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Matheson <br />• Mining <br />Consultants, Inc. <br />• <br />April 23, 2008 <br />Mr. Allen Sorenson <br />Colorado Division of Reclamation, Mining & Safety <br />1313 Sherman Street, Rm. 215 <br />Denver, CO 80203 <br />Dear Mr. Sorenson: <br />2801 Youngfield Street, Suite 171 <br />Golden, CO 80401 <br />303 -456 -5638 <br />Toll Free 888 -456 -5638 <br />Fax 303 -456 -5639 <br />www.mathesonmining.com <br />MEWED <br />APR 2 9 2008 <br />Division or Neciamation, <br />Mining and Safety <br />Cory Loukides of Matheson Mining Consultants, Inc. (MMC) conducted 19 preblast surveys <br />between March 4 —17, 2008, and obtained ground water samples from 16 wells on March 17 and <br />2 wells on April 17, 2008. All structures and wells were located with '/2 mile of the blasting <br />limits for the Coaldale Quarry permit #M1977247 with the exception of the Latvala residence <br />and well which falls outside this limit. <br />Preblast surveys included the examination of all accessible areas of the occupied structures listed <br />in Appendix I. The inspection report is based on an examination of only those portions of the <br />premises readily accessible for visual inspection. No inspection was performed in areas that <br />were obstructed, concealed, or closed off. No inspection was performed in areas that required <br />the dismantling, removal, or movement of any object including, but not limited to: roof, wall, <br />floor and ceiling coverings, furniture and appliances. <br />The condition of the premises may change after the dates of inspection due to factors such as <br />weather, fire, moisture, leaks, and action taken by the owner or others, or the passage of time. <br />This inspection report describes the condition of the premises at the time of inspection, and <br />generally follows the order in which each premises was inspected. A Sony digital video camera <br />was used to document any pre - existing damage at each structure inspected. <br />Water sampling was conducted and submitted to ACZ Laboratories in Steamboat Springs, <br />Colorado for ground water analysis. Guidelines and recommendations described on ACZ <br />laboratories chain of custody instructions were followed. Analytical results obtained from ACZ <br />Laboratories are presented in Appendix II. <br />This pre -blast inspection report includes the following for each property inspected: A DVD of <br />the inspection, a condition inspection form and a description of the location and type of damage <br />located on each DVD. DVD's are found in Appendix III. <br />