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PERMIT #: M-1979-181 <br />INSPECTOR’S INITIALS: THM <br />INSPECTION DATE: May 25, 2016 <br /> <br /> <br />Page 2 of 5 <br /> <br />OBSERVATIONS <br />This inspection was conducted as part of the normal monitoring program established by the Colorado <br />Division of Reclamation Mining and Safety. The Ruby Trust Mine Operation is an active 110(2) underground <br />mine. The commodities mined are gold and silver. The mine currently consists of 2.0 permitted acres. The <br />Ruby Trust Mine operation is located approximately 6 miles west of Ouray Colorado up Yankee Boy Basin <br />Road. 42 MWT Mining Company, LLC mine representative Bob Larson was present during the inspection. <br /> <br />The mine identification sign was observed at the entrance to the mine site and is in compliance with Rule <br />3.1.12. <br /> <br />The mine was not active during the inspection. Various excavation and hauling equipment was observed <br />throughout the mine site. The mine site was somewhat disorganized and various pieces of scrap material <br />and defunct mining equipment was observed. This is not seen as a problem at this time and seems to be <br />more of a lack of good “housekeeping”. Recent evidence of stockpiling of mine development rock adjacent <br />to the southern permit boundary which is adjacent to Sneffles Creek. The stock pile appears to be stable <br />and it is within the permit area. <br /> <br />The main focus of the inspection was to observe the current conditions of the site and investigate the <br />stockpiles of mine development rock from the Ruby Trust Mine that was stockpiled adjacent to Ouray County <br />Road 26. The Division received a citizen complaint alleging that the mine was illegally stockpiling and using <br />mine development rock to surface Ouray County Road 26. The mine representative present stated that <br />there is an agreement between 42 MWT Mining Company and Ouray County that allows the mine to donate <br />and stockpile the mine development rock to Ouray County for a road maintenance and improvement <br />project. The stockpiled development rock appeared to be inert which is consistent with the geochemistry <br />of the vicinity of bedrock located within and near the Ruby Trust Mine. The operator must provide a signed <br />affidavit from Ouray County that demonstrates that an agreement is actually in place between the mining <br />operation and the county no later than July 15, 2016 to avoid enforcement action. Also, the operator must <br />provide a geochemical analysis of the development rock that demonstrates that the rock is in fact inert. <br /> <br />A deteriorated tarp placed over a low grade ore pile was observed during the September 2015 inspection has <br />been replaced and the ore stockpile has been relocated near the underground mill. <br /> <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation <br />Mining and Safety Grand Junction Field Office, 101 South 3rd Street, Suite 301, Grand Junction, Colorado <br />81501 phone no. (970) 241-2042. <br /> <br /> <br /> <br /> <br />