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PERMIT#: M-2014-066 <br /> INSPECTOR'S INITIALS: MAC <br /> INSPECTION DATE:April 26,2016 <br /> OBSERVATIONS <br /> The inspection was conducted by Michael Cunningham of the Division of Reclamation, Mining and Safety <br /> (Division). Wes Williams of Nevadaville Encore, LLC was also present for the inspection. The Iron Wm. <br /> Richardson Lode Claims site is located in Gilpin County, approximately two miles southwest of Central City. <br /> The operation is permitted for one acre of disturbance. The commodities of interest are gold and silver and <br /> the approved post-mining land use is pastureland. It was snowing during the inspection and there were <br /> patches of snow on the ground. <br /> Financial Warranty: <br /> The Division holds a financial warranty in the amount of$14,500 which remains adequate to complete <br /> reclamation of the site. <br /> Gen. Compliance With Mine Plan: <br /> The site was not active at the time of the inspection and no equipment is being stored at the mine. The <br /> Operator is approved to remove a historic mine dump from the site. The dump contains approximately 8,000 <br /> tons of material which will be hauled to an off-site mill facility. To date, the Operator has removed <br /> approximately 100 tons of tailings from the dump. Site conditions look mostly as they did during the pre- <br /> operational inspection conducted in 2015. <br /> Signs and Markers: <br /> The permit sign was posted at the site entrance as required by Rule 3.1.12. However, the boundary of the <br /> affected area was not fully delineated. The Operator had placed boundary markers on the east side of the <br /> permitted area. However, the markers on the west end delineated the extent of the patented mining claim <br /> and not of the permit area. The Division explained to the Operator that the area corresponding to the <br /> approved permit must be delineated. A problem was cited for missing boundary markers, which will require <br /> corrective action by the Operator. Please see the first page of this report for additional information. <br /> Storm Water MGT Plan: <br /> The Operator has installed silt fencing and straw wattles around the perimeter of the affected area. The <br /> Division observed sections of the silt fence which needed to be repaired. The failure to maintain the <br /> stormwater controls has been cited as a problem and will require corrective action by the Operator. Please see <br /> the first page of this report for additional information. <br /> This concluded the inspection. <br /> Page 2 of 4 <br />