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PERMIT #: M -1979 -181 <br />INSPECTOR'S INITIALS: WHE <br />INSPECTION DATE: September 20, 2013 <br />OBSERVATIONS <br />This inspection occurred as part of the Division's routine monitoring of permitted operations. The Ruby Trust <br />Mine is approved for two acres of affected land for the purposes of extracting and milling precious metal ore. <br />Affected lands will be reclaimed to support general agriculture post- mining land use. This report is <br />accompanied by six photographs taken during the inspection. <br />Mining and milling activities were dormant. The Operator's representative indicated approximately 650 tons <br />of ore had been extracted, with approximately 250 tons milled on -site and 400 tons shipped to an established <br />mill in Washington, intended to provide independent analysis and to test the efficiency of the on -site mill <br />facility. The Operator had also recently driven three drill holes from underground locations. The underground <br />drill holes were driven from the underground mill area or from workings accessible from the underground mill <br />area. The three drill holes encountered water, which was observed draining from the mill portal. The <br />drainage from the mill portal appeared clear, no evidence of mineral staining, and infiltrated into the mine <br />bench adjacent to the mill portal. Evidence of discharge to Sneffels Creek was not observed for the mill portal <br />drainage. The Operator is encouraged to route the drainage from the mill portal, assuming such drainage <br />persists, to the settling ponds for treatment in accordance with the existing WQCD permit. <br />The existing financial warranty was determined during the review of AM -01, approved August 24, 2010. Site <br />conditions appeared similar to those documented during the review of AM -01, with the exception of the <br />recent drainage from the mill portal. The Division intends to conduct a follow -up inspection in 2014, shortly <br />after snow melt, to better evaluate the drainage from the mill portal, to verify compliance with permit <br />conditions, and to conduct a thorough evaluation of the current cost of reclamation. <br />Inspection Contact Address <br />David Walker <br />Walker Ruby Mining Company, Inc. <br />7216 Marsh Terrace <br />Port St. Lucie, FL 34986 -3231 <br />Enclosure: Six photographs <br />Cc w /enclosure: Charlie Ponchak <br />15292 6050 Road <br />Montrose, CO 81401 <br />Ec w /enclosure: Russ Means, DRMS GJFO <br />Page 2 of 2 <br />