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PERMIT #: P- 2009 -009 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: November 21, 2014 <br />all times as necessary to provide for public safety. <br />As a part of this inspection, the Division has reviewed the activities authorized under the NOI as well as the <br />activities conducted each year as specified in the Annual Reports. The Operator has been engaged in <br />prospecting activities for approximately five years. Prospecting is defined as the act of searching for or <br />investigating a mineral deposit and is generally limited in duration. Prospecting for mineral specimens such as <br />pegmatite typically involves digging pits or trenches in search of the desired mineral deposit. If mineral <br />specimens are being removed from their natural occurrence and in turn are sold or introduced into the <br />market, then the activity is considered to be mining as defined by the Hard Rock Rules. In addition, the USFS <br />has issued a POO for the activities being conducted, which is generally commensurate with the Division's <br />Reclamation Permits. Based on a review of the activities being conducted at the Wild Blue Indian site and the <br />duration of the project, the Division has determined that the Operator must apply for and obtain a <br />Reclamation Permit in order to continue mining at the Wild Blue Indian Lode. <br />Based on the Division's observation made during the inspection, the following problems were cited: <br />1) Failure to adequately segregate and stockpile topsoil. <br />2) Failure to control erosion and siltation. <br />3) Failure to adequately safegaurd the excavations. <br />4) Failure to obtain a reclamation permit prior to engaging in a mining operation. <br />Please see the first page of this report for additional information and corrective actions associated with the <br />above cited problems. <br />The Division and the USFS hold a financial warranty in the amount of $5,072.00. A complete bond calculation <br />will be performed in order to determine if the financial warranty is adequate to complete reclamation. Notice <br />of any increase to the required financial warranty amount will be sent under separate cover. <br />This concluded the inspection. <br />Page 3 of 5 <br />