2014-12-10_INSPECTION - M1982020

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PERMIT#:M-1982-020 INSPECTOR'S INITIALS:RCO INSPECTION DATE:November 13,2014 main structures to be evaluated and certified in the EPP amendment. It was noted that runoff from the mill building area has deeply eroded the surface that conveys the runoff(which is composed of tailings sand) down to the pond. This is not a problem,since it all reports to the pond, but the operator may wish to consider a different runoff conveyance method that is more stable. The topsoil pile on the west end of the site is still present and well vegetated. No weeds were observed on the site. The lined pond was still fenced for security. The operator stated that it is used for containing "extra" water for use on the site. Most mill water is pumped up from the underground workings (150 level); and is stored in the concrete cisterns under the mill building. It is recirculated and reused as much as possible. A thickener will be used as the final step for attaining optimal water content in the tails before final disposal. The milling circuit that the operator plans to use must be clearly described in the EPP. If the circuit details are to change, this can be covered in a technical revision to the permit. After the amendment is found adequate for approval, the bond will be reviewed. At this time the bond amount is considered adequate. No problems were found during the inspection. For questions related to this report, please contact this inspector at the Division's Durango Field Office:telephone 970-247-5193, or 303- 866-3567 ext 8175. All written correspondence should be sent directly to the Division's Denver Office: Division of Reclamation, Mining&Safety 1313 Sherman Street, Room 215 Denver, CO 80203 Inspection Contact Address John McGrath Aspen Mineral Resources,Inc. PO Box 1309 Rancho Santa Fe,CA 92067 EC: Tony Smithdorf,Aspen Mineral Resources,Gunnison(via email) Photographs from the inspection are below and on the following page. PHOTOGRAPHS nxE LAV p5E_PEBIWT r w• k Page 3 of 4