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This inspection was conducted as part of the Division of Reclamation, Mining and Safety's (Division) normal <br />monitoring program. Brad Palmer and Michael Irwin, representing the Operator, were present during this <br />inspection. Photographs are included at the end of this report in order to illustrate some of the conditions <br />observed during this inspection. <br />The Half Moon Pit is located approximately 5.8 miles southwest of Leadville and accessed from CR11A. The <br />site is a 112c operation that includes a total of 80 permitted acres, of which approximately 28 acres have been <br />disturbed. Pursuant to Rule 4.1.2 (2), a financial warranty is not required for this site. <br />Adequate mine identification signage was noted at the entrance to the site in accordance with Rule 3.1.12(1). <br />The affected area was marked by posts that were clearly visible and adequate to delineate the affected area <br />boundary. <br />Topsoil was placed in well vegetated berms around the pit perimeter. <br />Pit slopes of 3H:1 V are being maintained during mining. <br />There has been no groundwater encountered at the site. <br />Noxious weeds were not noted at the site. <br />There was no fuel storage noted at the site. <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 />Inspection Contact Address <br />Brad Palmer <br />Lake County <br />P.O. Box 952 <br />Leadville, CO 80461 <br />Enclosure <br />Cc: <br />OBSERVATIONS <br />PERMIT #: M -1977 -071 <br />INSPECTOR'S INITIALS: DMC <br />INSPECTION DATE: August 24, 2011 <br />Page 2 of 2 <br />