2020-02-26_INSPECTION - M2020010

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File#: M2020-010 INSPECTOR'S INITIALS: ECS INSPECTION DATE: January 29,2020 OBSERVATIONS The Division of Reclamation, Mining and Safety (Division/DRMS) conducted a site inspection of the Mountain Plains Mill based on the appearance of the facility on the Discovery Channel television show "Reclaimed". The mill is considered a possible unpermitted milling operation by the Division based on material presented on the show. The site inspection was conducted by Eric Scott and Michael Cunningham with the Division. The Division contacted mill representative Paul Danio prior to the inspection. Mr. Danio and his business associates Dave Emslie, and Steve McClintock met DRMS at the site and were present during the inspection. The Mountain Plains Mill site is located in northern Jefferson County approximately 0.25 miles east of Highway 93, and 0.8 miles north of Westgate Road. The site is on approximately 2 acres of land leased from Mountain Plains Industrial Center LLC (MPIC), and situated on a strip of property east of a railroad spur, on the eastern edge of the larger MPIC parcel. Parcel ownership is based on the Division's search of the Jefferson County Assessors website. Mr. Danio stated that the 2 acre mill site was leased beginning in May of 2019 and that the mill facility was constructed beginning in the summer of 2019. The facility consisted of a conveyor for ore into a small rod mill,followed by separation tables and a flotation circuit for the crushed ore, with the supporting infrastructure and materials. Several shipping containers/trailers and two water tanks were also located on site (see attached photos). Mr. Danio stated that any/all waste tailings generated were then to be removed from the site for use in a subsequent commercial process, or for disposal at a proper facility. The mill did appear to be operational or near-operational at a limited scale. Although it was open to the environment at the time of the inspection, Mr. Danio stated that in the future the facility would be enclosed by a building. During an episode of the Reclaimed program, the mill was depicted as processing ore obtained from a nearby site in Gilpin County. Mr. Danio stated that although the mill was operated for limited testing after construction (approximately 10 tons processed) the activities depicted in the TV program were staged, and the mill was essentially utilized as a prop for filming. The mill was not operating at the time of the inspection. Only small.amounts of unprocessed material, and waste tailings were noted on-site (photos 5 and 7).. During the inspection the Division reminded Mr. Danio and his associates that the Mined Land Reclamation Board, through a formal Rulemaking on May 22, 2019, removed the definition of'custom mill' from the Mineral Rules and Regulations of the Colorado Mined Land Reclamation Board for Hard Rock, Metal, and Designated Mining Operations (Rules). Additionally, the Memorandum of Understanding (MOU) between the Division and the Colorado Department of Public Health and Environment's Hazardous Materials and Waste Management Division was revised in May 2017. The revised MOU clarified that milling is a mining activity which is subject to the provisions of the Rules and is solely regulated by the Division. The Division considers the operation of this mill facility to be a mining activity and therefore subject to DRMS permitting requirements. To-date no Reclamation Permit has been submitted or approved for this facility. This inspection report serves as notice to the mill owners that a Reclamation Permit is required to be submitted and approved by the Division in accordance the Rules prior to metals milling/processing activities occurring at the site. Any metals milling/processing activities conducted without the Division's approval may be considered illegal mining resulting in the issuance of a Reason to Believe a Violation Exists notice by the Division and an Page 2 of 5