2016-12-15_GENERAL DOCUMENTS - M1992034

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Colorado Inactive Mine Reclamation Program CLOSEOUT REPORT ACTIVE MINE BOND FORFEITURE PROJECTS Permit Information Permit Number Operator Name Mine Name M-1992-034 Great Western Diamond Co. Kelsey Lake Type of Mine: 112 Commodity Mined- Diamonds PRE-RECLAMATION SITE CONDITIONS The Kelsey Lake Mine is located on private property northwest of Virginia Dale in Larimer County, Colorado. The 112 Mining/Reclamation Permit was issued in 1993 for the surface mining of diamonds. The permit area is approximately 811 acres, but only 50 acres were actually disturbed by mining. In 2014, the Mined Land Reclamation Board revoked the permit and forfeited the bond. A majority of the reclamation was performed by Great Western Diamond Company and included grading of the mine pit, reshaping the tailings pile, topsoil replacement and reseeding. The remaining work on to do on site involved repairing and stabilizing erosion features that formed on steep sections of the tailings dump. The flood of 2013 further eroded the channel creating dangerous conditions for livestock. BIDDING/CONSTRUCTION INFORMATION Type of Bid Documented Quote Purchase Order (circle one) Invitation for Bid PO Number: Contractor Name &Address: Construction Bond Amount- $39,411.00 CT-PKAA-20171256 Dates: Severance Tax- $37,119.00 CMS#92591 Epic Construction & Environmental Inc. Start:10/05/2016 PO Date 1806 W. Pikes Peak Ave. End: 11/16/2016 Project Cost: $76,530.00 9/22/2016 Colorado Springs, CO 80904 Construction Work Description Construction began October 5, 2016 with equipment and materials being mobilized to the project site. The eroded channel down the tailings dump is approximately 2,000 feet long and varied from two feet to twelve feet deep. The channel was divided into eight(8) segments and repairs and varied from minor grading to rip-rap/bedding channel installation. A summary of the channel segments from top to bottom are as follows: • Segment#1- 660 feet long, channel was regraded to an earth lined channel and revegetated. • Segment#2- 130 feet long, rock was removed, drainage reshaped and riprap installed. • Segment#3- 120 feet long, rock was removed, drainage reshaped to 10% grade and riprap installed. • Segment#4- 135 feet long, drainage reshaped and riprap installed. • Segment#5- 130 feet long, drainage reshaped and rock armoring on bends, channel revegetated. • Segment#6- 150 feet long, channel was regraded to an earth lined channel and revegetated • Segment#7-200 feet long, channel was regraded, topsoil replaced and seeded. • Segment#8- 460 feet long, channel was regraded and topsoil used to cover slopes, rock armoring on the outer channel bends and revegetated. Tailings material removed during reconstruction of the channel was placed in a stockpile outside of the drainage and covered with overburden/topsoil material and reclaimed. Other tasks include grading the lower road where erosion features were present, repairing erosion features on the reclaimed slope and installing a low water crossing at the base of the old sediment pond. Twenty(20)aspen waddles were installed throughout the channel and along steep slopes to slow down water and prevent further erosion features from developing. The disturbed areas (approximately 3 acres in size)were seeded, applied with Biosol fertilizer and mulched. Additional seed was given to the landowner for future maintenance of the site.