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PERMIT #: P-2011-001 <br />INSPECTOR'S INITIALS: JLE <br />INSPECTION DATE: February 17, 2011 <br />OBSERVATIONS <br />This was a pre-operation inspection of the proposed prospecting site named the Stanley Mine; DRMS file No. <br />P-2011-001. The applicant is Empress Gold Mining and Milling, Inc. This site is located approximately one mile <br />west of Idaho Springs, Colorado in Clear Creek County. I, Jared Ebert with David Bird and Harry Lovely of the <br />Colorado Division of Reclamation, Mining and Safety (Division) conducted the inspection. Mr. Robert Fabrizio <br />of Empress Gold Mining and Milling, Inc. accompanied the Division on the inspection. <br />The Applicant is proposing to enter into an existing adit on the property and conduct a drilling operation <br />approximately 3,300 feet inside this adit. In order to conduct the drilling operation, the exiting adit must be <br />improved. Part of the proposed prospecting operation is to repair/replace damaged mine timbers. Also, <br />approximately 700 feet into the adit; a cave-in occurred blocking access to the proposed drilling station. The <br />applicant wishes to remove the material from the cave-in area, bring it to the surface and store the material in <br />a dump pit outside of the adit. Timbers removed from the adit will be stored in a building onsite. <br />A rail line comes out of the adit and runs north. A small pit excavation exits adjacent to the rail line. This <br />excavation is 10 to 12 feet deep. Vegetation such as trees and grass have volunteered into this pit. The <br />Applicant proposes to improve this excavation by lining it with concrete and constructing concrete walls. The <br />Applicant is proposing to use this pit as the dump station for the ore/material removed from the adit. There <br />are several old mine buildings surrounding the adit as well as several waste/stormwater ponds northwest of <br />the adit. The Operator is proposing to affect approximately 7,900 square feet of surface land outside of the <br />adit. <br />Mr. Fabrizio did not have access to the adit, so an inspection of the underground portion of the operation did <br />not occur. A follow up inspection was scheduled. <br />Page 2 of 5