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PERMIT #: P- 2009 -025 <br />INSPECTOR'S INITIALS: BMK <br />INSPECTION DATE: October 20, 2011 <br />OBSERVATIONS <br />1) The Division conducted a monitoring inspection of the 10 prospecting sites that were drilled and <br />reclaimed under prospecting permit # P- 2009 -025 on 10 /20 /11.Presnt during the inspection was Ben <br />Vallerine, of Black Range Minerals and Tom Kaldenbach and Tim Cazier of DRMS.(Division of <br />Reclamation Mining and Safety). The area where the drilling and reclamation operation took place is <br />known as the Hanson Project. The operator, Black Range Minerals under the above prospecting permit <br />has an approval to drill 25 prospecting drill holes in the area. However, only 10 drill holes were <br />completed and reclaimed during the past season. All the drill holes were permanently plugged with <br />cement, sealed and capped pursuant to the requirements of Rule 5.4.1. As part of the approval, the <br />operator was also required to analyze the contents of the mud pits, utilized during the prospecting <br />operation. The operator is in compliance with the condition of the approval. The results of the mud pit <br />analysis will be submitted with the drill hole abandonment report in accordance with Rule 5.4. A draft <br />copy of the results were provided during the inspection. <br />2) All ten drill holes and associated disturbances were walked and inspected and found to have been <br />reclaimed as approved in the reclamation plan for the prospecting permit. Where needed, the <br />appropriate storm water best management practices were implemented in the form of silt fences and <br />berms to protect the hydrologic balance. The operator is in compliance with the approved reclamation <br />plan. <br />Page 2 of 4 <br />