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OBSERVATIONS <br />PERMIT #: M- 2006 -031 <br />INSPECTOR'S INITIALS: DB2 <br />INSPECTION DATE: 22 September 2011 <br />This was a routine 5 -year monitoring inspection conducted by David Bird of DRMS. Scott West was present <br />representing the operator. <br />The site is located in Park County approximately 13 miles northwest of Lake George and about 2 miles north of <br />State Highway 24 alongside Forest Road 226. Gold is the commodity of interest at this mine. The total permit <br />area is listed in the DRMS database as 3.39 acres, and the post- mining land use is designated as rangeland. <br />The Division holds financial warranty in the amount of $8,317 for the operation. <br />There was no mining activity occurring at the time of the inspection and no equipment on site. However, <br />there had been recent activity in the form of deepening and widening of the trench. <br />Two problems were noted that will require corrective actions. First, the sign required by Construction <br />Materials Rule 3.1.12(1) is not present. Second, we were unable to verify the existence of permit boundary <br />markers on the ground as required under Construction Materials Rule 3.1.12(2). As stated on page 1 of this <br />report, the permit boundary markers must be brought up to the standards of the Rules within the time frame <br />stated. <br />No other problems were noted. Weeds are under control, there is no off -site damage, and there are no issues <br />with respect to hydrologic balance. <br />The financial warranty appears adequate at this time. <br />Page 2 of 11 <br />