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PERMIT#: M-1990-057 <br /> INSPECTOR'S INITIALS: MAC <br /> INSPECTION DATE: August 3, 2016 <br /> OBSERVATIONS <br /> The inspection was conducted by Michael Cunningham and Dustin Czapla of the Division of Reclamation, <br /> Mining and Safety (Division). Nick Michael and Steve Craig with Union Milling Company, LLC were also present <br /> for the inspection. The Leadville Mill is located approximately 2 miles south of Leadville off Highway 24. <br /> The inspection was conducted as part of the Division's regular monitoring program and the primary purpose of <br /> the inspection was to assess the progress towards completing construction of the tailings storage facility (TSF). <br /> The Leadville Mill is not currently operating and the Operator does not have a continuous presence at the site. <br /> The site conditions remain largely unchanged from the Division's last inspection. <br /> Support Facilities On-site: <br /> Mill Building <br /> The inspection commenced with a tour of the mill building. The Operator has been working on upgrades to <br /> bring the mill into conformance with Mine Safety and Health Administration guidelines including installing toe <br /> guards, safety railings and guards on equipment with moving parts. In addition, the Operator has upgraded <br /> the ventilation system. The various components and circuits of the mill are in place, but are not currently <br /> operational. The Division observed water within the sump in the mill. According to the Operator, the water <br /> was captured in the sump as snow drifts adjacent to the mill building melted and flowed under the bay door <br /> on the south side of the building. The Operator informed the Division they will address this issue by installing <br /> gutters on the mill building. The Division reminded the Operator the sump must be empty when the mill is <br /> operational. <br /> Tailings Storage Facility <br /> The tailings impoundment has been constructed to final grade. However, the Operator must dress the bottom <br /> of the TSF and then install the composite liner and the leak detection system. Final certification of the TSF as <br /> an Environmental Protection Facility will not occur until those tasks have been completed. The Division <br /> traversed the perimeter of the TSF and found the outslopes are mostly bare, with little vegetative growth. <br /> However, the outslopes of the TSF were stable and did not show any signs of erosion. The Operator has <br /> maintained the silt fencing around the TSF; the fencing was anchored in place and was functioning properly. <br /> The Operator was unsure when construction of the TSF would resume and informed the Division the <br /> completion of the remaining tasks are dependent on securing additional funding. The Construction Schedule <br /> for the TSF which was approved pursuant to Rule 6.4.21(15) is no longer valid. The Operator will be required <br /> to submit a revised Construction Schedule for Division review and approval prior to resuming construction <br /> activities on the TSF. <br /> Storm Water MGT Plan: <br /> The Division inspected the ore stockpiles located east of the TSF, which will provide the initial feed for the mill <br /> when it is operational. The stockpiles have been covered with Visqueen and silt fencing has been erected <br /> around the perimeter of the stockpiles. The Division inspected a separate stockpile of waste rock located on <br /> the north side of the TSF. This material will be used as a ballast for the TSF liner once it is installed. The <br /> stockpile was also covered with Visqueen and silt fencing had been erected around the perimeter. However, <br /> Page 2 of 9 <br />