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PERMIT#: M-1977-403-HR <br /> INSPECTOR'S INITIALS: LJW <br /> INSPECTION DATE: August 25,2021 <br /> OBSERVATIONS <br /> This inspection was conducted as part of the normal monitoring program established by the Colorado Division <br /> of Reclamation, Mining and Safety. The Idarado Mine is listed as an active 112d-3 permit with permitted areas <br /> in San Miguel County, near the town of Telluride, as well as in Ouray County, near the top of Red Mountain <br /> Pass. This inspection was isolated to the Red Mountain Facilities of the Permit Area. Eric Schoenebaum of <br /> Newmont and Melissa Chalona of Engineering Analytics, a consultant for the Operator, were present during <br /> the inspection. The Division currently holds a Financial Warranty in the amount of$226,600.00 for the site. A <br /> reclamation cost estimate update was not performed as a result of this inspection. Future permitting actions <br /> will require a reclamation cost estimate update and will be performed at that time. Six Photos accompany this <br /> report to illustrate the current site conditions of the site. <br /> The Red Mountain Facilities were not active at the time of the inspection. The proper mine identification sign <br /> was posted at the entrance to the site and the Permit Boundaries were clearly delineated. Over the recent <br /> months, construction of the new shop has been completed, as was noticed by the Operator. The previous <br /> shop structure was in various states of disrepair and a new facility was constructed to facilitate ongoing site <br /> maintenance and reclamation activities. The new shop, as well as pad areas can be seen in Photo One. The <br /> shop is in excellent condition and should serve the needs of the site quite well. All grading and concrete <br /> surrounding the shop create positive drainage and no impounded storm water was noted around the shop <br /> area. Concurrently the old shop facility is being demolished, and removed by a contractor for the Operator. <br /> Demolition operations were not active at the time of the inspection, however were resumed the following <br /> day. The old shop, seen in Photos Two and Three, is approximately 1/3 removed. The material is being <br /> dismantled and loaded into roll off dumpsters for offsite disposal. <br /> Other reclamation activities are ongoing, several historic tanks and other various mining related debris has <br /> been staged for removal. All items are stored in neat and orderly fashion and can be seen in Photo Four. <br /> Discussions with the Operator indicate that further reclamation of the historic mill foundation located on site <br /> is slated to take place over the next years. The foundation can be seen in Photo Five. The portal, shown in <br /> Photo Six, was also observed, and secured. No signs of vandalism or attempted unauthorized entry was <br /> noted. <br /> The overall footprint of the site is in excellent condition and free from trash and debris. All pads and work <br /> areas were stable at the time of the inspection, and exhibit positive drainage. All storm water diversions and <br /> control structures were observed and were functioning as designed. No signs of settling, slumping or erosion <br /> was noted throughout the site, and no State-listed Noxious Weeds were observed. There are no problems or <br /> possible violations at this time. All responses to this report should be directed to Lucas West at the Colorado <br /> Division of Reclamation, Mining and Safety at 1313 Sherman Street, Room 215, Denver, CO 80203. Direct <br /> contact can be made by phone at 303-866-3567 Ext. 8187 or by email at lucas.west@state.co.us. <br /> Page 2 of 6 <br />