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(Page 2) <br />MINE ID # OR PROSPECTING ID #: P-2008-046 <br />INSPECTION DATE: 04/02/2009 <br />INSPECTOR'S INITIALS THM <br />OBSERVATIONS <br />This inspection was conducted as part of the normal program established by the Colorado Division of Reclamation, <br />Mining and Safety. The ASMO RD&D Project is a Mineral Prospecting site located approximately 25 miles west of <br />Rio Blanco, Colorado southwest of Piceance Creek Road. Jack Clark was the AMSO representative and Paul <br />Daggett of the BLM were both present during the inspection. <br />The ASMO RD&D Project consists of two existing constructed and three proposed well pad locations. Three of the <br />pads are proposed to be constructed spring 2009. A recent modification to the prospecting permit was conducted to <br />allow for construction of an additional pad that will be used as a location to be used for the new exploration borehole <br />and four tomography wells. The modification reduces the total disturbance from 11.1 acres to 10.0 acres. The <br />modification also includes revising the drilling program which includes the plugging and abandonment of a core <br />hole(already complete), installation of one new bore hole on the TM Pad, relocation of the 4 tomography wells from <br />the TP Pad to the TM Pad, deletion of wells T-1 and HB-1. The changes to the drilling program also include design <br />changes for the following wells: tomography wells TM-1 through TM-4, monitoring well HB-L3, Wasatch <br />monitoring well MWP-2 WS, B-Groove monitoring well MWP-2 BG and monitoring well MWP-2 U. <br />The overall appearance of all the locations was organized and free of trash. The nets above evaporation pit on the <br />test pad were intact and appeared to be in good condition. <br />All topsoil stockpiles appeared to be stabilized with adequate amounts of geo-textile matting and were easily <br />identified. No evidence of erosion or off site damage from erosion was noted. The drainages located near the test pad <br />were built well and would likely reduce impacts of erosion associated with a large precipitation event. <br />Very few weeds were observed within the permit area during the inspection. This is not considered an issue and is <br />noted to use as a .tool to monitor the future success of the operator's weed management plan during future <br />inspections. <br />No problems or violations were observed during the inspection. <br />Photos that show the conditions observed during the April 2, 2009 inspection are included at the end of this 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 Yd Street, Room 301, Grand Junction, Colorado 81501, phone <br />no. 970-241-2042. <br />I & E Contact Address cc: <br />NAME: Roger Day <br />OPERATOR: AMSO, LLC <br />STREET: P.O. Box 1470 <br />CITY/STATE/ZIP: Rifle, CO 81650 <br />X BLM <br />? FS <br />? HW <br />? HMWMD (CH) <br />? OTHER <br />X Steve Shuey, DRMS