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of �o�o COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />N� oMINERALS PROGRAM INSPECTION REPORT <br />PHONE: (303) 866-3567 <br />The Division of Reclamation, Mining and Safety has conducted an inspection of the mining operation <br />noted below. This report documents observations concerning compliance with the terms of the permit <br />and applicable rules and regulations of the Mined Land Reclamation Board. <br />MINE NAME: <br />MINE/PROSPECTING ID#: <br />MINERAL: COUNTY: <br />Cash & Who Do Mines <br />M-1983-141 <br />Gold and silver Boulder <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: INSP. TIME: <br />Surety -Related Inspection <br />Michael A. Cunningham <br />April 30, 2015 09:30 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Gold Hill Mines, Inc. <br />Mark Steen <br />I 110(2) - Hard Rock Limited Impact <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE:BOND <br />AMOUNT: <br />Normal l&E Program <br />Complete Bond <br />$216,200.00 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />U.S.BLM <br />None <br />WEATHER: <br />IN TO 'S SI NATURE: <br />SIGNATURE DATE: <br />Clear <br />June 17, 2015 <br />r� <br />The following inspection topics were identified as having Problems or Possible Violations. OPERATORS <br />SHOULD READ THE FOLLOWING PAGES CAREFULLY IN ORDER TO ASSURE COMPLIANCE <br />WITH THE TERMS OF THE PERMIT AND APPLICABLE RULES AND REGULATIONS. If a <br />Possible Violation is indicated, you will be notified under separate cover as to when the Mined Land <br />Reclamation Board will consider possible enforcement action. <br />INSPECTION TOPIC: Hydrologic Balance <br />PROBLEM/POSSIBLE VIOLATION: Problem: The Division observed a collapsed/blocked culvert adjacent to the <br />Who Do portal which resulted in stormwater runoff flowing down the access road. This is a problem pursuant to <br />Rule 3.1.6(3) for failing to maintain the prevailing hydrologic balance such that all surface areas of the affected <br />land are protected to effectively control erosion. <br />CORRECTIVE ACTIONS: The Operator shall repair or replace the culvert by the corrective action date. Proof of <br />compliance may be in the form of photographs. <br />CORRECTIVE ACTION DUE DATE: 7/17/15 <br />INSPECTION TOPIC: Gen. Compliance With Mine Plan <br />PROBLEM/POSSIBLE VIOLATION: Problem: The Division observed an unidentified pipe adjacent to the Who Do <br />portal which was discharging water. There is no record of the pipe in the permit file. Therefore, the current <br />mine plan needs to be updated and clarified pursuant to C.R.S. 34-32.5-112 (1)(c)(VI). <br />CORRECTIVE ACTIONS: The Operator shall specify the purpose of the pipe and identify the source of the water <br />and the operator shall either remove the pipe or submit a Technical Revision, with the required $216 revision <br />fee, to update and clarify the current approved mine plan to reflect existing and proposed activities by the <br />corrective action date. <br />CORRECTIVE ACTION DUE DATE: 6/17/15 <br />Page 1 of 7 <br />