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h' <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />MINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866 -3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation noted <br />below. This report documents observations concerning compliance with the terms of the permit and <br />applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: <br />MINE /PROSPECTING ID #: <br />MINERAL: <br />COUNTY: <br />Ruby Trust Mine <br />M- 1979 -181 <br />Gold and silver <br />Ouray <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: <br />INSP. TIME: <br />Monitoring <br />Wallace H. Erickson <br />Sept. 20, 2013 <br />11:30 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Walker Ruby Mining Company, Inc. <br />Charlie Ponchak <br />110(2) - Hard Rock Limited Impact <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I &E Program <br />Partial Bond <br />$18,738.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />SIGNATURE DATE: <br />Cloudy <br />=�� <br />March 5, 2014 <br />GENERAL INSPECTION TOPICS <br />This list identifies the environmental and permit parameters inspected and gives a categorical evaluation of each. No <br />problems or possible violations were noted during the inspection. The mine operation was found to be in full <br />compliance with Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for the Extraction of <br />Construction Materials and /or for Hard Rock, Metal and Designated Mining Operations. Any person engaged in any <br />mining operation shall notify the office of any failure or imminent failure, as soon as reasonably practicable after such <br />person has knowledge of such condition or of any impoundment, embankment, or slope that poses a reasonable <br />potential for danger to any persons or property or to the environment; or any environmental protection facility <br />designed to contain or control chemicals or waste which are acid or toxic - forming, as identified in the permit. <br />Y (FN) FINANCIAL WARRANTY--- - - - - -- Y (RD)ROADS ------------------- Y <br />HYDROLOGIC BALANCE----------- - - - - -- Y (BG) BACKFILL & GRADING------- - - - - -- Y (EX) EXPLOSIVES------- - - - - -- N <br />PROCESSING WASTE /TAILINGS- - - - - -- N (SF) PROCESSING FACILITIES------ --- - -- N (TS) TOPSOIL------------ - - - - -- N <br />P) GEN MINE PLAN COMPLIANCE--- - - - - -Y (FW) FISH & WILDLIFE------------- - - - - -- Y (RV) REVEGETATION --- — --- Y <br />) SIGNS AND MARKERS ------------- — ----- N (SP) STORM WATER PLAN--------- - --- -- N (SB) COMPLETE INSP- - - - - -- N <br />(ES) OVERBURDEN /DEV. WASTE ------------- Y (SC) EROSION /SEDIMENTATION- - - - - -- Y (RS) RECL PLAN /COMP - - - - -Y <br />T) ACID OR TOXIC MATERIALS------- - - - - -- Y (OD) OFF -SITE DAMAGE----------- - - - - -- Y (ST) STIPULATIONS---- - - - - -- N <br />Y = Insnected and found in compliance / N = Not inspected / NA = Not annlicable to this operation / PB = Problem cited / PV = Possible vinlatinn cited <br />Page 1 of 2 <br />