I think this photo is of the last run of D&RGW 2-8-0 318, at Montrose, Colorado in 1953. This engine finished its career on the remaining west portion of the Black Canyon line (dismantled as a through route in 1949), mostly running from Montrose down to the Rio Grande Southern connection at Ridgway, and on down from there to Ouray. By this date, the trips were just for Ouray, as the RGS had been abandoned. Very shortly after, the Ridgway-Ouray portion was dismantled and Montrose-Ridgway was standard gauged for the GP7.

http://photoswest.org/cgi-bin/imager?00401782+RR-1782

The 318 has been dismantled at the Colorado RR Museum for years, with hopes of seeing it run again. I think the usurping GP7 eventually got resold to the Rock Island, but don't know if it survives in industrial service or not. The K27 2-8-2 in the background (454 I think) was scrapped a year or two later.