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PERMIT #: P- 2012 -006 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: May 28, 2013 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Bruce Humphries of Regulatory Permits Management, Inc. was present on behalf of Gold Hill <br />Minerals, Inc. The Bueno Mine and Mill Exploration site is located on the west side of Jamestown, Colorado. <br />On January 14, 2013, the Division received the final abandonment report for the drilling program as required <br />by Rule 5.7. The Division sent the Operator a Weather Delay Letter on January 30, 2013; the inspection was <br />postponed until the site was free of snow and accessible. <br />The drilling operation occurred on patented claims within property owned by Gold Hill Minerals. The drilling <br />pad was located adjacent to the 350 level portal on an existing road; nine core holes were drilled from this drill <br />pad and two mud pits were excavated adjacent to the drill pad. The core hole drilling occurred during <br />September of 2012 and reclamation of the disturbance associated with drilling occurred during October of <br />2012. <br />The casings were removed and the cuttings from drilling were pumped back into the core holes. The core <br />holes were filled with bentonite to a depth of approximately 10ft below the ground surface; the top 10ft. of <br />the core holes were filled with portland cement. The mud pits have been backfilled; the excavation of the mud <br />pits resulted in excess backfill material which is currently piled on top of the mud pits. This material will either <br />need to be graded to blend in with the elevation of the existing road or blended into the hill side located <br />immediately behind the mud pits. <br />No other prospecting activities were occurring at the time of the inspection. The Operator is continuing to <br />work with the US Forest Service to obtain a Plan of Operations so they may drill on their unpatented claims. <br />The Division inspected the toe of the dump on which the drilling took place. The makeshift detention basin <br />that was constructed to capture the drilling fluid which seeped from the toe of the dump while drilling <br />operations were occurring was still in place. There were several gallons of water in the detention basin; the <br />water was clear and was likely from recent precipitation events. <br />The Division holds a financial warranty in the amount of $18,500.00, which is sufficient to complete <br />reclamation. The Operator has not requested a reduction of the financial warranty. The Operator anticipates <br />modifying the NOI and applying the current financial warranty towards other prospecting activities. Any <br />prospecting activities that are not identified in the approved NOI will need to be submitted as either a new <br />NOI or a modification to the existing NOI. <br />This concluded the inspection. <br />Page 2 of 3 <br />