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Colorado Inactive Mine Reclamation Program <br /> CLOSEOUT REPORT <br /> BOND FORFEITURE PROJECTS <br /> Introduction: The Gold King Mine is located 12 miles from the town of Silverton, up Cement Creek in San Juan County, <br /> Colorado. The Gold King Mine is one of the largest acid mine drainage metals loader in the Animas River Watershed and <br /> one of the worst mine drainages in the State of Colorado. The reclamation bond on this site was sufficient enough to cover <br /> the reclamation plans in the DRMS permit. However, the bond was not established with the intent of remediating the acid <br /> drainage that emanates from the entry. The acid mine drainage at the site began in 1995 when the American Tunnel was <br /> bulkheaded, well after the Gold King permit was issued. Reclamation in 2008 and 2009 at the site included closing four <br /> portals, reclaiming a drill road, disposing of trash, and the installation of a flume and a lined ditch at the Level Seven Portal <br /> to help with future water sampling needs. <br /> Permit Information <br /> Permit Number Operator Name Mine Name <br /> M-1986-013 Gold King Mines Corporation Gold King Mine <br /> Type of Mine—underground hardrock Commodity Mined—gold and silver <br /> PRE-RECLAMATION SITE CONDITIONS <br /> Prior to reclamation the Gold King Mine had 2 open portals, 2 collapsed portals, 1,600 feet of drill road, wooden and metal <br /> debris, and roughly 200 gallons per minute of mine drainage with a pH of 3 and high metals concentrations. In 2008, the <br /> Gold King Permanent Portal Discharge Project collected all the mine drainage from the Level 7 Old Portal and re-routed the <br /> drainage off of the mine waste into a high density polyethylene lined ditch, in an effort to help facilitate future sampling <br /> efforts. <br /> It should be noted that the mine drainage from the Level 7 Old Portal was not part of the original mine permit application <br /> because the portal was dry at the time of permit issuance in 1986. Mine drainage from the site began after the bulkheading <br /> of the American Tunnel in 1995, which previously deep-drained the mining district. <br /> BIDDING/CONSTRUCTION INFORMATION <br /> This project was bid as an invitation only documented quote, with the understanding that project costs may exceed <br /> $25,000.00. Eleven contractors were invited to bid and three contractors attended the pre-bid meeting. K and P Property <br /> Design was the low bidder. <br /> Type of Bid Documented Quote <br /> Bid as the Gold King Bond Revoke 2009 Project, PKA-10-1168 <br /> PO Number Contractor Name&Address Construction Bond Amount(after the 2008 project) <br /> OE-PKA-10-26 Dates $36,847.26 <br /> K and P Property Design Start: Bond Forfeiture Severance Tax: <br /> PO Date 236 S. 3rd, #219 9/4/09 $2,082.74 <br /> 8/28/09 Montrose, CO 81401 End: Initial Project Cost: <br /> 10/5/09 $23,950.00 <br /> Change Order#1 (9/17/09): <br /> $14,980.00 <br /> Final Project Cost <br /> $38,930.00 <br /> Construction Work Description <br /> In 2009 all four permitted adits were backfilled, a flume was installed in the previously lined ditch, and 1600 feet of drill road <br /> was reclaimed. The Sampson Portal was backfilled with on-site materials and the wooden and metal debris was buried on- <br /> site. The Number One Portal was also backfilled with on-site materials and the debris from the site was buried to the east of <br /> the portal in the waste pile. In addition, a 1600 foot long drill road from the Number One Portal to immediately below the <br /> Sampson waste pile was re-contoured, ripped, mulched, and seeded. <br /> As of 05/I dino <br />