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PERMIT #: M- 2008 -012 <br />INSPECTOR'S INITIALS: GRM <br />INSPECTION DATE: November 1, 2011 <br />The Division holds a $45,250.00 reclamation bond that was calculated in 2010. The current conditions are less <br />than anticipated so the Financial Warranty is adequate at this time. <br />The Division is reviewing the requirements for Intermittent Status (IS) and Temporary Cessation (TC) for all <br />mining operations. The drilling project is part of the approved mining plans. Nuvemco needs to be clear as to <br />the nature of the drilling so the Division can determine whether the activities are exploration or ore body <br />development. A separate letter covering the subject of TC and IS will be forthcoming so it is not being <br />addressed within this inspection report. <br />Overall the mine site is clean and orderly. No fuels or other classified materials are noted or observed on site. <br />Responses to this inspection report should be directed to Russ Means 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 no. 970 - 241 -1117. <br />The following inspection topics were identified as having Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified separately as to when the Mined Land Reclamation <br />Board will consider possible enforcement action. <br />INSPECTION TOPIC: Gen. Compliance With Mine Plan <br />PROBLEM /POSSIBLE VIOLATION: Problem: Stormwater controls approved in the EPP have not been <br />constructed <br />CORRECTIVE ACTIONS: The approved environmental protection facility structures: retention ponds, stormwater <br />ditches, and overflow structures shall be constructed as soon as possible and no later than April 30, 2012. <br />CORRECTIVE ACTION DUE DATE: 4/30/12 <br />Inspection Contact Address <br />Henry Carter <br />Nuvemco, LLC <br />10771 3200 Road <br />Hotchkiss, CO 81419 <br />CC: Rob Ernst, BLM Uncompahgre Field Office <br />Page 3 of 3 <br />