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(Page 2) MINE ID rr OR PROSPECTING ID ii M-1982-020 INSPECTION DATE 7/2/01 INSPECTOR'S INITIALS RCO This inspection was performed as part of the Division's monitoring of Hard Rock and Metals 110 permits. The operator was contacted about the inspection, and a time was arranged to meet near the operator's office. Discussion about the site and this inspection occurred at this meeting, but this inspector proceeded alone to the site. The operator named on page one was not present during the inspection. This is an underground mine with a surface processing facility and tailings disposal pond. At this time neither the mine nor the processing facility are active. The site is fairly remote and not supervised, but appears to be adequately secured against most vandalism. The mill building is steel and its doors are locked. The diesel fuel tank is outside the building, but is empty and earth bermed. There is no contaminated soil evident. No drums containing chemicals, hydrocarbons or waste materials were observed outside the building. The reclamation of the site allow the mill building to remain. There was what appears to be a closed wellhead near the NW corner of the building. This well or pipe is not noted on any permit maps. Is this the "well" to bring water from the underground workings to the surface? The operator reports that there is no milling or processing carried presently. There is an assay lab in the building. It is not known what chemicals currrently exist or in what quantities inside the mill building. When the operation is activated, an accounting of all chemicals present will be required. From the perspective of the Division's reclamation liability for any chemicals present (i.e., handling, clean-u p, disposal, etc.) a current list of the chemicals and substances would be very useful. The entry door at the headframe is locked, and prevents access to the shaft. The secondary escapeway located near the south side of the tailings pond is also locked. The cyanide pond is fenced, signed ("danger cyanide") and its gate is locked. The pond presently holds water from the underground mine, but does not contain any cyanide. The fence should be inspected for breaches prior to its use for containing chemicals, to guard against wildlife poisonings. The pond has at least 8 feet of freeboard, and the exposed liner appears intact. There was no sign of seepage downhill on the embankment. There is only a small amount of ore material present, mostly consisting of spilled material near the earth loadout and conveyor southwest of the building. The other, older structures near the mill building were not inspected. There is a large amount of construction-related equipment, various vehicles and parts located on land to the east of the mill building. That land is owned by the permittee and used for his other business needs, but is not in the 8-acre permit area and is not used in this operation. The tailings pond is stable. Some tailings presently exist in the pond. They are approved to remain, and will eventually require only minor shaping prior to final reclamation. There was no impounded water in the tailings pond. The dam is stable, well vegetated and exibits no erosion on either face. Its final reclamation includes breaching to allow positive drainage. The topsoil pile on the west part of the dam is also stable. The bond amount is presently 59,100, in the form of three CDs (52,000, 53,000, and 54,1001. The bond was last reviewed and increased to its present level in 1993. The Division is required to review all bonds periodically. Though no additional disturbance has occurred since the bond was adjusted, costs of fuel, and labor and equipment rates have increased since 1993, possibly making the bond insufficient. The costs will be recalculated, based on the approved reclamation plan and the 1993 reclamation cost scenario. If the required bond has increased, the operator will be notified, and have 60 days in which to provide the required increase. There are no problems at this time. All responses or questions about this inspection report should be directed to this inspector at the Division's Durango Field Office. The address is: Division of Minerals and Geology, 701 Camino del Rio, Room 125, Durango, Colorado 81301; telephone 970/247-5193, or fax 970/247-5104. cont.