 2002. The site is located approximately 1 '/z miles southeast <br />of Lyons in Boulder County. Silica stone is the commodity of interest at this site. Also on the inspection were Patrick Fischer <br />and Monica Sowder of CEMEX and Ken Loukonen of Loukonen Brothers. <br />The mine is considered active but no mining was ongoing during the inspection, and no new disturbance had been reported in <br />the most recent annual report filed 08 September 2008, although it is possible that previously excavated material had been <br />moved or sold from the pit during the report year. The operators did state that some new disturbance had occurred in the two <br />months since the 2008 report was filed. <br />A highwall exists on the west and north sides of the pit. The reclamation plan specifies highwall reduction through a <br />combination of blasting and grading plus importation off-site backfill as needed to achieve a final 2:1 slope configuration, <br />followed by replacement of stockpiled topsoil and revegetation to agricultural post-mining land use. <br />Recalculation of the financial warranty indicates that the existing bond amount of $223,700 is adequate to perform the <br />activities stated in the reclamation plan, assuming that the source of off-site fill is the quarry across the highway to the east, as <br />stated in the reclamation plan. <br />I & E Contact Address <br />cc: r CE <br />NAME: Patrick Fischer t BL <br />OPERATOR: CEMEX, Inc. I' FS <br />r HW <br />STREET: P.O. Box 529 I HMWMD (CH) <br />r SE <br />CITY/STATE/ZIP: _Lyons. CO 80540 r WQCD (CH) <br />r OTHER