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­C <br />COLORADO DIVISION OF RECLAMATION, MINING AND SAFETY <br />tie 90 MINERALS PROGRAM INSPECTION REPORT <br />�* PHONE: (303) 866-3567 <br />* 1876 * <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 />Hukill Gulch Millsite <br />M-2009-076 <br />Silver and gold Clear Creek <br />INSPECTION TYPE: <br />INSPECTOR(S): <br />INSP. DATE: INSP. TIME: <br />Monitoring <br />Michael A. Cunningham <br />September 17, 2015 14:30 <br />OPERATOR: <br />OPERATOR REPRESENTATIVE: <br />TYPE OF OPERATION: <br />Venture Resources, Inc. <br />Patrick Maher <br />110d - Designated Limited Impact <br />REASON FOR INSPECTION: <br />BOND CALCULATION TYPE: <br />BOND AMOUNT: <br />Normal I&E Program <br />Complete Bond <br />$96,827.69 <br />DATE OF COMPLAINT: <br />POST INSP. CONTACTS: <br />JOINT INSP. AGENCY: <br />NA <br />None <br />None <br />WEATHER: <br />INS OR' IGN TURE: <br />SIGNATURE DATE: <br />Clear <br />October 8, 2015 <br />V W -- — / <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 Evill consider possible enforcement action. <br />INSPECTION TOPIC: Availability Of Records <br />PROBLEM/POSSIBLE VIOLATION: Problem: Rule 1.13.5 states, if an Operator temporarily ceases production of the <br />mining operation for one hundred eighty (180) days or more, the Operator must file a Notice of Temporary <br />Cessation in writing to the Office. <br />CORRECTIVE ACTIONS: The Division recommends the Operator file for Temporary Cessation. The start date of the <br />initial 5 year Temporary Cessation period is retroactive to the last date the pit was active. If that date is more than <br />5 years ago, the operator is required ask the Board for a 5 year extension to the Temporary Cessation period (per <br />rule 1.13.5 (3) and 1.13.8 (b) or begin reclamation. <br />CORRECTIVE ACTION DUE DATE: 11/09/15 <br />INSPECTION TOPIC: Hydrologic Balance <br />PROBLEM/POSSIBLE VIOLATION: Problem: The Operator has failed to initiate the approved groundwater <br />monitoring program. This is a problem pursuant to Rule 3.1.6 which requires Operator's to minimize disturbances <br />to the prevailing hydrologic balance of the affected land and of the surrounding area and to the quantity or quality <br />of water in surface and groundwater systems both during and after the mining operation and during reclamation. <br />CORRECTIVE ACTIONS: The Operator shall immediately initiate the groundwater monitoring plan: including <br />sampling of the two groundwater monitoring wells which are up gradient and down gradient of the tailings <br />impoundment. The Operator shall submit a report to the Division within five working days of the first sampling <br />event; the report shall be submitted regardless of if the wells are dry or if samples are collected. The first sampling <br />event shall be conducted on or before the corrective action date. <br />CORRECTIVE ACTION DUE DATE: 10/23/15 <br />Page 1 of 6 <br />