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PERMIT #: M-2011-015 <br />INSPECTOR'S INITIALS: JLE <br />INSPECTION DATE: April 25, 2011 <br />OBSERVATIONS <br />This was a pre-operation inspection of the Silver Cliff Pit; DRMS File No. M-2011-015. The applicant is Seifert <br />Enterprises, LLC. This site is located approximately .5 miles north of Highway 96 in Silver Cliff, Colorado in <br />Custer County. I, Jared Ebert of the Colorado Division of Reclamation Mining and Safety conducted the <br />inspection. Keith Baker and Joni Johnson, of Seifert Enterprises accompanied me on the inspection. <br />This is a proposed 41.5 acre 112c mining operation for landscape rock and road base material. The <br />appropriate notice sign was in place at the entrance to the mine site. An attempt was made to find the permit <br />boundary corner markers. A new orange metal survey marker was found near the approximate location of the <br />northwest corner of the site. No other definitive markers were found to identify the corners. However, there <br />were numerous survey posts and what appeared to be claim markers found throughout the site. Prior to the <br />start of the operation, the Operator will need to ensure the affected land boundary markers are in place and <br />are identifiable from the numerous other survey posts around the site. <br />There is a small two track road that traverses the site where the access easement is located. This road <br />continues northeast into the site and intersects a more definable road the runs from the southeast corner to <br />the northwest corner of the site. Many historic mining disturbances such as small pits and small piles of rock <br />are scattered throughout the site and are visible on the Exhibit C; Pre-Mining Plan Map. A larger pile of rock is <br />located near the center of the site. The Applicant proposes to begin the mining operation from a pre-existing <br />pit located in the northwest portion of the property. This excavation is approximately 10 to 15 feet deep with <br />rock piles surrounding the pit. <br />The proposed permit boundary encompasses a dry drainage that runs from the northeast corner of the site to <br />the southwest corner of the site. The vegetation of the area is primarily native rangeland grass species, yucca <br />and small shrubs. A power line is located along the western permit boundary and runs north/south as <br />identified on the Exhibit C; Pre-Mining Plan Map. <br />Page 2 of 4