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of Co? COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPOPIWCEIVED <br />* PHONE: (303) 866-3567 <br />1876 <br />SEP 09 Zz <br />Dino of 77-7 7 <br />The Division of Reclamation, Mining and Safety has conducted an inspection 00 nl%eration <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: MINE/PROSPECTING ID#: MINERAL: COUNTY: <br />Eldorado-Pilot M-1990-059 Gold and silver Ouray <br />INSPECTION TYPE: INSPECTOR(S): INSP. DATE: INSP. TIME. <br />Monitoring Bob Oswald August 15, 2010 09:00 <br />OPERATOR: OPERATOR REPRESENTATIVE: TYPE OF OPERATION: <br />Gil Moser None 110(1) - Hard Rock Limited Impact <br />REASON FOR INSPECTION: BOND CALCULATION TYPE: BOND AMOUNT: <br />Normal I&E Program None $1,000.00 <br />DATE OF COMPLAINT: POST INSP. CONTACTS: JOINT INSP. AGENCY: <br /> None None <br />WEATHER: INSPECTOR'S SIG TUBE: SIGNATURE DATE: <br />Clear I -I, ? A- X September 6, 2010 <br />VN'r 01-1 - <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No problems <br />or possible violations were noted during the inspection. The mine operation was found to be in full compliance with Mineral <br />Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of Construction Materials and/or <br />for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any mining operation shall notify the office <br />of any failure or imminent failure, as soon as reasonably practicable after such person has knowledge of such condition or of <br />any impoundment, embankment, or slope that poses a reasonable potential for danger to any persons or property or to the <br />environment; or any environmental protection facility designed to contain or control chemicals or waste which are acid or <br />toxic-forming, as identified in the permit. <br />RECORDS--------------------------------- NA (FN) FINANCIAL WARRANTY-------- Y (RD) ROADS------------------ Y <br />HYDROLOGIC BALANCE------------- Y (BG) BACKFILL & GRADING---------- Y (EX) EXPLOSIVES--------- NA <br />PROCESSING WASTE/TAILING---- NA (SF) PROCESSING FACILITIES------- NA (TS) TOPSOIL--------------- Y <br />GENL MINE PLAN COMPLIANCE- NA (FW) FISH & WILDLIFE---------------- NA (RV) REVEGETATION---- Y <br />SIGNS AND MARKERS----------------- NA (SP) STORM WATER MGT PLAN---- NA (SB) COMPLETE INSP---- NA <br />OVERBURDEN/DEV. WASTE--------- NA (SC) EROSION/SEDIMENTATION--- Y (RS) RECL PLAN/COMP-- Y <br />T) ACID OR TOXIC MATERIALS------- Y (OD) OFF-SITE DAMAGE---------------NA (ST) STIPULATIONS------- NA <br />Y = Inspected and found in compliance / N = Not inspected / NA = Not applicable to this operation / PB = Problem cited / PV = Possible violation cited <br />Page 1 of 2