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PERMIT #: M-2014-017 <br />INSPECTOR'S INITIALS: MAC <br />INSPECTION DATE: September 3, 2015 <br />OBSERVATIONS <br />The inspection was conducted by Michael Cunningham and Dustin Czapla of the Division of Reclamation, <br />Mining and Safety (Division). Amy Titterington, Kelsa Warner and Anthony Davila were present on behalf of <br />the U.S. Forest Service. Mark Krivanek, the Operator, was also present for the inspection. The Chip n Dale site <br />is located at an approximate elevation of 12,500 feet and is situated above Little Brown Creek. The site is <br />permitted for 9.9 acres with a maximum allowed disturbance of 0.5 acres. The commodity of interest is <br />gemstones and the post -mining land use is forestry. <br />The operation was not active at the time of the inspection and no equipment was present. The site is operated <br />intermittently due to the elevation and the Operator informed the Division that no further activity would <br />occur this year. The permit sign was posted at the site entrance; however, the boundary of the affected area <br />was not delineated. The mining claims held by the Operator encompass an area greater than 9.9 acres. <br />However, the Operator should note that the 9.9 acre permit boundary approved by the Division is a fixed <br />permit boundary and is not allowed to move within the area of the mining claims. The lack of permit <br />boundary markers has been cited as a problem and will require corrective action by the Operator. Please <br />see the first page of this report for additional details regarding the corrective action. <br />A review of the permit file found that the permit boundary is incorrectly depicted on the Mining Plan Map. As <br />noted above, the Chip n Dale site has been permitted for 9.9 acres. The Operator has recently provided the <br />Division with a surveyed map of the mining claims. The Operator may overlay the 9.9 acre permit boundary <br />onto this map. In addition, the Division recommends collecting GPS coordinates for each of the corner <br />markers, so that these markers may be replaced in the future if they are ever removed. The Operator should <br />ensure that the permit boundary encompasses all existing disturbance at the site. The incorrect depiction of <br />the permit boundary on the Mining Plan Map has been cited as a problem and will require corrective action <br />by the Operator. Please see the first page of this report for additional details regarding the corrective <br />action. <br />The Operator has created a small parking area at the end of the access road; the parking area is large enough <br />to accommodate several vehicles. From the parking area, the Operator has graded a road upslope and to the <br />south which connects the two digs areas; the road is approximately 400 feet in length. The Operator has <br />created two small benches along the access road which are each approximately 15 feet in width and 40 feet in <br />length. The area is characterized by unstable talus slopes which consist primarily of medium sized boulders <br />and is underlain by sand, silt and decomposed granite. The excavated material has been stockpiled adjacent to <br />the benches. There is minimal topsoil and vegetation in this area and the Operator has taken care not to <br />disturb areas with established vegetation. <br />The Division holds a financial warranty in the amount of $10,402.00 which has been determined to be <br />adequate to complete reclamation. <br />This concluded the inspection. <br />Page 2 of 4 <br />