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PERMIT #: M-1998-024 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: June 2, 2011 <br />OBSERVATIONS <br />This inspection was conducted as part of the Division of Reclamation, Mining and Safety's (Division) normal <br />monitoring program. Jason Burkey, representing the Operator, was present during this inspection. Photographs <br />are included at the end of this report in order to illustrate some of the conditions observed during this inspection. <br />The Hidden Valley Pit is located approximately four miles north of Dotsero and accessed from Coffee Pot <br />Road. It is a 112c operation that includes a total of 183.6 permitted acres. The approximate maximum <br />disturbance allowed at this site is 30 acres. According to the 2010 annual report, approximately 31.3 acres have <br />been disturbed by the mining operation in the southeast and east portions of the permitted area. Mining in this <br />area is proposed to continue down to a depth of 40 feet. The Division currently holds a financial warranty <br />amount of $86,700.00 for this site. In order to ensure the financial warranty reflects the actual current cost of <br />fulfilling the requirements of the Reclamation Plan, the Division has reviewed the reclamation costs for this site <br />and determined that the financial warranty is not adequate to reclaim the site in accordance with the approved <br />Reclamation Plan. A notice of Surety Increase (SI-2) has been included, following this report. <br />Adequate mine identification signage was noted at the entrance to the site. <br />Some non-noxious weeds were noted along the topsoil berms located along the south and east sides of the <br />disturbed area. The site had recently been treated for weeds in accordance with the weed control plan, and the <br />majority of the weeds appeared to be dying at the time of this inspection. <br />The above ground power line poles that were located in the area of disturbance had been relocated to the east <br />side of the permit area prior to this inspection. <br />No other problems or violations were noted during this inspection. <br />Responses to this inspection report should be directed to Dustin Czapla at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, <br />phone number (970) 243-6299. <br />Page 2 of 3