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PERMIT #: M- 1984 -039 <br />INSPECTOR'S INITIALS: WHE <br />INSPECTION DATE: August 6, 2014 <br />INSPECTION TOPIC: Financial Warranty <br />PROBLEM: The Division has reviewed the current cost of reclamation totaling $3,460.79. Therefore, the <br />existing $2,500 financial warranty is not adequate to ensure the completion of reclamation in accordance with <br />the approved reclamation plan and Act and Rules. This is a failure to maintain the financial warranty as <br />necessary to complete reclamation of the affected lands pursuant to C.R.S., § 34- 32- 117(4)(b). <br />CORRECTIVE ACTIONS: Pursuant to Rule 4.2.1(2), the Operator has 60 days from the date of this report, due <br />January 27, 2015, to provide $960.79 additional surety, to ensure a total financial warranty not less than <br />$3,460.79. <br />CORRECTIVE ACTION DUE DATE: January 27, 2015 <br />INSPECTION TOPIC: Mine Plan Compliance <br />PROBLEM: There is no map within the permit file which outlines and labels the eight -acre permit boundary. <br />The absence of an appropriate mine plan map, which outlines and labels the permit boundary, is in conflict with <br />the requirements of Rules 6.2.1(2)(d) and 6.3.5(2)(a). <br />CORRECTIVE ACTION: Within 60 days of the signature date of this report, by January 27, 2015, the Operator <br />must submit an updated mine plan map, which outlines and labels the permit boundary. The map must satisfy <br />the requirements of Rules 6.2.1(2) and 6.3.5(2)(a). The map shall be submitted for Division review and approval <br />through the Technical Revision process, described under Rule 1.9. <br />CORRECTIVE ACTION DUE DATE: January 27, 2015 <br />INSPECTION TOPIC: Signs & Markers <br />PROBLEM: The mine identification sign and permit boundary markers, required under Rule 3.1.12, were not <br />observed. <br />CORRECTIVE ACTIONS: Within 60 days of the signature date of this report, by January 27, 2015, the Operator <br />must provide photographic evidence to the Division which demonstrates a mine identification sign has been <br />posted and the eight -acre permit boundary has been delineated on the ground. Pursuant to Rule 3.1.12(1), the <br />identification sign must be posted at the mine entrance, be clearly visible from the access road, and must <br />display the name of the operator, the permit number, and a statement indicating a reclamation permit for the <br />operation has been issued by the Colorado Mined Land Reclamation Board. <br />CORRECTIVE ACTION DUE DATE: January 27, 2015 <br />OBSERVATIONS <br />This inspection occurred as follow -up to the Division's previous inspection, conducted on September 26, 2013, <br />to evaluate compliance with the Division's corrective actions and to update the financial warranty. The 110(2) <br />permit is approved for eight acres of affected land for the extraction of precious metal ore from the Toltec No. <br />2 patented mine claim. Affected lands will be reclaimed to support rangeland post- mining land use. The <br />Division holds $2,500 financial warranty. This report is accompanied by an updated reclamation cost <br />estimation totaling $3,460.79 and three photographs taken during the inspection. <br />On August 6, 2014, the Division met Mr. Benham in Silverton. The Division attempted to explain and clarify <br />the corrective actions from the inspection report generated from the September 26, 2013 inspection. Mr. <br />Benham described reclamation efforts he had recently completed, including the posting of the permit <br />boundary markers and a mine identification sign. Mr. Benham indicated he had taken numerous photographs <br />of the reclamation work and sign and markers. The photographs had been taken with his cell phone. <br />Page 2 of 3 <br />