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(Page 2) <br /> MINE ID#OR PROSPECTING ID#M-1977-438 _ _ <br /> INSPECTION DATE 6-7-2002 INSPECTOR'S INITIALS SSS <br /> OBSERVATIONS <br /> This inspection was conducted to evaluate site conditions to ensure the recently recalculated reclamation cost estimate <br /> accurately represented the reclamation liability at this site. <br /> The site remains in substantially the same condition as specified in DMG's 1-13-1999 inspection report. Concerns noted in <br /> that report appear to remain, and no response from the permittee was found in the file. These concerns are noted as problems <br /> in this report and must be addressed as specified in the corrective actions detailed on the last page of this report. <br /> The mine identification signs do not identify the correct permittee. The previous permittee's name must be removed-frorrrthe <br /> signs and replaced with the current permittee's name. Additionally, another sign needs to be posted on the access road to <br /> the uppermost portal and dump area. Adequate signs must be in place by no later than August 9, 2002. <br /> The upper portal has obviously not been used for quite some time. However, the gate for this portal was unlocked and could <br /> pose a safety hazard. The operator should ensure the portal remains locked when the site is unattended or not in operation. <br /> The mineralized material stored on the lower bench of the northern portal area remains as described in the 1-13-1999 <br /> inspection report. This material was placed there between the 8-11-1997 DMG inspection and the 1-13-1999 report. It appears <br /> that this material is either ore or highly mineralized waste rock. In either case, to minimize potential adverse impacts to the <br /> hydrologic balance and potential for offsite damage, the material needs to either be removed from site and processed, buried <br /> in place with several feet of inert material covering it, or placed back within the mine. The operator must specify to DMG, in <br /> writing, no later than July 17, 2002, how this problem will be corrected. The on-ground compliance must be completed no later <br /> than August 9, 2002, with photographic evidence of compliance submitted to DMG by that date. <br /> The stormwater control berms at the crest of all waste rock piles need some maintenance to ensure stormwater is directed <br /> away from the face of the dump to minimize impacts from erosion. Some regrading of the top surface of the waste dump may <br /> be necessary to direct surface water flows away from the crest so ponding does not occur against the stormwater control berm. <br /> If regrading and berming leads to concentrated surface flows that skirt around the dump perimeter, the operator will need to <br /> ensure the drainage path is stabilized against erosion. If this requires installation of an armored channel, then a technical <br /> revision addressing engineered designs and construction of this channel(s)will need to be submitted to DMG. The operator <br /> will need to complete the specified berm maintenance and submit photographic documentation of compliance, for all permitted <br /> waste rock dumps affected since permit issuance, by no later than August 9, 2002. <br /> It appears that the current reclamation cost estimate dated February 6, 2002 is a figure does accurately reflect the reclamation <br /> liability at this site at this time. The operator has until July 22, 2002 to have the increased financial warranty in the amount of <br /> $16,659.00 submitted to, and accepted by DMG. If not received and accepted by that date the matter will be scheduled for <br /> a hearing before the Mined Land Reclamation Board for permit revocation and forfeiture of the financial warranty. Though the <br /> current financial warranty is insufficient to totally reclaim the site, the operator will be liable for the total cost of reclaiming the <br /> site per the specifications of the approved reclamation plan and the requirements of Mined Land Reclamation Act <br /> No significant infestations of noxious or other problematic weeds were noted on site during this inspection. <br /> Responses to this inspection report should be directed to Steve Shuey at the Division of Minerals and Geology, Grand Junction <br /> Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado 81501, phone number 970-243-6368. <br /> I & E Contact Address cc: <br /> O CE <br /> NAME Raymond Fitzgerald BL Lynn Lewis - Montrose Office <br /> OPERATOR Grand Mesa Mining Corp. ❑ FS <br /> STREET 1155 Avenue of the Americas, 28th Floor 0 HW <br /> CITY/STATE/ZIP New York, New York 10036 ❑ HMWMD (CH) <br /> O SE <br /> ❑ WQCD (CH) <br /> O OTHER <br />