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PERMIT #: M-1991-054 <br />INSPECTOR'S INITIALS: SJM <br />INSPECTION DATE: August 16, 2017 <br />OBSERVATIONS <br />This was a routine inspection conducted by the Division as part of its monitoring of Hard Rock 110(1) permits. <br />Mr. Don Flickinger and Mr. Mike Allen accompanied me on the inspection. The site was not active on the day <br />of the inspection. The site is located at treeline, at the head of the Indian Creek drainage, 18 miles north from <br />HWY 114 on Forest Service Road 880. In the future, it is recommended to travel to site by ATV. <br />The required permit ID sign was observed posted at the entrance gate to the permitted area. Permit <br />boundary markers were installed at the boundary corners of the upper area. The permitted area is divided <br />into two separate rectangles, the upper one encompassing the former shaft location, staging pad, overburden <br />storage area, and the highwall that is actively mined; and the lower one which includes the portal and waste <br />rock dump/pad. The operator has not disturbed the lower portal area, but since it is also included in the <br />permit, its boundaries must also be marked (the same type of T -posts will be fine to use). The permit map is <br />old and should be updated in upcoming annual report, to reflect current conditions. <br />At the site, it was noted that there was a small dozer parked on the pad near the highwall, and an <br />accumulation of small tools and a gasoline generator were also on the site. There was no junk or stored fuel <br />noted. <br />The ore occurs in a nearly -vertical vein, about 2-3 feet thick. In order to remove the ore more effectively, <br />much of the surface material on the pad has been scraped away and placed in the overburden storage area at <br />the north end. This has lowered the elevation by about 2 feet throughout the upper pad area. There was no <br />stockpile of ore, and there is no mineralized water puddled on the pad or in runoff from the site. <br />The lower portion of the site contains an old portal with crosscut leading back to the vein, but the adit is <br />caved. It is not completely closed and it has not been used in many years. If the operator does not plan to use <br />the portal, it should be sealed; if there are future plans to rehab it, it should be secured against unauthorized <br />entry. The lower pad that was created from waste rock has not been recently disturbed either. (The operator <br />should note that there is an empty 30 -gallon steel drum on the lower pad that must be removed from the site. <br />It is not a contaminant, but it is liable to roll off the pad.) The lower pad area is becoming revegetated by <br />encroachment of native vegetation. <br />The bond is capped by statute at $1500. There were no problems noted. <br />Photographs from the inspection are on the following page. <br />Responses to this inspection report should be directed to Stephanie Mitchell at the Division of Reclamation, <br />Mining and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado <br />81501, phone no. 970-242-5025. <br />Page 2 of 5 <br />