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<br />(Page 3) <br />MINE ID # OR PROSPECTING ID # <br />INSPECTION DATE 7120/99 INSPECTOR'S INITIALS WHE <br />The following problems IPB) end/or possible violations (PV) land suggested corrective actions) were identified during this inspection. <br />The problems should be corrected by the dates given, or they will become possible violations. The possible violations should be <br />corrected by the dates given to reduce their severity when considered by the Mined Land Reclamation Board. The inspector noted <br />on the previous page should be notified of all corrective actions taken. <br />PROBLEMS/POSSIBLE VIOLATIONS <br />AND <br />CORRECTIVE ACTIONS <br />CORRECTION <br />DATE <br />1. Mine identification sign, required by Rule 3.1.12(1), was not observed. Affected area perimeter markers, <br />required by Rule 3.1.12(2), were not observed. DMG identified absent signs and markers as a Problem in the <br />inspection report generated from the 8/28/97 inspection. Evidence of compliance with the corrective actions <br />required from the 8/28/97 inspection report was not observed. <br />CORRECTIVE ACTION: Post and maintain the signs and markers, required by Rule 3.1.12, within 30 days, <br />by August 26, 1999. Provide photo verification to DMG Durango Office, 484 Turner Drive, Building F, Suite <br />101, Durango, CO 81301, of the newly posted signs and markers, by September 10, 1999. <br />8/ 26 199 <br />PV or PB PB <br />TOPICS ~~ <br />2. Notice of Insufficient Financial Warranty - DMG has reviewed the cost of reclamation for the Eldorado <br />Pilot and has determined that the existing 51,000 financial warranty is insufficient to ensure reclamation. <br />DMG estimation of the current cost of reclamation totals 52,344. However, financial warranties for 110(1) <br />type operations may not exceed 51,500, as required by C.R.S. 34-32-110(11(d)(q. <br />CORRECTNE ACTION: Pursuant to Rule 4.2.1(2), the operator has 60 days from the date of this notice to <br />post 5500 additional financial warranty, to total not less than 51,500. Please ensure that DMG has received <br />and approved financial warranty to total not less than 51,500 by September 27, 1999. 9 / 27 / 99 <br />PV or PB PB <br />TOPICS FW <br />3. DMG records indicate that mining operations have remained inactive since 1993 and have therefore been <br />in Temporary Cessation status for the past 7 years. However, DMG records do not indicate receipt of the <br />Notice of Temporary Cessation from the operator, as required by Rule 1.13.5. Additionally, DMG records do <br />not indicate receipt of the request for extension to the initial 5 year period of Temporary Cessation, as required <br />by Rule 1.13.8. <br />CORRECTIVE ACTION: Within 30 days, submit the required Notice of Temporary Cessation and request for <br />extension to the initial 5 year period of Temporary Cessation, in accordance with Rule 1 .13.5 and 1 .13.8. <br />Submit the Notice of Temporary Cessation and request for extension to the DMG Durango Office, 484 Turner <br />Drive, Building F, Suite 101, Durango, CO 81301, by August 26, 1999. 8 126 199 <br />PV or PB ~ <br />TOPICS AR. MP. RS <br />