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(Page 2) <br />MINE ID # OR PROSPECTING ID #: M-1978-279 INSPECTOR'S INITIALS GRM <br />INSPECTION DATE: 3-25-09 <br />OBSERVATIONS <br />This inspection was conducted as part of the Colorado Division of Reclamation, Mining and Safety normal <br />monitoring program. The Goldman Pit is a 110c sand and gravel pit located south of the town of Silt on County <br />Road 335. Flag Resources representative Fred Frei accompanied the inspector on site. <br />Signage and boundary markers were in place per Rule 3.1.12. The sign was located at the entrance to the site just <br />off County Road 335. Boundaries were marked by fence lines and other features that make the disturbed areas <br />readily discernable. <br />Current mine activities noted include the stripping of additional overburden to the southwest and stockpiling in the <br />northeast portions of the pit. There was no heavy equipment, crushers or other mine equipment in the pit at this <br />time. <br />The inspector notes no ground or surface water issues. Erosion is noted on excavated slopes but areas that have been <br />regarded show little or no signs of erosional impacts. Any sedimentation is confined to the pit floor area. <br />No noxious weeds were noted within the permit area. However, given the time of year it would be difficult to <br />identify any new growth if some were present. It appears that Flag Resources is following its weed control plan <br />based on the absence of dead mature plants. <br />No trash or other mine related debris is noted in the permitted area. <br />Topsoil is stockpiled along the western edge of the pit area. A project on the adjacent lands has pushed additional <br />soils into the pile area. While overall it makes since to have one pile it may also appear to be disturbance outside the <br />permit boundaries. Based on current conditions that note a pullout area for heavy trucks and earthmoving it is clear <br />at this time that one project is not related to the other. The operator will need to be sure that the soils for the mine <br />are protected from use of any reclamation work with the other project. <br />Overall the pit appears to be following the as last updated 2003. DRMSbwi will be doing sloping along the eastern <br />update on the bond <br />edge has been accomplished. The bond sometime in the near future. The update will reflect current conditions and inflation. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining nand <br />o. <br />Safety, Grand Junction Field Office, 101 South 3`d Street, Room 301, Grand Junction, Colorado 81501, phone 970-241-1117. <br />I & E Contact Address <br />NAME: Fred Frei <br />OPERATOR: Flag Resources Inc. <br />STREET: 1412 CR 311 <br />CITY/STATE/ZIP: New Castle, CO 81641 <br /> cc: <br />? CE <br />? BLM: <br />? FS <br />? HW <br />? HMWMD (CH) <br />? WQCD (CH) <br />? OTHER: