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The Notice was approved after May 2008 and is considered non-confidential per SB-228. <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program established by the Colorado Division of <br />Reclamation, Mining, and Safety for a Notice of Intent. The inspection was done as a matter of convenience as <br />DRMS and BLM personnel had other business in the area. Therefore no Zenith personnel were on site and BLM <br />representative Barney Buria accompanied the inspector on site. <br />The project is approved for 60 drill holes along 5 picket fence lines. The main road transects the fences <br />approximately in the middle. Fence lines are primarily along pre-existing historical drill roads. Where roads are <br />not utilized, overland pathways were used that created little to no disturbance. No drill pads were established or <br />pits noted. <br />While reclamation of the project is noted as being accomplished very well, two holes present a problem which <br />needs to be addressed. DRMS and BLM personnel note two holes that have not been reclaimed. One is in picket <br />line F1 and the number was not clear. The other is in picket line F4 and believed to be hole 131. Per Rule 5.4.1(1), <br />drill holes shall be plugged immediately following the drilling of the hole and the collection of drill hole data. <br />Under no circumstances shall they be left open for more than twelve (12) months. Without details in the Annual <br />Report the time line is unclear but the holes need to be reclaimed this season regardless. The issue of the two un- <br />reclaimed holes is noted as a problem under the reclamation plan. The un-reclaimed drill hole problem with <br />corrective action and correction dates is noted at the end of this report. <br />The Annual Report submitted reflects only fees paid and contact information clarification. No details of work <br />accomplished, number of holes drilled or reclamation accomplished is noted. Per Rule 5.6(1) (c) the report should <br />describe prospecting activities that have occurred during the preceding year. Also noted is DRMS does not have <br />final drill hole abandonment reports as required by Rule 5.7. The insufficient information in the annual reports <br />and lack of final drill hole reports is noted as a problem at the end of this report with a corrective actions and <br />corrective dates. <br />Reclamation is noted as being very well done. However with two unplugged holes and missing reports, no release <br />requests can be considered by DRMS. It is in the operator's best interest to address these issues now so that any <br />future release requests is not hindered by reclamation standards or administrative issues. <br />Responses to this inspection report should be directed to Russ Means at the Division of Reclamation, Mining, and <br />Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone no. <br />970-241-1117. <br />I & E Contact Address <br />NAME: Richard Cherry <br />OPERATOR: Zenith Minerals <br />STREET: 3817 NW Expressway, Suite 1050 <br />CITY/STATE/ZIP: Oklahoma City. OK 73112 <br />cc: <br />CE <br />X BLM: Uncompagrhe <br />p FS <br />p HW <br />p HMWMD (CH) <br />CM WQCD (CH)