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PERMIT #: M-1977-215 <br />INSPECTOR'S INITIALS: SJM <br />INSPECTION DATE: May 28, 2019 <br />OBSERVATIONS <br />This was monitoring inspection conducted by the Division of Reclamation, Mining and Safety (Division) in <br />response to a second consecutive Temporary Cessation Request submitted by Rio Grande Silver, Inc. on March <br />15, 2019. Mr. Randy McClure, representing the Operator, was present during the inspection. Photographs <br />taken at the site during this inspection are included at the end of this report. <br />The Bulldog Mine Operation is located .5 miles northwest of Creede, CO in Mineral County and can be <br />accessed from the Bachelor Road. <br />The appropriate mine identification sign was in place and in compliance of Rule 3.1.12. <br />The Bulldog Mine Operation is a 112d-2 underground mine that is currently in temporary cessation. The <br />commodities to be mined are lead and silver. The mine currently consists of 568 permitted acres and a <br />maximum allowed disturbance of 60 acres. <br />No mining related activities were observed during the inspection other that routine site maintenance and <br />storm water management. The main focus of the inspection was to observe the current conditions of the site <br />and determine if any issues needed to be addressed before the Mine Land Reclamation Board Hearing on June <br />26, 2019. <br />Overall, the operation was in good condition and no unnecessary debris or trash was observed. The site was <br />very neat and orderly. The portal was secured. All fuel containment structures are empty. <br />No erosion or sedimentation issues were noted. There are no major or minor drainage issues within the <br />permit area that warrant addressing. Straw waddles are in place at multiple locations. Topsoil stockpiles are <br />stable and have established vegetation. <br />The Division has a Financial Warranty in place at $163,228.13. It is adequate at this time. <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 number (303)866-3567 extension 8180. <br />Page 2 of 5 <br />