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OBSERVATIONS <br />PERMIT #: M- 1985 -022 <br />INSPECTOR'S INITIALS: DB2 <br />INSPECTION DATE: 31 August 2011 <br />This inspection was conducted by David Bird of DRMS to verify adequate financial warranty, as a result of a <br />Succession of Operator transfer (SO -1) that was submitted by the succeeding operator, Buffalo Peaks Mining <br />Co., LLC and approved by the Division on 24 August 2011. The site is located approximately 14 miles <br />northwest of Fairplay in Park County. Gold is the commodity of interest at this mine. The total permit area is <br />listed in the DRMS database as 49 acres, and the post- mining land use is mining. The Division holds financial <br />warranty in the amount of $128,461. The operator chose not to attend the inspection. <br />Little has changed at this site since the last inspection in 2008, and therefore the financial warranty on file is <br />considered to be adequate for the reclamation liability. <br />One problem has been noted that will require a corrective action. The sign at the mine entrance does not <br />meet the requirements of Hard Rock Rule 3.1.12(1). As stated on page 1 of this report, the sign must be <br />brought up to the standards of the Rules within 90 days of this report. <br />Page 2 of 9 <br />