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PCRMIT ft: M-1990-041 <br />INSPECTOR'S INITIALS; MAC <br />INSPFCTION 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 />hgc 3 of 12 <br />