2011-12-01_GENERAL DOCUMENTS - P1987013

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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-1987-094, M- Van Dyke Minerals Bueno Mine 1980-128UG, P- 1987-013) Type of Mine — Underground Commodity Mined- Gold PRE-RECLAMATION SITE CONDITIONS The Bueno Mine is located on private property 1.5 miles northwest of the town of Jamestown in Boulder County, Colorado. The site is accessed just north of Jamestown, along County Road 94. Two mining permits (M-1987- 094 and M-1980-128UG) and one Notice of Intent (P-1987-013) were revoked and the bond money forfeited in 1997. In 1998 the bond money was used to reclaim the site in the form of adit closures, hazardous waste removal and minor grading and seeding. In 2008 it was noted that Merendon Mining removed the adit closures installed by IMP without an approved permit or posting a reclamation bond. In particular, Merendon Mining removed the closure on the 750 Level (Big Boar), the 450 Level and performed some exploratory drilling. The Bueno 750 mine adit was partially lined with a one-hundred and eight inch diameter (108-inch) corrugated steel pipe (CSP) for a length of approximately thirty-six feet (36-feet). The CSP was partially collapsed filled with mine waste and discharging mine water. Around the CSP, highwalls ranged from 20 feet to 50 feet high making the adit area unstable and dangerous. BIDDING/CONSTRUCTION INFORMATION Type of Bid Documented Quote Purchase Order (circle one) Invitation for Bid PO Number: Contractor Name &Address: Construction Bond Amount- $0.00 PKA-11-1205 Dates: Severance Tax- $14,800.00 Jim Mobile, Inc. Emergency Response Fund- 4 Start:5/25/2011 $25,000.00 PO Date 32680 Inverness Drive End: 6/30/2011 Project Cost: $39,800.00 Evergreen, CO 80439 Construction Work Description Construction began on May 25, 2011 with equipment and materials being mobilized to the project site. Prior to closure of the 750 Level, the Contractor was required to address safety of working around highwalls created by the unauthorized prospecting operations. Highwall slopes on the south, west and north sides of the adit were reduced back to a 1 horizontal to 1 vertical (1 H:1 V) to comply with OSHA regulations. 750 Closure- The existing 108-inch diameter CSP was retained as a component of the closure due to the unstable nature of the surrounding highwalls. The Contractor cleared the 108-inch diameter CSP of debris and sludge to allow for positive flow of mine water. Mine water was directed into the tailings pond, immediately east of the 750 adit. Once the 108-inch diameter CSP was cleaned of mine sludge and water, an eighteen inch diameter (18-inch) high density polyethylene double walled (HDPE) pipe was placed inside the 108-inch diameter CSP, extending five feet (5') into the mine opening. A total of 130 feet of HDPE was used. A twenty-four inch (24-inch) layer of 1 '/2- inch clean, washed rock was placed over the 18-inch diameter double walled HDPE pipe and compacted. A forty-eight inch (48-inch) diameter, 12-gauge CSP 120 feet long was placed on top of the 18- inch diameter double walled HDPE pipe and rock layer. The 48-inch diameter pipe was attached to the outlet of the existing 108-inch diameter CSP. A grated access door with bat access was installed to the 48-inch diameter CSP. The area was then backfilled with stockpiled material, seeded and mulched. 450 Closure-A new grated closure was secured on the 108-inch diameter pipe. An access door six feet high by four feet wide (6'h* 4'w) was included.