2010-02-01_GENERAL DOCUMENTS - M1980169

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Colorado Inactive Mine Reclamation Program CLOSEOUT REPORT GLADIATOR/FLEECE ILMA BOND FORFEITURE PROJECT Introduction: The Gladiator/Fleece Ilma project was developed to complete the reclamation requirements that were not completed by the operator under their reclamation permit. The project was completed by closing the adit with a Corrugated Steel Pipe (CSP), sealed in place with polyurethane foam (PUF) and a native rock bulkhead. A twelve inch (12") high density polyethylene (HDPE) pipe was buried from the adit entrance, beneath the access road and discharged above a series of settling ponds which were constructed during mining operations. The adit drainage was collected behind a constructed dam within the portal, and channeled into two, six-inch (6"), HDPE pipes. The pipes connected to the twelve inch pipe, which carried the mine drainage from the adit to the settling ponds. A series of rock overflow channels were constructed between three of the setting ponds, to allow for non-erosive flow between the ponds. Permit Information Permit Number Operator Name Mine Name M-1980-169 Colorado Gold and Silver, Inc. Fleece Ilma Mine Type of Mine-Hardrock Commodity Mined: Ag and Au PRE-RECLAMATION SITE CONDITIONS The Fleece Ilma Mine is located approximately 3 miles south of Lake City, Colorado, directly west of Lake San Cristobal. An application for Mining and Reclamation Activities, Limited Impact Operations permit was issued to Colorado Silver and Gold, Inc. in 1980. The mining permit was revoked and the financial warranty forfeited by the State of Colorado in 2001. Preliminary reclamation work was done by DRMS in 2005, using the approximately $1,000.00 forfeited bond. Pre-reclamation site conditions included a partial adit closure, which had been tunneled around by visitors to site, and uncontrolled, metals laden mine drainage which flowed over the access road, through the dump, and into a wetland adjacent to County Road 30 and Lake San Cristobal. During high flows in the spring, the adit drainage would flow through a culvert and into Lake San Cristobal, creating a red plume in the lake. BIDDING/CONSTRUCTION INFORMATION DRMS received six bids for this project. The low bidder was J3 Environmental with a bid of$23,038.00.00 Type of Bid Documented Quote (circle one) Formal - Bid as the Gladiator/Fleece Ilma Bond Forfeiture Project, PKA-10-1161 Contractor Name&Address Construction Bond Amount: $0 PO Number J3 Environmental Dates Severance Tax OE-PKA-10000000010 PO Box 442 Start: 08/17/2009 Fredrick, CO 80530 End: 10/17/2009 $30,498.81 PO Date Project Cost 07/28/09 $30,498.81 Construction Work Description J3 Environmental mobilized to the site on August 17, 2009. The project was suspended from September 9 to October 13, 2009. Work on the site resumed on October 13, 2009, and the project was ready for final inspection on October 17, 2009. The adit was significantly larger than the six by eight foot(6'x8') opening originally anticipated, measuring approximately twelve by nine feet(12'x9'). Prior to closure of the adit, the floor of the mine was brought up approximately three feet(3') using rip-rap obtained on-site, due to the significant height of the tunnel and the large amount of muck on the mine floor(2- 3'). The dam was constructed ten feet(10') inside of the adit, and the final height of the dam was approximately four feet (4'). The dam/rib contact was problematic during initial construction, therefore, bentonite pellets were used to seal and limit seepage around the dam at the dam/rib contact. The drainage was diverted through HDPE pipes from behind the dam to a series of pre-constructed settling ponds. The HDPE pipes were buried with a minimum 2% grade from the adit to the outlet and buried a minimum of three feet beneath the access road surface. Rock overflows were constructed between the upper three ponds and the HDPE outlet to allow non-erosive flow between the ponds. A forty-eight inch (48") CSP was placed into the adit. PUF was used to secure the adit in place, and then the opening of the portal was closed with a native rock bulkhead. A steel access door was welded to the CSP, and locked with lock# E3670. The area in front of the portal was re- graded and a small channel was excavated to discourage ponding of natural spring water in the direct vicinity of the portal. Remaining Reclamation Requirements and Estimated Cost NONE As of 05/14/09