2015-06-09_INSPECTION - M2015017

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PERMIT #: M-2015-017 INSPECTOR'S INITIALS: MAC INSPECTION DATE: May 28, 2015 OBSERVATIONS The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety (Division). Todd Sullivan of JRS Mining LLC and Greg Lewicki and Ben Miller of Greg Lewicki and Associates were also present for the inspection. The Sullivan Aggregate Pit site is located approximately one mile northwest of Fairplay, CO adjacent to the middle fork of the South Platte River. The proposed mining operation would be conducted under a Hard Rock/Metal Mining Regular 112 Reclamation Permit; gold would be the primary commodity to be mined with aggregate as a secondary commodity. The proposed operation would be permitted for 45.08 acres and the designated post -mining land use is wildlife habitat. The pre -operational inspection was conducted as part of the Division's regular monitoring program. The Division received the Applicant's permit application on April 2, 2015. The permit was filed for review on April 13, 2015 and the decision date is July 12, 2015. There is an existing 110(2) Hard Rock Reclamation Permit (M- 2013-074), operated by JRS Mining LLC, which is partially within the footprint of the proposed operation. The Division conducted an inspection of the existing operation on September 16, 2014 and found the Operator had affected approximately 0.85 acres outside of the permit boundary. As a result, the matter was scheduled before the Mined Land Reclamation Board and a violation of C.R.S. 34-32-116(7)(h) was issued and the Operator was order to submit a new 112 Permit application within 60 days of the effective date of the Board Order. The Operator is currently in compliance with the Board Order. Upon approval of the Hard Rock 112 Reclamation Permit, the existing 110(2) Hard Rock Permit will be released or reduced to the permitted areas which are outside of the new proposed permit boundary. The primary method of mining will be gold placer mining. The Operator will excavate loose gravel and will run the gravel through the wash plant consisting of a hopper, trommel screen, and a sluice. Water for the operation will come from the Westerman Ditch; the Operator holds a water right to 2 cfs from the ditch. Excavation will occur on both sides of the middle fork of the South Platte River. The north side of the site consists primarily of grassland, while the south side of the site is predominately forested. There is an existing river crossing associated with the 110(2) Hard Rock site; however, the Operator is proposing to construct a new river crossing to facilitate future operations. The river crossing and activities conducted within or near the floodplain are of particular concern to the Division. The Operator has been instructed to consult with the Army Corps of Engineers (ACOE) to determine the extent of the floodplain as well as to determine any requirements from the ACOS, which would be incorporated into the Reclamation permit issued by the Division. Portions of the proposed mine site have been disturbed by historic placer operations and there is little to no topsoil available in these areas. The Operator is proposing to salvage fines from the gold recovery process to provide a growth medium for the areas which are devoid of topsoil. All of the permanent man-made structures listed in the permit application were accounted for and no additional structures were identified. The site currently contains a small cabin and water well on the south side of the river. The Operator intends utilize the cabin for residential purposes at the end of the life of the mine. A small office trailer will be located adjacent to the cabin while the site is mined. The Division did not make any observations which would prevent the approval of the application. As noted above, the decision date for the application is July 12, 2015. This concluded the inspection. Page 2 of 4