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PERMIT #: M- 2014 -066 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: January 29, 2015 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division). Wes Williams, Dr. Clarence Henke, and Paul Danio were also present for the inspection. The Iron <br />Wm. Richardson Lode Claims site is located in Gilpin County, approximately two miles southwest of Central <br />City. The proposed operation would affect approximately 1 acre. The commodities of interest are gold and <br />silver and the proposed post- mining land use is pastureland. <br />The Division received the Designated Mining Limited Impact (110d) Operation Reclamation Permit Application <br />on November 26, 2014 and the Application was filed for review on January 13, 2015. This pre - operational <br />inspection was conducted as part of the Division's regular monitoring program. The site is considered to be a <br />designated mining operation (DMO), which is defined as a mining operation at which toxic or acid - forming <br />materials will be exposed or disturbed as a result of mining operations or acid mine drainage occurs or has the <br />potential to occur due to mining and reclamation activities. The determination of DMO status was based on <br />the presence of an historic mine dump which contains acid - generating sulfide minerals, particularly pyrite. The <br />mine dump is located in one the most heavily mined districts in Colorado and as a result is surrounded by <br />numerous historic mine dumps. The mine dumps contribute to the acid and metal loading of Clear Creek and <br />its tributaries. The Operator's proposed Mining Plan calls for the removal of the mine dump on the Wm. <br />Richardson claim, which would result in a net decrease of acid - generating material. <br />The mine dump is located approximately 800 ft. above Russell Gulch, an ephemeral stream. As noted above, <br />the proposed site is situated in an historic mining district and as a result has been heavily disturbed. The site is <br />void of vegetation with the exception of a few trees and there is insufficient topsoil available to adequately <br />reclaim the site to pastureland. The main challenges at the site will include stormwater management and <br />containment of all acid - generating material. The Division and the Operator discussed possible stormwater <br />controls which could be implemented at the site. In addition, the Operator was directed to contact the Water <br />Quality Control Division of the Colorado Department of Public Health and Environment to obtain a stormwater <br />discharge permit. <br />The mine dump material will be hauled to an off -site custom mill for processing and metal recovery. The <br />permit area also contains the historic headframe for the Iron Mine; accessing underground workings of the <br />mine is not contemplated as part of this application. The Division observed a county road and an over -head <br />powerline within 200 feet of the proposed affected area, both of which were identified in the application. The <br />Division did not observe any other permanent man -made structures. <br />The Operator had posted notice of the application at the mine site as required by Rule 1.6.2(1)(b). The Division <br />did not make any observations which would prevent the approval of the application which is currently under <br />review. The current decision date for the application is February 14, 2015. <br />This concluded the inspection. <br />Page 2 of 4 <br />