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i. <br />of Coto COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />yew -$ MINERALS PROGRAM INSPECTION REPORT RECEIVE w <br />PHONE: (303) 866-3567 JUN 5 2 U l l <br />'K 1876 <br />c+n auVll, <br />M:ning arld Safety <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: MINE/PROSPECTING ID#: MINERAL: COUNTY: <br />LZ Minerals Exploration Program P-2008-044 Silver, gold, copper, Mineral <br /> lead and zinc <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME: <br />Monitoring Bob Oswald May 19, 2011 16:30 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />NFI Ventures LLC None MP - Mineral Prospecting <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&e Program None $7,000.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br />NA U.S.Forest Service None <br />WEATHER: INSPECTOR'S" IGNAT <br />T SIGNATURE DATE: <br />Clear I _h i 11, - - <br />. I June 9, 2011 <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic-forming, as identified in the permit. <br />RECORDS----------------------------- NA (FN) FINANCIAL WARRANTY-------- Y (RD) ROADS-------------- NA <br />HYDROLOGIC BALANCE------------ Y (BG) BACKFILL & GRADING---------- Y (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- NA (SF) PROCESSING FACILITIES------- NA (TS) TOPSOIL------------- Y <br />GENL MINE PLAN COMPLIANCE- NA (FW) FISH & WILDLIFE---------------- NA (RV) REVEGETATION---- N <br />SIGNS AND MARKERS--------------- NA (SP) STORM WATER MGT PLAN---- NA (SB) COMPLETE INSP---- Y <br />OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP--Y <br />T) ACID OR TOXIC MATERIALS------- Y (OD) OFF-SITE DAMAGE-------------NA (ST) STIPULATIONS------- NA <br />V = i-nnntnd mod f ..-I - -.l-n- / N = Nnt incnantad / NA = Nnt annli-hle to thk nneratinn / PR = Prnhiem cited / PV = PoWhle vinlatinn cited <br />Page 1 of 4