2014-03-18_INSPECTION - P2010005

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PERMIT #: P- 2010 -005 INSPECTOR'S INITIALS: WHE INSPECTION DATE: November 15, 2013 INSPECTION TOPIC: Financial Warranty PROBLEM: The Division has reviewed the current cost of reclamation totaling $3,525.90. Therefore, the existing $2,751.00 financial warranty is not adequate to reclaim the site in accordance with the approved reclamation plan and applicable requirements of the Act and Rules. This is a failure to maintain the proper financial warranty amount to complete reclamation of the affected lands pursuant to § 34- 32- 117(4)(b) C.R.S. CORRECTIVE ACTIONS: Pursuant to Rule 4.2.1(2), the Prospector has 60 days from the signature date of this report, by May 19, 2014, to provide $774.90 additional surety to ensure a total financial warranty not less than $3,525.90, or advance the reclamation and thereby render the existing financial warranty adequate. CORRECTIVE ACTION DUE DATE: May 19, 2014 OBSERVATIONS This inspection occurred in accordance with the Division's routine monitoring of permitted operations. The Lickskillet Mining Claims is approved for 1.5 acres of affected lands for sorting through pre -law mine spoils, procuring Turquoise specimens, and backfilling pre -law pits and portals with the re- worked spoils. The NOI is located on federal lands administered by the Bureau of Land Management (BLM). Affected lands will be reclaimed to support rangeland post- mining land use. The Division holds $2,751 financial warranty. This report is accompanied by three photos and an updated reclamation cost estimation totaling $3,525.90. The 1.5 -acres affected lands are located within an historic disturbance of approximately 30 acres area. Pre - law mining activities appear to have initiated with underground mining techniques, as evidenced by numerous small portals with associated spoil piles. Later, the underground activities were abandoned for surface mining techniques, as evidenced by a large open pit with significant highwalls on the north, east and south sides of the pit; the pit daylights with native ground to the west. Portions of the earlier underground workings were intercepted and exposed by the subsequent excavations from surface. Remnants of the underground workings are presently evident in the exiting east highwall. The large scale activities ceased and the mine was abandoned prior to the reclamation statute. Topsoil was not salvaged during the pre -law activities and is not available for reclamation purposes. The Lickskillet NOI was approved on June 21, 2010, and somewhat overlaps a different NOI (King's Turquoise Mine, P- 1981 -045), issued to a different Prospector. The King's Turquoise Mine is in final reclamation. As shown in the enclosed three photos, prospecting activities appeared compliant with conditions of the approved NOI. The Prospector is sorting through the pre -law mine spoils, searching for Turquoise specimens and backfilling the historic pit(s) with the spoils. On -site processing equipment was limited to one conveyor, a screen, and a truck. Small stockpiles of mine spoils were located nearby the processing equipment. Notice to Increase the Financial Warranty Based on observations made during the inspection, and on the conditions of the approved NOI and applicable requirements of the Act and Rules, the Division has reviewed the current cost of reclamation totaling $3,525.90. Please find enclosed eight pages of summary and work sheets utilized by the Division to calculate the current cost of reclamation. Therefore, the existing $2,751 financial warranty appears insufficient to ensure the completion of reclamation. The Division has noted a problem with the existing financial warranty and has imposed a corrective action Page 2 of 3