Laserfiche WebLink
PERMIT#: M-1990-041 <br /> INSPECTOR'S INITIALS: MAC <br /> INSPECTION DATE: May 27,2016 <br /> Financial Warranty: <br /> The Division currently holds a financial warranty in the amount of$5,000.00. The financial warranty amount <br /> has not changed since the Reclamation Permit was issued in 1990. At the time the Reclamation Permit was <br /> issued, the statutory limit of financial warranty on a 110(2) Hard Rock site was $5,000. There is no longer a <br /> statutory limit for 110(2) Hard Rock sites. Financial warranty amounts are based on the site specific <br /> requirements for reclamation. Pursuant to Hard Rock Rule 4.2.1, all financial warranties shall be set and <br /> maintained at a level which reflects the actual and current cost of fulfilling the requirements of the <br /> Reclamation Plan. <br /> Based on observations made during the inspection, $5,000.00 is no longer adequate to complete reclamation <br /> of the site. The Division will perform a complete bond calculation to ensure the financial warranty amount is <br /> adequate to complete reclamation. Notice of any increase to the financial warranty will be sent under <br /> separate cover. <br /> Reclamation Success: <br /> Both the Bates-Hunter Mine and the Golden Gilpin Mill contain refuse, scrap metal, and mining equipment in <br /> various states of disrepair. The presence of the refuse has been documented in previous inspection reports <br /> and the Operator has been afforded numerous opportunities to remove the refuse from the mine and mill. <br /> The cost to remove the refuse, scrap metal and equipment will be included in the financial warranty <br /> calculation. <br /> Support Facilities On-site: <br /> The Division inspected the Golden Gilpin Mill facility during the inspection. The entrance to the mill site is <br /> secured with a locked gate. However, the doors on the north side of the mill building are not locked and the <br /> building is easily accessible to the public. The Division observed several holes in the roof of the mill building <br /> above the shop area. The roof is sagging in this area and it appears water has been flowing into the building <br /> through the openings in the roof. The Division observed graffiti on the walls of what appears to be an office <br /> area on the second floor, indicating unauthorized persons have been accessing the building. In addition, the <br /> Division observed numerous containers with various reagents, many of which were unlabeled. <br /> The main portion of the mill building contains all of the mill circuits and equipment including: crusher, ball mill, <br /> Denver jigs, conditioning tanks, flotation cells, filter press, Humphreys spiral and other ancillary equipment <br /> related to metallurgic processing. A small storage room is located on the east side of the mill building. The <br /> storage room contained the following reagents: <br /> 3 - 20 gallon containers of sodium hydroxide solution (50%) <br /> 1 - 55 gallon drum of caustic soda <br /> 2 - 55 gallon drums containing unidentified substances <br /> The Division also observed a secondary storage area accessible from the south side of the mill building. This <br /> storage area contained fifteen 55 gallon drums of unlabeled chemicals and reagents. The door to the <br /> secondary storage area was not locked and is easily accessible to the public. <br /> As noted above, the Division will be assessing the adequacy of the financial warranty. A review of the permit <br /> file found the original permit application stated all existing structures would remain at the end of the life of <br /> the mine. At the time of permitting, the Operator did not demonstrate to the Division that the mill building <br /> Page 3 of 12 <br />