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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1977-129 <br />INSPECTION DATE: 1/28/2009 <br />OBSERVATIONS <br />INSPECTOR'S INITIALS THM <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining and Safety. The Pit 500 is located off of Highway 141 approximately 0.5 miles south of <br />Whitewater, Colorado. The Pit 500 is a multi phase operation that consists of two separate locations that are divided <br />by the Gunnison River. The purpose of the January 28, 2009 inspection was to assess the success of the reclamation <br />conducted to and determine if the reclamation was completed according to what is required in the approved <br />reclamation plan. Edward and Mark Gardner accompanied the inspectors during the inspection. <br />The mine identification sign and the affected area boundary markers are in place and in compliance with rule 3.1.12. <br />The signs are located on a post at the main entrance to both locations. The permit boundaries are comprised of <br />fences, posts and geological barriers that are easily identifiable. Topsoil and overburden were observed stockpiled at <br />various locations of the mine. <br />Stage 2A - All sloping appeared to be no steeper than the required 3H:1 V. A linear crack approximately 1.5 inches <br />wide was observed at the northeast corner of the pit (A photo is included at the end of the report). It appears that all <br />required sloping for Stage 2A has been completed. The road located on the south side of the Stage 2A pit is on the <br />original reclamation plan map that was submitted in the original application package. However the road that leads to <br />the lake shore at the northwest corner of Stage 2A is not included in the approved reclamation plan. A technical <br />revision to the reclamation plan can be made to incorporate the lake access road. <br />Stage 2B - All sloping appeared to be no steeper than the required 3H:1 V. All areas appeared to have adequate <br />topsoil except for a portion location at the northeast corner. Re-sloping was conducted along the southeast shoreline <br />where sloughing occurred in spring of 2008. Water was observed seeping into the lake from the repaired slope. <br />The operator claimed that once the water level in the pit reaches equilibrium with the water level in the Gunnison <br />River the sloughing potential of the slope will decrease. <br />Stage 4B - All required reclamation work appeared to be completed in Stage 4B per the requirements of TR-Ol. <br />Stage 4B is generally flat with no sloping work required and the vegetation appeared to be diverse and established. <br />An area of Stage 4B was actively being stockpiled with topsoil and overburden from Stage 3B during the inspection. <br />Stages B, C, D, G & H - All sloping appeared to be no steeper than the required 3H:1 V. The reclaimed slopes were <br />re-contoured into the natural slopes with great success. The area is used as a cattle feeding location. The final <br />reclamation proposed for the stages is a cattle feeding lot which was its historical use prior to the mining operation. <br />This inspection was focused primarily on the reclamation release request and other components of the mining <br />operation were not formally addressed during the inspection. <br />Photos that show the conditions observed during the January 28, 2009 inspection are included at the end of this <br />report. <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone <br />no. 970-241.2042.