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July 10, 2014 C- 1981- 016/Hawk Nest E & W JRS <br />Inspection Topic Summary <br />NOTE: Y= Inspected N =Not Inspected R= Comments Noted V= Violation Issued NA =Not Applicable <br />N - Air Resource Protection <br />N - Availability of Records <br />R - Backfill & Grading <br />N - Excess Spoil and Dev. Waste <br />N - Explosives <br />N - Fish & Wildlife <br />N - Hydrologic Balance <br />N - Gen. Compliance With Mine Plan <br />N - Other <br />N - Processing Waste <br />N - Roads <br />R - Reclamation Success <br />N - Revegetation <br />N - Subsidence <br />N - Slides and Other Damage <br />N - Support Facilities On -site <br />N - Signs and Markers <br />N - Support Facilities Not On -site <br />N - Special Categories Of Mining <br />N - Topsoil <br />COMMENTS <br />This was a complete inspection of the Hawk's Nest Mine conducted by Jim Stark of the Colorado Division of <br />Reclamation, Mining and Safety. The permit for the mine was revoked and the bond was forfeited. The <br />reclamation was completed by the Division. The weather was hot and sunny and the ground was dry. <br />BACKFILL and GRADING — Rule 4.14; Contemporaneous Reclamation 4.14.1; Approximate Original Contour <br />4.14.2; Highwall Elimination 4.14.1(2)(f); Steep Slopes 4.14.2, 4.27; Handling of Acid and Toxic Materials <br />4.14.3; Stabilization of Rills and Gullies 4.14.6: <br />- The backfilled east portal and facilities area remained stable at the time of the inspection. There was no evidence <br />of any cracking, settling or slumping in the backfilled areas. There were no erosional problems noted on either <br />part of the backfilled east mine. <br />- The backfilled bleeder entries area was stable at the time of the inspection. This small disturbance showed no <br />signs of settling, cracking or slumping at the time of the inspection. There were no erosional problems noted at the <br />bleeder entries. <br />- The backfilled west mine portal and facilities area remains stable. There was evidence of any settling, cracking <br />or slumping in the backfilled areas at the time of the inspection. There were no erosional problems noted in the <br />west mine areas. <br />RECLAMATION SUCCESS - Rule 4.15, Rule 3: <br />- All of the reclaimed areas were well vegetated at the time of the inspection. There was some musk thistle, <br />hound's tongue and Russian knapweed seen on the site but these weeds were not a problem. Overall the <br />reclamation at the Hawk's Nest Mine looks very good. <br />DOCUMENTS RECEIVED: N/A <br />This concludes the 10 July 2014 complete inspection report for the Hawk's Nest Mine. <br />Number of Partial Inspection this Fiscal Year: 0 <br />Number of Complete Inspections this Fiscal Year: 1 <br />Page 2 of 8 <br />