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PERMIT #: M-2006-031 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: June 25, 2015 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br />(Division) and Amy Titterington and Kelsa Warner of the U.S. Forest Service (USFS). Mr. Scott West was <br />present on behalf of Steel Rose Inc. The Steel Rose 1 site is located approximately 13 miles northwest of Lake <br />George and 2 miles north of State Highway 24 on Forest Road 226 in the Pike -San Isabel National Forest. The <br />site is permitted for 9.0 acres and the post -mining land use is rangeland. <br />The Division accompanied the USFS on a routine monitoring inspection. The site was not active at the time of <br />the inspection and the Operator did not have any equipment on site. The Operator continues to mine within <br />the existing trench, which is approximately 300 feet in length and 40 feet in width, and 25 feet deep. The <br />Operator has stockpiled waste rock around the perimeter of the site; there is approximately 11,000 cubic <br />yards of overburden stockpiled. The topsoil has been salvaged and there are stockpiles on both side of the <br />trench. Some additional mining occurred at the south end of the trench during last year's mining season. <br />However, the site conditions remain largely unchanged since the Division's last inspection. <br />The USFS informed the Operator that they would have to select an alternate route for haul trucks to access <br />the site. All roads being used in conjunction with this operation are existing and will not require upgrades. <br />Therefore, the Operator does not need to file a Technical Revision with the Division to address these changes. <br />The Division reminded the Operator of the requirements for Temporary Cessation of a mining operation. <br />Pursuant to Rule 1.13.5, if the Operator plans to, or does, temporarily cease production of the mining <br />operation for 180 days or more, the Operator must file a Notice of Temporary Cessation in writing, to the <br />Division. <br />This concluded the inspection. <br />Page 2 of 3 <br />