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MINE ID # OR PROSPECTING ID#: P-2008-043 PAGE: 2 <br />INSPECTION DATE: 5-1-09 INSPECTOR'S INITIALS: ACS <br />OBSERVATIONS <br />During the late afternoon of April 30, 2009, drilling operations in the <br />SW 1/, NE 1/, Section 33, T10N, R67W were briefly visited while <br />inspecting other Powertech operations in the vicinity. The drill crew <br />was onsite at the time of this visit, but appeared to be preparing to <br />depart. It was noted that the mud pit had not been fenced and the <br />drill hole was open. Michael Beshore of Powertech stated that the pit <br />would be fenced and the hole would be covered. <br />At 1245 hours on 5-1-09, the drill site described above (east site) and <br />a second drill site located in SE %, NW 1/, Section 33 (west site) were <br />observed through binoculars from Weld County Road 110. There were no <br />personnel at either drill site. <br />Commencing at 1500 hours, the east and west sites were inspected. <br />There were no personnel on site. The mud pits were fenced at both <br />sites. There were two drill holes observed at the west site. <br />Powertech is approved to drill three monitoring wells at the west site. <br />One of the west site holes was completed; the other west site hole was <br />in the process of being drilled and had been covered using an inverted <br />plastic bucket driven into the surrounding soil and weighted. At the <br />east site, a single hole was in the process of being drilled. The hole <br />was observed to be open. Holes must be securely covered when <br />unattended in order to prevent introduction of contaminants or any <br />unknown substances into the hole. See PB-01 on the fourth page of this <br />report. <br />A Trimble Geo XT device was used to survey the open hole location using <br />the Global Positioning System. The Geo XT survey was taken <br />approximately ten feet east of the open hole because the drill rig <br />blocked the device antenna from collecting data at the hole location. <br />The coordinates measured are 40°47'31.9"N, 104°53'32.2"W, at elevation <br />5563'. <br />Michael Beshore was contacted by phone at Powertech's Wellington Office <br />at 1514 hours and notified of the open unattended hole. Discussion of <br />how the situation should be remedied ensued, and at approximately 1600 <br />hours Michael Beshore and Terry Walsh of Powertech arrived at the site <br />with new steel pails, five gallon plastic buckets, and a heavy rubber <br />mallet purchased at the Wellington hardware store. An inverted steel <br />pail was driven into the soil around the open hole; a five gallon <br />bucket was then driven into the soil over the steel pail. The