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PERMIT #: M-1979-034 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: August 16, 2010 <br />OBSERVATIONS <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety (DRMS) normal <br />monitoring program. Mike Gomez, representing General Operating Company, was present during the <br />inspection. Photographs are included at the end of this report to illustrate the conditions observed during the <br />inspection. <br />The site is located approximately 4.5 miles northeast of Phippsburg, and accessed from CR 14 near Stagecoach <br />Reservoir. <br />The mine identification sign was in place and adequate, with the permit boundary delineated by T-posts. <br />The slope of the active mine face was approximately 1 H:1 V (see photos), which is consistent with the <br />reclamation plan. Continuing mining in this manner is recommended, as it will keep reclamation costs down. <br />Noxious weeds were observed on-site (see photos) and are noted as a problem in this inspection report. <br />The fuel tank observed in the processing area (see photos), as confirmed by Mr. Gomez, does not have <br />secondary containment. This is also noted as a problem in this inspection report. <br />The current financial warranty held for this site is adequate at this time. <br />No other problems or violations were noted during this inspection. <br />Please contact me with any questions or concerns you may have regarding this inspection report at the Division of <br />Reclamation, Mining and Safety Grand Junction Field Office, 101 South 3rd Street, Suite 301, Grand Junction, <br />Colorado, 81501, telephone no. 970.243.6299. <br />Page 3 of 4