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Inspection Contact Address <br />Martin Bauer <br />Jubilee Venture, LLC <br />19754 E Euclid Dr <br />Centennial, CO 80016 <br />Enclosure: Financial Warranty Cost Estimate <br />Cc: <br />OBSERVATIONS <br />PERMIT #: M- 2011 -029 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: August 3, 2011 <br />This was a pre- operation inspection conducted as part of the Division of Reclamation, Mining and Safety's <br />(Division) new application review process. Martin Bauer, Alvin Evans, and Philip Farney, all representing the <br />Operator, were present during this inspection. Photographs are included at the end of this report in order to <br />illustrate some of the conditions observed during this inspection. <br />The Eagle Mine is located approximately 25 miles northwest of Craig and accessed from CR 102. The <br />proposed site will be a 112 operation that will include a total of 13.5 permitted acres. The Operator has <br />committed to a maximum disturbance, at any one time, of 4 acres. The financial warranty cost estimate <br />(enclosed) has been calculated based on this amount of maximum disturbance. <br />The affected area was marked by stakes and survey lathe that were clearly visible and adequate to delineate the <br />affected area boundary. <br />The proposed mine site has been historically mined, presumably at some time during the 1920's- 1930's, with <br />little to no reclamation performed during this period. The historic mining left a series of north -south trending <br />trenches and tailings piles. Native vegetation has moved back into the previously disturbed area, consisting of <br />typical species associated with sagebrush communities of the region. <br />The proposed operation plans to mine the site in a series of panels approximately 80 feet wide by 650 feet long <br />and approximately 10 feet deep. Reclamation of a mined panel will occur subsequent to mining of the <br />following panel. <br />A plant site is to be located in the southwest corner of the permit area. One semi - permanent structure, a 20' x <br />20' building on an 8" concrete pad, will be located in this area. <br />Pre - existing significant, valuable or permanent man -made structures located within 200 feet of the affected area <br />that were not noted in the permit application, were not noted during this inspection. <br />No 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 2 <br />