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• (Page 2) <br />MINE ID # OR PROSPECTING ID # M-90-057 <br />INSPECTION DATE 10/26/99 <br />INSPECTOR'S INITIALS ESC <br />This was an inspection of the Hopemore & Leadville Mine conducted by Erica Crosby, Carl Mount <br />and Harry Posey of the Colorado Division of Minerals and Geology. Donald Wilson representing <br />Leadville Mng & Milling Corp was present during the inspection. Weather conditions on site <br />were clear and cool. Ground conditions were dry. <br />The mine site is located approximately 3.3 miles east of Leadville and the mill is located <br />roughly 2 miles south of Leadville on Highway 24. The total disturbance of the mine and mill <br />sites is 8.5 acres of which 6.6 acres are applicable to the mill site and 1.9 acres are <br />applicable to the mine area. The mining and reclamation permit was issued in 1990. <br />Hopemore & Xunter Shaft Site <br />Mining at the Hopemore Shaft is actively taking place. The Hunter exit shaft was completed <br />early this year. Ore has been mined and hauled down to the mill for processing. Small piles <br />of low-grade ore were stored on site. The low-grade ore consist of lead and zinc and the <br />high-grade ore contains up to 70~ pyrite. The operator stated that all piles currently stored <br />on site would be run through the mill. Inert muck material was being removed from the <br />Hopemore Shaft during the inspection. The operator has used some of this muck material to <br />reclaim old abandoned shafts and subsidence features located on property owned by Leadville <br />Mining & Milling Corp. The features are located outside the approved permit boundary. The <br />Division does not believe this is a problem at this point in time because the material is <br />inert, and is being used to reclaim old mining features located on the operator's property. <br />However, the operator will need to send the Division a letter explaining this activity. <br />The following problems were noted at the Hopemore & Hunter Shaft Site that need to be <br />addressed; <br />1. The Division was unable to locate any permit boundary markers. Rule 3.1.12(2) requires <br />the boundaries of the affected area to be marked by monuments or other boundary markers. <br />The operator will need to mark the affected area and submit proof in the form of <br />photographs within 60-days of receipt of this report. <br />2. The permit makes note of an exit shaft, but the maps do not include the location of the <br />Hunter shaft. The operator will need to clarify the permit text and maps to include the <br />affected area of the Hunter Shaft. Permit and map clarifications must be submitted to the <br />Division in the form of a Technical Revision within 60-days of the receipt of this <br />report. <br />3. The operator is actively reclaiming old abandoned mining features on property owned by <br />Leadville Mining & Milling Corp. The operator is using muck material removed during the <br />mining process. The operator will need to submit the Division a letter stating the <br />location of the features and that only inert material will be used. <br />Mill Site <br />The operation was actively milling during the time of the inspection. The mill site consists <br />of the mill building and tailings pond. No chemicals are being used for the milling process. <br />The gold is separated from the ore on gravity tables. <br />