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COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <br />* 1876 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <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: <br />MINE/PROSPECTING ID #: <br />MINERAL: <br />COUNTY: <br />Bates - Hunter Mine <br />M- 1990 -041 <br />Gold <br />Gilpin <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Michael A. Cunningham <br />August 22, 2013 <br />11:00 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Central City Consolidated Mng <br />Willie Phillips <br />1 l0(2) - Hard Rock Limited Impact <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I &E Program <br />Complete Bond <br />$5,000.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />SIGNATURE: <br />SIGNATURE DATE: <br />Clear <br />!TCXOR'S <br />September 19, 2013 <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 under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />INSPECTION TOPIC: Acid And Toxic Materials <br />PROBLEM /POSSIBLE VIOLATION: Problem: The Division observed unlabeled 55 gallon barrels of <br />chemicals /reagents on the south side of the mill building. <br />CORRECTIVE ACTIONS: The Operator shall provide an updated chemical /reagent inventory of the type, quantity, <br />volume and chemical composition for each milling reagent stored at the Golden Gilpin Mill, including reagents <br />stored within the mill. The Operator shall move all 55 gallon barrels into the mill facility. The barrels shall be <br />properly labeled and shall be stored off the ground. The Operator shall complete the corrective action by the <br />specified date and shall notify the Division when the corrective action has been complied with; the Division will <br />conduct a follow -up inspection to confirm compliance. <br />CORRECTIVE ACTION DUE DATE: 10/18/13 <br />INSPECTION TOPIC: Acid And Toxic Materials <br />PROBLEM /POSSIBLE VIOLATION: Problem: The Division observed a 55 gallon steel barrel on the south side of <br />the mill building. The barrel was corroded and the contents had spilled onto the ground. <br />CORRECTIVE ACTIONS: The Operator shall identify the contents of the corroded barrel and shall specify the <br />volume of material which was stored in the barrel. The material shall be removed from the mill site and <br />disposed of in accordance with hazardous materials regulations. The Operator shall provide the Division with <br />proof that the material was properly identified, transported and disposed of by the specified corrective action <br />date. <br />CORRECTIVE ACTION DUE DATE: 10/03/13 <br />Page I of 7 <br />