INSPEC04789

• Permit No: M1990059
• IBM Index Class Name: Inspection
• Doc Name: MINERALS PROGRAM INSPECTION REPORT
• Inspection Date: 7/20/1999
• Media Type: D
• Archive: No

MINE ID # OR PROSPECTING ID #
INSPECTION DATE 7120/99
(Page z)
OBSERVATIONS

INSPECTOR'S INITIALS YIIHE
This inspection occurred in accordance with DMG routine monitoring program for permitted operations.
Eldorado Pilot is a 11011) type permit approved for 0.11 acres affected area. The permit area is located
approximately 9 miles SW of Ouray, in Yankee Boy Basin, in portions of the SE 1 /4 of the NW 1 /4 of Section
17, T43N, RSW, NMPM, Ouray County. DMG did not encounter mine personnel at the site. Evidence of
recent mining/reclamation activities were not observed, operations appeared dormant. Numerous tourist were
observed in the area.
Signs & Markers Mine identification sign, required by Rule 3.1.12(1), was not observed. Affected area
perimeter markers, required by Rule 3.1.1212), were not observed. DMG identified absent signs and markers
as a Problem in the inspection report generated from the 8/28/97 inspection. Evidence of compliance with
the corrective actions required from the 8/28/97 inspection report was not observed.
Portal Mining related disturbances appeared to be limited to the portal, stockpiles of waste rock and/or low
grade ore, topsoil stockpile, and mining related debris. DMG measured affected areas at 0.15 acres. Chain-
link gate closure for the portal had collapsed, portal entry was not secured. Evidence of rock fall and slope
movement was observed at the portal. The open portal appeared unstable and potentially hazardous. Water
was impounded within the portal by snow(ce/debris dam, mine drainage was trickling from the portal. Portal
discharge appeared clear, evidence of mineral staining was not observed.
Waste Rock Stockpile Toe of waste rock stockpile extended into wetland type areas and was in direct
contact with surface waters. Potential for adverse impact to the hydrologic balance may exist due to the
pyritic content of the low grade ore and waste rock material, which has been placed in contact with surface
waters. Placement of the pyritic material in direct contact with surface drainage does not appear to be in
compliance with Rule 3.1.5(5), 3.1.5(10) and 3.1.6(11. DMG identified the issue of waste rock materials
being placed in direct contact with surface drainage, as a Problem in its 8/28/97 inspection report, and
requested that the operator remove the material from contact with surface drainage. Evidence of compliance
with the corrective actions of DMG's 8/27/97 inspection report was not observed.
Insufficient Financial Warranty DMG has reviewed the cost of reclamation for the Eldorado Pilot and has
determined that the existing 51,000 financial warranty is insufficient to ensure reclamation. DMG current
estimation of the cost of reclamation totals 52,344. Please find enclosed, copy of DMG's 7/21 /99 reclamation
cost estimation. However, financial warranties for 110(1) type operations may not exceed 51,500, as
required by C.R.S. 3432-110(1)Id)111. Pursuant to Rule 4.2.112), the operator has 60 days from the date of
this notice to post 5500 additional financial warranty, to total not less than 51,500.
Temporary Cessation DMG records indicate that mining operations have remained inactive since 1993 and
have therefore been in Temporary Cessation status for the past 7 years. However, DMG records do not
indicate receipt of the Notice of Temporary Cessation from the operator, as required by Rule 1.13.5.
Additionally, DMG records do not indicate receipt of the request for extension to the initial 5 year period of
Temporary Cessation, as required by Rule 1.13.8.
I & E Contact Address cc: Tom Gillis, DMG
NAME Gil Moser
OPERATOR Gil Moser
STREET 877 N. Watson
CITY/STATE/ZIP Farmington. NM 87401
X CE, Nick Mezei
^ BL
^ FS
^ HW
^ HMWMD (CHl
^ SE
X WOCD (CHi, Sarah Johnson